US Dollar Exchange Rates of
25th
Nov
2024
China Yuan 7.25
Report from China
Manufacturing Purchasing Managers' Index
A press release from the National Bureau of Statistics
provides details of the October Manufacturing Purchasing
Managers' Index.
In October, the purchasing managers' index (PMI) for the
manufacturing sector was 50.1%, an increase of 0.3
percentage points from the previous month indicating a
modest rebound in the sector.
The PMI for large and medium-sized enterprises was
51.5% and 49.4% respectively, up by 0.9 and 0.2
percentage points from the previous month. The PMI for
small enterprises stood at 47.5%, a decrease of 1.0
percentage point from the previous month.
See;
https://www.stats.gov.cn/english/PressRelease/202411/t2024111
5_1957434.html
First log "insurance + futures" project in Guangxi
It has been reported that the first log ‘insurance + futures’
project has been established in Guangxi Zhuang
Autonomous Region.
The production of logs in Guangxi Zhuang Autonomous
region ranks first in China, accounting for nearly 40% of
the national total. The launch of the futures project is an
active attempt to support the services of "agriculture, rural
areas and farmers" and provides a new tool for risk
management for log producers, helps them lock log prices,
transfers market price risks, boosts confidence, ensures the
stability of income and helps improve the resilience of the
industry and promote the overall development of the
industry in the region.
Urban homes transformation
The Ministry of Housing and Urban-Rural Development
and the Ministry of Finance recently deployed resources to
accelerate the implementation of policy measures for the
transformation of urban areas and promote the
implementation of projects as soon as possible.
The scope of policy support for the renovation of homes
and infrastructure in urban areas has been expanded from
the initial 35 megacities and large cities with a permanent
urban population of more than 3 million to nearly 300
cities at the prefecture level and above.
The policy requires that all localities should implement
fiscal, tax, land and financial supporting policies for the
transformation of poor urban areas and formulate
compensation plans. Work will be undertaken to safeguard
the legitimate rights and interests of the population and
promote the implementation of various supporting
policies.
The aim is to release the huge potential of China's new-
type urbanisation and form new economic growth points.
It has been reported that the expansion of the urban area
transformation will also drive the increase in the demand
for wood-based panels.
Decline in log and sawnwood imports from EU
According to China Customs log and sawnwood imports
declined sharply between January to September 2024.
China’s log imports from EU declined 37% to 3.616
million cubic metres between January to September 2024.
Log imports from Germany, Poland, France, Denmark and
the Czech Rep. fell fastest.
In contrast, China’s log imports from Lativia and Slovakia
rose 19% and 38% respectively.
China’s sawnwood imports from EU member states
declined 22% to 1.788 million cubic metres between
January and September 2024.
China’s sawnwood imports from the top shippers in the
EU, Finland, Germany and Sweden fell sharply resulting
in the overall decrease in total sawnwood imports from the
EU.
In contrast, China’s log imports from Romania rose 10%
between January and September 2024.
It is worth noting that China’s log imports from the US
and Canada rose 4% and 24% respectively between
January and September 2024 which offset the decline in
log imports from EU member states.
Since the outbreak of the conflict between Russia and
Ukraine timber exports from many European member
states have been affected.
Declining demand for timber in China is another factor
that has led to the decline in imports. There has also been a
reduction of domestic timber production in the EU,
notably Germany.
Surge in sawn softwood imports from US
China Customs data shows sawn softwood imports from
the US surged 43% to 162,400 cubic metres between
January to September 2024.
China imports a lot of pine sawnwood from the United
States. China’s pine, douglas fir, hemlock and spruce
sawnwood imports surged between January and
September 2024. However, China’s sawn hardwood
imports from the US fell 15% to 737,300 cubic metres
between January to September 2024. The total volume of
China’s sawnwood imports from the US dropped 8% to
899,700 cubic metres over the same period of 2023.
Rise in tropical sawnwood imports
Between January and September 2024 China’s tropical
sawnwood imports were 5.759 million cubic metres
valued at US$1.669 million, up 12% in volume and 15%
in value and accounted for about 28% of the national total.
The average CIF prices for tropical sawnwood grew 3% to
US$290 per cubic metre over the same period of 2023.
Thailand was the largest tropical sawnwood supplier to
China in the nine months to September 2024. 67% of
China’s tropical sawnwood imports are shipped from
Thailand. China’s tropical sawnwood imports from
Thailand between January to September rose 16% to 3.832
million cubic metres valued at US$968 million, up 21% in
value over the same period of 2023. The average CIF price
for tropical sawnwood imports from Thailand rose 5% to
US$253 per cubic metre over the same period of 2023.
China’s tropical sawnwood imports from Gabon rose 38%.
In addition, China’s tropical sawnwood imports from
Myanmar, Vietnam, Malaysia and Cameroon rose.
In contrast, China’s tropical sawnwood imports from the
Philippines, alone among the top suppliers, fell 19% over
the same period of 2023.
October Global Timber Index (GTI) China Report
The Global Timber Index (GTI) Report for October 2024
from the Global Green Supply Chain initiative (GGSC)
revealed the Chinese timber market was showing signs of
a recovery as the GTI index for the country registered
50.9%, above the critical value (50%) for the second
consecutive month.
With the start of the traditional peak season for China's
wood products sector an uptick in both production and
new orders has been observed. In contrast, demand signals
reported by some other countries were still in decline. The
GTI indices for the Republic of the Congo (48.1%), Ghana
(48.0%), Thailand (44.2%), Brazil (43.2%), Gabon
(35.4%), Mexico (33.9%) and Malaysia (22.8%) were all
well below the critical value of 50% indicating that in
these countries the overall business prosperity of GTI
participating enterprises shrank from the previous month.
However, in the African countries (Gabon, Ghana, and the
Republic of the Congo) the previous contraction in the
timber sector eased in October and it's worth noting that in
the Republic of the Congo the timber market was showing
signs of stabilisation on both supply and demand sides.
GTI China
On 25 October, the China Securities Regulatory
Commission approved the registration of log futures and
options on the Dalian Commodity Exchange. Many
industry insiders said that the launch of log futures is of
great significance as it can provide the market with
authentic, effective, continuous and authoritative prices
serving as an important reference for import and
processing enterprises.
It is worth noting that since July the unit price of imported
logs declined for three consecutive months.
On 11 October, the European Commission announced that
it decided to initiate an anti-dumping proceeding
concerning hardwood plywood originating in China.
In October the GTI-China index registered 50.9%, a
decrease of 3.3 percentage points from the previous month
and was above the critical value (50%) for 2 consecutive
months indicating that the business prosperity of the
timber enterprises represented by the GTI-China index
expanded from the previous month.
In October China's timber sector maintained an upward
momentum and an uptick in both production and new
orders were observed. As for the eleven sub-indexes, five
indexes (production, new orders, purchase quantity,
inventory of main raw materials and delivery time) were
above the critical value of 50%, the export orders index
was at the critical value, while the remaining five indices
(existing orders, inventory of finished products, import,
purchase price, and employees) were all below the critical
value.
Compared to the previous month, the indices for existing
orders, purchase price, inventory of main raw materials,
and employees increased by 2.5-9.5 percentage points and
the indices for production, new orders, export orders,
inventory of finished products, purchase quantity, import,
and delivery time declined by 1.6-8.1 percentage points.
Through the eyes of industry
The latest GTI report lists the challenges identified by the private
sector in China.
See: https://www.itto-
ggsc.org/static/upload/file/20241120/1732064596197451.pdf
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