US Dollar Exchange Rates of 14th Sep 2010
China Yuan 6.7440
Report from China
ASEAN countries are the major timber product trade partners for China
Statistics from China Customs show that the value of the China-ASEAN timber product trade reached US$9,380 million in the first half of 2010. Of the total, China¡¯s imports were US$6,850 million and exports stood at US$2,530 million, implying a trade deficit of US$4,320.
In the first half year period, the member countries of the Association of Southeast Asian Nations (ASEAN) were the main timber product trade partners for China accounting for some 21% of the total value of timber product trade with China, followed by the US with 15% (US$6,610 million), EU with 13% (US$6,050 million) and Japan with 6% (US$2,480 million).
In terms of growth, the value of trade with ASEAN grew 57%, with the US 42%, EU 34% and Japan 32% compared to the first half of 2009.
China¡¯s imports of hardwoods jumped in first half of 2010
According to statistics from China Customs, China¡¯s softwood log imports were some 11 million cu.m in the first half of 2010, up 17% over the same period in 2009. Hardwood log imports came to 5.3 million cu.m, up 47%. Of the total hardwood logs imports, tropical logs were 4.4 million cu.m, growing 56% in the first half of 2010 from the same period in 2009.
During the first half year period, China imported a total of 4 million cu.m of softwood sawnwood, up 48% over the same period in 2009. Hardwood sawnwood imports totalled 2.5 million cu.m, an increase of 81%.
Of the total imports of logs and sawnwood, softwoods accounted for over 70% and were mainly used by the domestic construction sector. Hardwood imports accounted for less than 30% of the total log and sawnwood imports and were used mainly for furniture, interior decoration, home improvement materials and in plywood production for the domestic and international markets.
The sharp increase in hardwood timber imports was the result of considerable growth in export demand. Statistics from China Customs show that in the first half of 2010, the value of China wooden furniture exports were worth US$7.384 billion, up 46% over the same period last year. The value of other wooden product exports reached US$1.782 billion increasing 28% from the last year. Plywood exports came to US$1.583 billion, up 44%.
Imports of Pinus radiata experienced the sharpest increase
In the first half of 2010, China¡¯s imports of logs and sawnwood of radiata pine maintained a strong growth reaching 3.4 million cu.m, up 47% over last year and were valued at US$487 million, up 111%. The average unit price for these logs increased by 58% to US$131.7 per cu.m and for sawnwood 4% to US$236.6 per cu. m.
The main reason leading to the sharp increase in radiata pine timber imports is the price. Compared to Russian timber, the price development of New Zealand timber is moderate. Another reason is that radiata pine has a wide range of applications and the timber is becoming more and more popular among Chinese consumers.
From a long-term point of view, radiata pine will probably become the main imported timber species in Chinese market, say analysts.
Guangdong furniture sales grow
According to the Guangdong Forestry Products Industry Association, the total output value of the forest industry in Guangdong reached RMB118 billion in the first half of 2010 showing a 7.8% increase over the same period last year. Of the total, furniture sales were valued at RMB88 billion, up 23% compared to last year and the value of furniture exports stood at US$6144 million, 39% more than in the first half of 2009.
The forest product industry in Guangdong was hard hit by the international economic crisis in 2008-09 but started to recover in 2009. The forest industry output value in this province was estimated at RMB220 billion in 2009, ranking first in the country.
In the first half of 2010, the value of furniture exports from Guangdong reached US$6.1 million, accounting for 39% of the national total. In the same period, Guangdong furniture sales in the domestic market were worth RMB46.6 billion, up 15% over the same period in 2009.
Economic and Trade Cooperation Zone between China and Russia
The Ussuriysk Economic and Trade Cooperation Zone, one of eight Chinese economic zones established outside of China, was built jointly by China and Russia in 2006.
To date, 17 enterprises including shoe factories, wood processing mills and package industries have started to operate in the region. These enterprises realised a total of US$100 million of sales and US$20 million of profits in 2009.
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