China Wood Market Focus
‐2002.03.30／

China's domestic timber production in 2001 was about 51 million cubic metres. Because of the Natural Forest Protection Program timber production from the natural forests continued to decline, however, since the production of timber from plantations has increased rapidly, the overall production of timber in 2001 was up by 8% over the previous year. According to available statistics, production from the country's plantations in 2001 amounted to 31.55 million cubic metres, or some 62% of the national planned production of timber. The indications are that production from plantations will be even higher this year.

Log Imports from Russia Up in 2001

China's log imports can be divided into 3 categories; temperate coniferous timber, tropical broad-leaved timber and temperate broad-leaved timber. The temperate coniferous timber comes mainly from Russia. In 2001, China imported 16.86 million cubic metres of logs, of which Russia provided 8.77 million cubic metres and this accounted for 52% of the total log import volume. According to local analysts, the main reasons for a rapid increase in Russian logs are as follows:

The imported Russian logs are large-diameter, high quality coniferous timbers mainly from the natural forests. The species are similar to those in China's northeastern region and include such as species Scots pine, Korean pine and Dahurian larch, species that are know in China.

Prices for Russian logs are comparatively low. China has a long border with Russia; the transportation distances are comparatively short. Imports can be readily realized through land transportation. Some Chinese forest industry enterprises are now operating in Russia and are managing to keep costs down. Compared to other countries Russian logs are cheap. For example, in 2001, the average CIF price for Russian logs was only US$58.6 per cubic metre but the coniferous logs from the United States were as high as US$105.7 per cubic metre and from New Zealand US$62.6 per cubic metre.

Russian logs can substitute readily for timbers once harvested from China's northeast, northwest and highland forest areas of the southwest. Harvesting in these areas has been greatly reduced as the Natural Forest Protection Program is implemented.

And finally, the volume of imported Russian hardwood logs ranks first in China's total imports of temperate hardwoods. The main species are Manchurian ash, Mongolian oak and Linden, which are traditionally used timbers in China. These Russian hardwood logs are of large diameter and are of good quality, the prices are lower than tropical hardwoods and lower than temperate hardwoods from Europe and North America.

Beech Imports Down

According to customs data the total volume beech log imports in 2001 was 634,000 cubic metres, a reduction of 39.3% on 2000 (883,000 cubic meters). Beech logs are still coming from Germany, France and some other European countries of which the amount from Germany was 392,000 cubic metres or around 62% of total imports. France supplied 143,000 cubic metres (23%). At the same time, imports of beech sawntimber fell from 522,000 cubic metres in 2000 to 403,000 cubic metres in 2001, a reduction of about 23%.

Guangxi's fast Growing High Yield Plantations

Guangxi Zhuang Autonomous Region, situated in the south of China has good natural condition and abundant land resources for afforestation and it is one of the most important areas identified for China's future development of commercial plantations.

In recent years, Guangxi has taken on the development of fast-growing and high-yielding plantations. This is part of its approach to the restructuring of the agricultural economy. The forest industries will be developed as new economic growth point with the aim of accelerating the development of the region's fast-growing and high-yielding plantations.

The total area of Guangxi's plantations now stands at 600,000 ha. In 2001 some 86,700 ha was established and in 2002 a further 146,700 ha will be established. According to Guangxi's forestry plan, the region's capacity for wood pulp by the end of 2005 will reach to 1.16 million tons and the resources for wood-based panel will reach to 1.1 million cubic metres.

Guangxi is one of China's key provinces (autonomous regions) for the creation of fast-growing and high-yielding plantations; the main species planted are Eucalyptus, Acacia, Castanopsis hystrix, teak, Betula and. The region has more than 1,400 forest products industries with an annual timber consumption of some 3 million cubic metres.

For information on China's forestry try:
http://www.forestry.ac.cn/