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China Wood Products Prices

01 – 15th July 2019

US Dollar Exchange Rates of  10th July 2019
China Yuan 6.8731

Report from China


  Decentralisation of logging quota approvals
China intends to amend one of its Forest Laws giving
provincial governments the authority to determine logging
quotas. Once a decision has been reached by the provincial
governments details of the quotas should be submitted to
the State Council for approval.

With regard to forest harvesting, the draft clearly
decentralises the approval authority for harvesting quotas,
narrows the scope of logging licenses and strengthens the
status and role of forest management. In addition, the draft
also removes reference to the planned economy, such as
timber production plans and timber transport certificates.

In terms of supervision, the draft added a section on
¡°supervision and inspection¡±, introducing a standardised
evaluation system for the development of forest resource
protection, strengthened the supervision and inspection
measures for the protection of forest resources and
clarified the public interest concerning compensation for
damage to the environment.


Wooden furniture exports in 2018
The value of China¡¯s wooden furniture exports was
US$13.489 billion in 2018, a year on year decline of 2%.
The US still is the main destination for China¡¯s wooden
furniture exports. The top 10 markets accounted for
around 75% of all wooden furniture exports.

The value of China¡¯s wooden furniture exports to South
Africa in 2018 surged 46% to US$312 million. However,
the value of China¡¯s wooden furniture exports to Hong
Kong declined greatly (27%) to US$804 million.

Wooden seat exports in 2018
The total value of China¡¯s wooden seat exports was
US$9.447 billion in 2018, a year on year increase of 5%.
The US still is the main market for China¡¯s wooden
furniture exports. The top 10 markets accounted for
around 80% of all exports.

The value of China¡¯s wooden seats exports to Singapore
and Saudi Arabia in 2018 fell 27% and 24% to US$129
million and US$124 million respectively. However, the
value of China¡¯s wooden seats exports to France rose 12%
to US$296 million.

Decline in wood based panel output in Guangdong
In the first 5 months of this year woodbased panel output
in Guangdong Province declined. Output of plywood in
the first 5 months fell 5% to 1.08 million cubic metres,
MDF output dropped 5% to 1.24 million cubic metres and
output of particleboard dropped 27% to 760 000 cubic

The output of plywood in May alone fell 15% to 213 000
cubic meters, middle and MDF output dropped 16% to
244 000 cubic metres while particleboard output dropped
25% to 163,000 cubic metres in May 2019.

Depressed demand in China for US hardwoods
The 24th AHEC Southeast Asia and Greater China
Convention was held recently in Ningbo city of Zhejiang
province. There are more than 3,000 furniture enterprises
in Ningbo city and more than 200 supporting enterprises.

Sector employment is estimated at 70, 000. 27 enterprises
have an annual output value of more than RMB100

The total value of American hardwood log and panel
exports to China was US$1.9 billion in 2018. Most of
American hardwood log species are used for furniture
market, wood doors and wood flooring.

However, because of increased export tariffs the
proportion of American hardwood exports to China has
declined to 19% in 2018 from 31% in 2017. The missing
part was mainly occupied by two countries, Gabon and
Russia. 25% of tariffs are paid on red oak and white oak.
20% of tariffs are paid on white ash and cherry.


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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