US Dollar Exchange Rates of 25th September
China Yuan 7.1185
Report from China
Estimates suggest 70% of wood processing mills
Because of the new environmental regulations many wood
processing mills in the Manzhouli, Suifenhe and Erlianhot
areas have stopped production. Some have closed their
business entirely while others have relocated and this has
altered wood product distribution channels.
The focus of attention of the environmental regulators has,
according to media reports, turned to cabinets and panel
factories in 34 provinces, municipalities and autonomous
regions. Nearly 3,000 panel factories in Wenan County,
Langfang City, Hebei Province have been told to cease
operation. This will seriously affect the domestic panel
market and the jobs for the around 10, 000 employees.
At present, Hebei Province is investigating the many small
scattered and polluting enterprises. Small panel factories
are given the option of relocating or upgrading to satisfy
the environmental regulations. It is reported that 1,274
panel enterprises were told to cease operation.
Local experts have confirmed that a large number of small
and medium-sized panel factories across Jiangsu and
Zhejiang Provinces have closed because they could not
afford to retool or relocate.
Decline in China¡¯s tropical sawnwood imports in 2019
Data from China Customs shows that there was a slight
rise in sawnwood imports in the first half of 2019.
China¡¯s first half sawnwood imports totalled 18.83 million
cubic metres valued at US$4.43 billion, a year on year
increase of 4% in volume but an 8% drop in value.
Of total sawnwood imports, sawn softwood imports rose
17% to 14.12 million cubic metres and accounted for 75%
of the national total. However, sawn hardwood imports
fell 22% to 4.71 million cubic metres.
Of total sawn hardwood imports, tropical sawnwood
imports were 2.74 million cubic metres valued at US$1.0
billion, down 22% in volume and down 28% in value.
Tropical sawnwood imports accounted for 15% of the
China¡¯s tropical sawnwood imports from Thailand were
1.784 million cubic metres valued at US$528 million,
down 24% in volume and down 31% in value. Tropical
sawnwood imports from the Republic of Congo rose 87%
in volume and 71% in value in the first half of 2019.
However, China¡¯s tropical sawnwood imports from
Vietnam, Indonesia and Malaysia fell sharply by 69%,
51% and 30% respectively.
Sharp decline in China¡¯s wood furniture exports to US
As a result of weakening global demand the value of
China¡¯s wooden furniture exports fell 10% to US$9.8
billion in the first half of 2019. Of the total, the value of
China¡¯s wooden furniture exports to USA was US$3.807
billion, a year on year decline of 18%.
The proportion of China¡¯s wood furniture exports value to
USA dropped to 39% in the first half from 42% in the first
half of 2018. It is anticipated that the value of China¡¯s
wooden furniture exports to the USA will fall further in
the second quarter. The United States imported 55 percent
of wood furniture from China in 2018.
China/Italy cooperation in high tech processing
A cooperation agreement was recently signed between
Lanshan District government in Linyi city of Shandong
Province and the Italian IMAL & PAL Group. The focus
of the agreement is on wood machinery R&D to drive
technological updating of the wood industry in Lanshan
District. The two parties agree to establish a strategic
cooperation partnership to enhance transformation and
upgrading of medium and small scale panel processing
mills and to jointly establish a China-Italy Wood
Machinery Scientific Innovation Center.
Lanshan District is the largest panel production base in
China accounting for 30% of the national panel output
with more than 3,200 wood based enterprises. Annual
production is of more than 20 million cubic metres of
wood products and exports amount to around 1.5 million
cubic metres of wood products mainly to Europe and the
Italian IMAL & PAL Group and its Chinese partner will
work together to build a major high-end panel distribution