US Dollar Exchange Rates of
China Yuan 6.6947
Report from China
Clean air ¨C the ¡®Blue Sky¡¯ action
It has been reported that an air pollution control policy has
been formulated and will be implemented in Beijing,
Tianjin, Hebei, Shanxi, Shandong, Henan and Shanxi
Provinces in the autumn/winters of 2020-2021. This is part
of China¡¯s three-year ¡®Blue Sky¡¯ action plan. The latest
efforts to clean the air will impact wood product
manufacturers and it has been reported that 39 companies
have been ordered to stop production and some furniture
and wood-based panel enterprises are included.
China¡¯s wood-based panel industry
The China Green Times has reported on the 19th national
wood-based panel industry conference held recently. The
conference focus was on how to realise stable and healthy
development of wood-based panel industry in the context
of national economic policies.
Conference speakers noted that in the first half of 2020
there was a shortage of wood raw materials nationwide
and prices increased. Because furniture, joinery and
flooring production declined due to corona control
measures demand for panels dropped between January and
July resulting in an oversupply, a decline in prices and
fierce competition. The Green Times reports most
enterprises are barely breaking-even.
Between January and July domestic sales of plywood were
about 75% of that the same period last year. Particleboard
sales were about 85% of the same period last year.
Demand for fibreboard, which is heavily influenced by
furniture demand, was down around 25% year on year.
It is forecast that 2020 annual domestic sales of woodbased
panels will be 10% to 20% lower than in the same
period of 2019.
In the first quarter of 2020 the wood-based panel industry
began operations after a shut-down period but production
was at reduced levels. In the second quarter output was
impacted by regional floods, tight raw material supply and
In the second to third quarters of 2020 the pandemic
intensified in international markets. At present, with the
gradual recovery of the domestic market and improved
export demand, the health of the wood-based panel
industry is improving.
The wood-based panel industry is facing pressure due to
domestic and international economic adjustments and
from the increasingly high demand for environmental
protection in China all of which tends to drive up
production costs. Conference participants agreed adapting
to market changes and developing innovative technology
is the way forward for the industry.
China has a significant panel product machinery
manufacturing sector and there are more than 100 woodbased
panel machinery manufacturing enterprises with
annual main business income of more than RMB20
million in China. These companies can provide a wide
range of machinery for wood-based panel manufacturing
and wood-based panel secondary processing.
Green Times is forecasting that the wood-based panel
industry will gradually upgrade and develop intelligent
and green manufacturing, digitisation and information
services and will integrate production and services to drive
improvements in the industrial supply chain.
Plywood industry is adopting continuous and automatic
processing and is rationalising raw material utilization.
Changsha emerging market for Russian timber
The impact of the China-Europe Railway Express on
external trade is growing. In September 2020 the number
of trains rose over 85% compared to September 2019.
There is a huge demand for Russian timber such as scots
pine, spruce and birch in Changsha City, Hunan Province
and traders import these timbers via the China-Europe
Railway Express. Changsha City has been emerging as a
strong market for Russian timber.
After 6 years of operation the Changsha North Railway
terminal can handle 8 trains to and from Europe every
week. The railway express company has opened multiple
routes which include to Hamburg, Budapest and Minsk. In
addition the company can offer delivery services linking to
30 countries in Europe, Central Asia and the Middle East
with China's Central, Eastern and Southern regions.
Wood product exports from Lankao County
The wood product processing industry is a pillar of the
economy of Lankao County in Henan Province. The value
of wood product exports from manufacturers in Lankao
County in 2019 reached RMB760 million and the sector
generates thousands of jobs.
However, many wood product processing SMEs in
Lankao County encountered difficulties this year and
special service teams for small, medium and micro
enterprises have been established to solve solutions and
revive businesses. According to Jinshui Customs, in the
first half of 2020 the value of wood product exports from
Lankao County were some 45% higher compared to the
same period last year.