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China Wood Products Prices

16-30th November 2010

US Dollar Exchange Rates of  2th Dec 2010
China Yuan 6.6614

Report from China 

  Government announces sawnwood export quota for 2011
On 28 October 2010, the Ministry of Commerce of China announced the export quotas for agricultural and industrial products for 2011. Sawnwood export quota will be 260,000 cu.m in 2011. The decree declares that qualified applicants can send their applications for exports to local commercial affairs bureau or directly to the Ministry of Commerce during the period from 1 to 15 November 2010.

SFA Issues Guidelines on Accelerating Forest Certification Work
The State Forestry Administration (SFA) issued Guidelines on Accelerating Forest Certification Work. The development goals of China’s forest certification in the next five to ten years have been identified in the guidelines.

By 2015, the pilot forest certification system will be introduced in state-owned forests. Export-oriented wood product manufacturers will be guided to carry out chain-of-custody certification. New forest certification categories and scopes will be developed. The national forest certification system will be established and international recognition of it will be sought.

By 2020, the Chinese government will encourage enterprises to adopt forest certification in state-owned and collective forests. Forest certification categories and scopes will be further expanded. The national forest certification system will be further improved and the scope of international recognition will be expanded. The implementation of sustainable forest management in China will be further improved.

Panel furniture production base in Changzhou City
The first panel furniture production base in China will be established in Changzhou City of Sichuan Province. The 472 hectares base will be located in the economic development zone of Changzhou City. In Changzhou City, there are already more than 200 furniture manufacturers with an annual production of 2 million pieces of furniture and an annual output value of RMB10 billion. Currently, the furniture sector employs around 60,000 workers in Changzhou City.

The panel furniture production base will be the largest in the West China and it is estimated that the furniture production in Changzhou City will grow to an annual output of RMB100 billion by 2020. The Changzhou City’s government will implement four steps to meet the targeted output:

1) Carry out specialisation and mass production, increase quality and added value of furniture products;
2) Strengthen qualified personnel training and the furniture industry’s operational system and logistics;
3) Implement superior brand strategy and create advantageous enterprises based on that strategy;
4) Establish completely integrated furniture industry chain with research & development, design, production, processing, logistics, exhibitions and marketing.

China’s furniture production is concentrated in Sichuan Province, Guangdong Province, Jiangsu Province and Zhejiang Province. However, Chengdu Mingzhu Furniture Group Co. Ltd (M&Z) in Changzhou City of Sichuan Province has already introduced world class automatic production lines and an internationally advanced quality testing laboratory similar to those in Germany and Italy. The group has also established a research and development centre with universities. The furniture products are sold in domestic markets and also exported to North America, Japan, Australia and the Central Asian countries and regions.

Largest wooden door production line in Asia begins operation
The largest wooden door production line in Asia with an annual output of 700,000 wooden doors has begun operation in Power Dekor. The production line is the first of its kind for mass production of wooden doors in China. The total investment of the production line was RMB200 million and it is the largest high quality wooden door production line in Asia. The production line can produce 2,000 sets of high quality wooden doors per day.

In 2008, Power Dekor began to produce and promote standard wooden doors in the Chinese market. At present, standard wooden doors produced by Power Dekor are marketed through 300 distributors and 500 stores in China. Due to greater recognition and high demand, Power Dekor commenced building the newly established production line in the beginning of 2010.

China is the largest producer and consumer of wooden doors in the world. The total output value of wooden doors in China reached RMB60 billion in 2009. For 2010, the forecast is RMB70 billion in output value with some optimistic projections suggesting over RMB100 billion.

• Wood Market Prices in China (01-15,Nov 2010)

• Wood Market Prices in China (16-31,Oct 2010)

• Wood Market Prices in China (01-15,Oct 2010)

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