US Dollar Exchange Rates of 31th October 2008
China Yuan 6.8382
Report from China
China hikes export tariff rebates on some commodities
Recently, the Ministry of Finance and State
Administration of Taxation jointly issued a notice on
export tax rebate rates for some commodities. The notice
states that from 1 November 2008, China will increase
export tax rebate rates on commodities involving intensive
labor, high levels of technology and high value-added
production. The new rates apply to a total of 3,486
products, accounting for 26% of goods subject to customs
tariffs. The export tax rebate rate for some furniture will
increase between 11%-13%, up from 9%.
China¡¯s wood products exports plunge amid US
slowdown
China¡¯s wood products trade has fallen dramatically due to
the US economic slowdown and its decreasing demand for
China¡¯s wood products. In the first eight months of 2008,
China¡¯s plywood exports fell 14% to 5.25 million m³ from
the same period in 2007. The proportion of China¡¯s
wooden furniture exports to the US was larger, but
dropped 3% by value to USD1.922 billion over the first
eight months of 2008. According to statistics from China¡¯s
customs agency, plywood exports in August 2008
continued to decline. Plywood exports to the US and Japan
slipped 29% and 15%, respectively, in the same period.
China¡¯s MDF exports have been decreasing since the
beginning of 2008 and dropped 15% in August alone.
MDF exports from Guangdong Province, which had been
showing gains in previous years, fell 48% in August 2008
from August 2007 levels. Wood processing enterprises are
also experiencing financial declines as a result of falling
outputs of wood products.
Timber imports from Russia through Manzhouli Port
shrink 30%
According to statistics from Manzhouli Customs, timber
imports from Russia through Manzhouli Port dropped 30%
by volume to 6 million m³ over the first three quarters of
2008. Timber imports were valued at USD900 million.
Prices for Russian logs and sawnwood have been high,
with average monthly prices both for logs and sawnwood
exceeding 20% from the previous year¡¯s levels. The main
reason for the decreasing imports were high prices for
imported logs, as a result of Russia¡¯s newly imposed
tariffs on logs in late 2007. Additionally, since the global
economy has been slowing, China¡¯s wood products
exports have begun to decline, especially for furniture and
plywood exports. At the domestic level, demand for wood
products has also weakened due to the slump in China¡¯s
real estate industry.
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