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China Wood Products Prices

16-31th May 2009


US Dollar Exchange Rates of  29th May. 2009
China Yuan 6.8282
Report from China
 

China decentralizes approval of wood-based panel production permits
Recently, the General Administration of Quality
Supervision, Inspection and Quarantine of China issued a
notice which assigns the approval of permit certificates for
wood-based panel production (including 7 kinds of
products such as plywood, particleboard, OSB, MDF,
decorative veneer overlaid panel, resin impregnated paper
overlaid panel, block board) to provincial quality and
technical supervision departments as of 1 May 2009. The
notice further clarifies administrative approval rights for
production permits and underlines the local advantages of
permit certificate approval. Implementation of the new
measures will simplify approval procedures in the
production of wood-based panels and promote enterprise
development.

China to raise standards on wooden furniture
According to the China Green Times, China will
implement new national standards on wooden furniture as
of 1 May 2009. The measures are expected to harmonize
national standards for wooden furniture. Disputes between
enterprises and consumers will be settled according to the
standard on which the law is based.

Under the standards, wooden furniture is classified as
wooden furniture, panel furniture or synthetic furniture.
Wooden furniture is divided into three major types: full
solid wood furniture; solid wood furniture; and veneer
overlaid wooden furniture. The three major types of
wooden furniture are differentiated by the proportion of
basic wooden materials used. In addition, wood-based
panel furniture has four separate classifications: fiberboard
furniture; particleboard furniture; blockboard furniture;
and multilayer plywood furniture. Synthetic furniture is
made of timber mixed with wood-based panel.

Forum promotes tri-layer solid composite flooring
A forum on the national extension of tri-layer solid
composite flooring and industrial development was held
on 26 April 2009 in Beijing, China and was jointly
sponsored by the Flooring Committee under the China
National Forest Products Industry Association and the
Institute of the Timber Industry of the Chinese Academy
of Forestry. The forum was an essential part of promoting
the development of China¡¯s wooden flooring industry and
boosting consumer consumption of Chinese flooring.
More than 100 participants took part in the forum, from
scientific and research, forestry production and
development, and the building materials, real estate,
decoration and design fields.

There are 100 factories manufacturing tri-layer flooring in
China with annual sales of 25 million square meters, 80%
of which are exported to European countries and the US.
Tri-layer solid composite flooring originated in Europe
and is one of most popular flooring types sold in Europe.
However, tri-layer solid composite flooring is much less
recognizable and in demand in the domestic market.

The growth rates of flooring output and sales volume have
been 20% annually. The sales volume of flooring in 2007
was 361 million m². Of the total, the sales volume of
impregnated paper for laminate flooring amounted to 220
million m², solid composite flooring 75 million m²
(including tri-layer and multilayer solid composite
flooring), wood flooring 44 million m² and bamboo
flooring 20 million m². The sales volume of flooring in
2008 was 344 million m², falling slightly during the onset
of the global financial crisis. The sales volume of solid
composite flooring reached 78 million m² in 2008.

Kenya and Shandong Province officials reach
agreement on timber and wildlife exchange

A delegation from Shandong¡¯s provincial government
recently met with Kenya¡¯s Ministry of Forestry and
Wildlife officials. The two parties reached an agreement
on timber processing and wildlife exchange.

According to informal agreements between the two
government representatives, the Shandong provincial
government will establish mills to utilize timber and
bamboo as raw materials in Kenya. The Province plans to
invest RMB80 million yuan to set up a plywood mill with
an annual output capacity of 50,000 m³, RMB50 million
yuan to establish a processing enterprise with an annual
output of 1.6 million sets of redwood furniture, and a pulp
and paper mill. According to international timber trading
rules and two countries¡¯ laws, 50,000 m³ of redwood will
be imported by Shandong provincial enterprises annually.
Training will be provided to Kenya¡¯s technical
professionals by Shandong technical specialists. The
Shandong government will also help Kenya buy bamboo
products and manufacturing equipment.

Both sides also agreed to explore the exchange of native
wildlife to meet the country¡¯s scientific research and
education needs in Kenya¡¯s qualified zoos and wildlife
parks.

 

Abbreviations

LM        Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS         Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR            French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF         Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot               Price has moved up or down

Source: ITTO'  Tropical Timber Market Report

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