US
Dollar Exchange Rates of 13th April
2007
China Yuan
7.722
Report from China
China¡¯s veneer industry expands rapidly
China¡¯s veneer industry has been developing rapidly in the last decade. Veneer is widely used in furniture face,
wooden composite flooring, plywood face and door face. According to preliminary statistics, there are about 1,000
veneer production and marketing companies in China. The output of decorative veneer alone has reached 100 million
m2 a year. Veneer distribution centers are mainly located in Dongguan Xingye Timber Market, Jiaye Veneer
Market, Shanghai Furen Wood Products Wholesale Market and Beijing Dongba Timber Market.
World class furniture brands make inroads in China
World class furniture brands from USA, Italy and Germany began to swarm into China¡¯s market after the
country cut furniture import tariffs to zero. The USA, which is expected to import $10
billion a year of furniture from China, has established many franchised stores in
China. Italy has set up brand concept stores in Shanghai, Beijing, Shenzhen and Wenzhou. Italian firms have
direct marketing shops in Shanghai, featuring Milan brand furniture. German furniture companies have established
their franchised stores in Shanghai, Beijing, Tianjin, Xi¡¯an, Suzhou and
Wenzhou. These world class furniture companies enter China by establishing franchised stores,
general agencies or mergers.
Logs Imports through Zhangjiagang Port jump in 2007
Logs imports through Zhangjiagang Port in Jiangsu Province have increased considerably in
2007. According to port statistics, log imports in the first quarter of the year
reached 1.01 million m3 ($260 million), up 72% (up 94% in value) from 2006. Logs came from 30 countries, mainly
from Gabon (583,000 m3), PNG and Solomon Isl. (together 341,000 m3). South American logs came mainly
from Guyana and Suriname.
Taicang prepares for upcoming hike in Russian log tariffs
Taicang Port is the largest ocean shipping port in China for Russian timber, with annual timber
imports of over 1 million m3. Jiangsu Taicang Inspection and Quarantine Bureau urged local
wood processing companies to prepare in advance to the upcoming tariff increase on Russian
logs. The bureau gave the following suggestions to wood processing enterprises.
Enterprises planning to invest in wood processing
projects in Russia should conduct market research and project analysis before investment.
Wood processing enterprises depending on Russian raw
materials should carry out cost-benefit analysis based on the new tariffs and should seek new stable raw materials
sources.
Wood processors should establish joint ventures with
Russian counterparts, ship primary processing wood products back to China for further processing or sell
them directly in order to avoid Russian log tariffs.
Chinese wood processors with significant technological
capability should conduct downstream processing in Russia and export directly to Japan, South Korea and
European countries.
Hainan rubber furniture sees exports surge
Despite challenges such as increasing raw material costs, US dollar depreciation and higher transportation costs,
Hainan Land Reclamation Rubberwood Co., Ltd reported annual sales in excess of 102.71 million yuan in 2006
($13.2 million). Out of the total, $12.79 million corresponded to exports, up 32% from 2005. The company
exports furniture mainly to the USA, Canada, Europe and Middle East.
Soaring furniture exports through Tianjin Port
According to Tianjin Customs statistics, furniture exports through Tianjin Port grew 36.8% to $150 million. Most of
the furniture exports went to the US market.
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