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China Wood Products Prices

01-15th September 2009


US Dollar Exchange Rates of  15th September. 2009
China Yuan 6.8289
Report from China
 



Chinese forest industry shows gains in first half
According to the State Forestry Administration, the
performance of China¡¯s forest industry showed gains
during the first half of 2009. Statistical data showed total
output value of forestry industry amounted to RMB726.6
billion yuan in the first six months, which is roughly the
same as last year. The output of timber and wood-based
panels reached 29.5 million m³ and 59.57 million m³
respectively. The paper making industry also showed signs
of recovery. The output of machine-made paper amounted
to 43.10 million tons in the first six months and reached a
peak of 8.52 million tons in June alone. According to
professionals, these achievements resulted mainly from the
following measures taken by governments:

Firstly, the guidance and support for industry development
strengthened. For instance, for products produced with
timber residues, the policy of refunding upon payment of
VAT has been established; export tax rebate rates for 63
forest products have been increased. Secondly, local
authorities sped up incentives to encourage development
of industrial structures. Some new industries, such as
biomass energy, biological medicine production, forest
food, forest tourism and biomass material, continued to
increase. Thirdly, the import and export of major forest
products showed signs of a gradual increase.

New guidelines suggests how to manage international forest resources
The Guideline of sustainable management and use of
overseas forest for Chinese enterprises was jointly issued
recently by the State Forestry Administration and the
Ministry of Commerce. According to the Guidelines,
Chinese enterprises must strictly conduct their business
within the approved site, area, quantity, variety and scope
of business and shall not exceed the scope of business.
Such activities as project contraction, labor services
cooperation and purchase of forest products are expected
to be in accordance with the related bilateral laws and
regulations. Wood processing projects and timber
transportation should be in line with industry policies of
both China and the host country. The system of public
notification and consultation before logging should be
established.

The Guidelines emphasizes that Chinese enterprises must
fully consider the interests of local people when forest
management activities are carried out, and do not threaten
and weaken the local people¡¯s rights of ownership and use
of forest resources. The Chinese enterprises are also
requested to participate in local activities of public welfare
and provide local people with the opportunities of
employment and training.

Log imports through Suifenhe Port show mixed results in first half
The imports of logs were down and sawnwood imports
were up through Suifenhe Port of Heilongjiang Province
in the first half of 2009. According to Suifenhe Entry-Exit
Inspection and Quarantine Bureau, 2.33 million m³ of logs
valued at USD282.15 million were imported from January
to June of 2009, down 38% and 46% respectively from
last year; 235,000 m³ of wood panels valued at USD50.04
million were imported, rose 67%, 71% and 67%
respectively over the last year.

Taicang Ports claims indemnity of USD6.5 million from
exporters

Among 800,000 m³ of imported timber inspected by
Taicang Port Entry-Exit Inspection and Quarantine Bureau
in the first half of 2009, it was found that there was an
underestimated volume of 12,112 m³. The Bureau issued
fines of USD6.49 million on foreign exporters, up 34%
over the last year. The timber of concern involved wood
panels from Canada, Pinus radiata logs from Australia
and Pinus pinaster logs from France.

Furniture exports through Guangdong Province rise
According to statistics from Guangzhou Customs, the
value of exports of furniture and parts (including nonwood
furniture) was USD4.4 billion in Guangdong
Province in the first half of 2009, down 12% from last
year. Of the total, the exports to US and EU were USD
1.52 billion and USD1.06 billion, respectively, down 26%
and 11% respectively. To cope with this difficult situation,
the Guangdong furniture industry has actively explored
ASEAN markets and the export value to these areas
continued to rise. In the first half of 2009 the value of its
furniture exports to ASEAN was USD440 million.
Guangdong furniture is exported to all ASEAN countries
except Laos. The value of furniture exports to Malaysia
was over USD200 million, to Singapore was USD150
million, more than two times their worth in the first half of
2008. According to experts, ASEAN countries have
become one of the largest markets for Guangdong
furniture.

Sino-Russia Cooperation discussed in Harbin
Affected by the global financial crisis as well as increased
Russian export tariffs, China¡¯s logs imports from Russia in
2008 declined by 26%. Under this circumstance, the two
countries discussed potential cooperation in wood
downstream processing during the 20th Sino-Russia
Economic Cooperation and Trade Fair organized on 15
June 2009 in Harbin. The representatives from
governments and enterprises of the two countries also
discussed joint exploitation of forest resources in other
areas.

 

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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