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China Wood Products Prices

16 – 31th August 2017

US Dollar Exchange Rates of  25th August 2017
China Yuan 6.6
Report from China


 New environmental protection regulations
The State Council has amended regulations on
environmental protection and management of construction
projects and the changes will become effective 1 October

One of important changes is that fees will no longer be
charged for the examination and approval of
environmental impact reports, environmental impact
reports forms and environmental impact registration forms
for construction projects.

In addition, government departments will be required to
notify the construction enterprises, in writing, their
assessments and decisions within 10 days of the
submission of environmental impact reports from

Soon - RMB100 billion custom made furniture market
China¡¯s custom made furniture market segment has been
growing in recent years and this segment accounts for
around 20% of the total domestic furniture market value.

In 2016 the market for custom made furniture was worth
RMB70 billion and it is forecast that this will expand to
RMB90 billion in 2017 and that the growth in this market
segment will be around 4% annually over the next 4-5
years rising to RMB 100 billion by 2020.

Cabinets and wardrobes currently dominate the demand
for custom made furniture and the market penetration of
this type of furniture is 60% for cabinets and 30% for

Monitoring of ¡®eco board¡¯ in Shanghai
¡®Eco board¡¯ has established itself in the home decoration
and indoor home furnishing market in recent years. Eco
board is blockboard or plywood laminated with
impregnated paper on one face and is marketed as an
¡®ecological and environmentally friendly wood panel¡¯.
Some of these products are marked E0 for formaldehyde
emission level.

Recently, the Shanghai Municipal Quality and Technical
Supervision Bureau conducted formaldehyde emission test
on some ¡®Eco board¡¯ to determine if they conform to the
national mandatory standard GB 18580-2001.

Wood-based panels directly used indoor must comply with
the E1 formaldehyde emission limit requirements in
national mandatory standard GB 18580-2001.

There is no Standard for E0 level formaldehyde emission
of wood-based panel in the national standard so E0 level
"Eco board" has no relevant basis.

However, some flooring products are classified E0 for
formaldehyde emissions. E0 emission levels must be less
than 0.5 mg/L (desiccator test method).

The Shanghai Municipal Quality and Technical
Supervision Bureau announced the results of risk
monitoring to ¡®Eco board¡¯ makers and suggested they take
the following measures.

Cease production and sales of wood-based panel
products for which emission levels for
formaldehyde are more than 1.5 mg/L.

Improve the standards and quality control system
of enterprises, strengthen the quality control of
raw materials, use formaldehyde free adhesive or
low formaldehyde emission adhesive, improve
production technology of decorative veneer, as
well as reduce the formaldehyde emission.

Regularly inspect raw materials and products,
supervise the quality of the product to ensure the
quality and safety of products.

Mark the range of the product's formaldehyde
emission on product packaging and do not use
any promotional language that could lead to
consumers misunderstanding the risks involved.

Production and exports of Guangdong furniture
According to Guangdong Furniture Association there are
1,170 furniture enterprises each having annual sales value
of RMB5 million in Guangdong Province. The total
income of furniture enterprises in the province was
RMB100.5 billion in the first half of 2017, a year on year
increase of 15%.

Of the total, wooden furniture dominates production. In
the first half of 2017 the income of wooden furniture
enterprises was RMB56.2 billion, a year on year increase
of 16%, accounting for 56% of the total.

The USA still is the main market for wooden furniture
from Guangdong and in 2016 exports to the USA were
worth RMB40.3 billion, a year on year increase of 1.5%,
making up 31% of the provincial total.

Guangdong furniture enterprises have been diversifying
their international markets to include the Philippines,
Indonesia, Thailand, Russia and new markets such as Iraq,
Kuwait, Pakistan, Singapore, Malaysia and Saudi Arabia.

The enterprises have also been diversifying their product
range and quality in efforts to expand market share.
Through branding they hope to improve competitiveness
in international markets and aim to explore sales of
furniture with domestic cultural characteristics, new
Chinese style furniture, fashion and simple furniture
emphasising functionality.

A first - Japanese cedar through Jingjiang Port
According to the Jingjiang Entry-Exit Inspection and
Quarantine Bureau, around 3,000 cubic metres of Japanese
cedar logs were imported through Jingjiang Port recently
making the first time for such arrivals.

Jingjiang has become China¡¯s third largest port in terms of
log import volumes. Log imports in 2016 exceeded 3
million cubic metres. In 2009 log imports through the port
totalled just 700,000 cubic metres. So far this year, log
imports through the port have exceeded 2.2 million cubic
metres and are set to reach 3.5 million cubic metre by year



LM        Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS         Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR            French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF         Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot               Price has moved up or down

Source:ITTO'  Tropical Timber Market Report

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