US Dollar Exchange Rates of
26th
September 2013
China Yuan 6.1204
Report from China
Steady expansion in real estate investment
China‟s National Statistics Office has released recent data
on the real estate sector. See:
www.stats.gov.cn/english/pressrelease/t20130910_402926
102.htm
Investment in real estate development in the first eight
months of 2013 was up by 19.3 percent year-on-year, but
the pace of investment slowed in August (-1.2% from
July).
Investment in residential buildings was up by 19.2 percent,
accounting for 69% of all real estate development
investment.
In the first eight months of this year real estate investment
in the eastern region stood at 2,949.8 billion yuan, up by
17.4% year-on-year; the central region rate of growth was
up by 19.4% while in the western region investment was
up 24.3%.
The floor space under construction by the real estate
development enterprises in the first eight months stood at
5,855 million square metres, up by 14.4 percent year-onyear.
In the first eight months of this year the land area
purchased by the real estate development enterprises fell
9% year-on-year.
August sales of consumer goods rise in August
As a reflection of the improved economic outlook, August
retail sales of consumer goods reached 1,888.6 billion
yuan, up by around 12 percent.
Of the total, retail sales of consumer goods from industrial
enterprises increased 11.5 percent. From January to
August total retail sales of consumer goods reached
14,816.4 billion yuan, up by 12.8 percent year-on-year.
See:http://www.stats.gov.cn/english/pressrelease/t2013091
0_402926091.htm
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Industrial production accelerates
In August 2013, the total value added by surveyed
industrial enterprises was up by 10.4 percent year-on-year,
0.7 percentage point higher than that in last month. In the
first eight months of this year the total value added by
industrial enterprises was up by 9.5 percent compared to a
year ago.
Analysis of added value by various categories of
enterprises showed that in August, the year-on-year
growth of the state-owned enterprises and state holding
enterprises increased 9.5 percent; growth in collective
enterprises increased 2.9 percent; joint-stock enterprise
growth increased 11.7 percent and growth in enterprises
funded by foreign investors or investors from Hong Kong,
Macao and Taiwan province increased 8.7 percent.
Yuan in league of major traded currencies
The Chinese yuan is now one of the top 10 traded
currencies according to a recent report from the Bank for
International Settlements (BIS), a big jump from the 17th
ranking in 2010.
A press release from the BIS says the US dollar remained
the dominant currency of trade accounting for over 80% of
all trades in April 2013 when the survey was conducted.
See:http://www.bis.org/press/p130905.htm
The euro was the second most traded currency, but its
share fell to 33% in April 2013 from 39% in April 2010.
The turnover of the Japanese yen increased significantly
between the 2010 and 2013 surveys as did that of several
emerging market currencies. The Mexican peso and
Chinese renminbi entered the list of the top 10 most traded
currencies in the recent survey.
The press release says, ¡°The yuan is not yet fully
convertible but Beijing has been gradually loosening
controls. It has started allowing companies to settle
international transactions in yuan, signed currency swap
deals with Pakistan, Thailand South Korea and others and
has worked with financial centres such as London and
Hong Kong to develop international hubs for offshore
trading of the currency.¡±
US ready to impose massive duties on Chinese
plywood
The United States issued its final determination regarding
countervailing (CVD) and antidumping duties (AD)
against hardwood plywood manufactured in China and
imported into the United States.
The US Commerce Department‟s earlier investigation
resulted in imposed a preliminary CVD rate of 22.63%
and a preliminary AD rate of 22.14%. Under US trade law,
preliminary duties can only be collected for an interim
period. As a result the preliminary CVD rate expired on
July 12, 2013.
The preliminary AD rate of 22.14% currently remains in
effect, but is expected to be increased to the level of the
final AD rate of 59.46% and to stay in place until October
30, 2013, approximately the time that the ITC issues their
Injury Ruling.
The US International Trade Administration in the
Department of Commerce said its investigation had
determined that plywood manufactured in China and
exported to the US was sold below cost because of the
substantial subsidies Chinese manufactures received from
the Chinese government.
If this determination is approved at an Injury Ruling it will
affect trade in almost US$700 million worth of timber
exports to the US from China. The US Commerce
Department final determination can be found at:
http://ia.ita.doc.gov/download/factsheets/factsheethardwood-
plywood-china-ad-cvd-final-091713.pdf
Urbanisation to create opportunities in China¡¯s
wooden door market
Chinese analysts have determined that China‟s wooden
door market will evolve because government and
corporate policies are set to change.
Looking ahead analysts suggest that in the next 20 years
urbanisation will be the driving force of development in
China‟s wooden door industry as there could be up to 200
million people moving into urban areas and all will require
housing. For these people their lifestyle and demands will
change and this will create opportunities for the wooden
door industry.
It is expected that most urban expansion will be centred on
the second and third sized categories of cities providing
new opportunities for leading brands in the wooden door
industry.
In China the distinct South-North market structure is
changing. Currently, the distribution pattern of China‟s
wooden door enterprises reflects the old north south
divide. In southern China, major companies are found in
Guangdong, Fujiang, Jiangsu and Zhejiang Provinces,
while in northern China, wooden door companies are
distributed in Beijing, Tianjin, Hebei and Henan.
However, over the ten next years analysts predict that the
current distribution will break down and companies will
extend operations into other parts of China. As the market
expands it is likely that healthy companies in other sectors
will see the opportunities and will enter the wooden door
market.
The companies most likely to respond to the new
opportunities will be those having upstream resource, high
productivity and marketing and competitive skills
providing the foundation for them to become leading
brands in the wooden door market.
Domestic consumers brace for increased flooring
prices
The Chinese domestic market can expect to see a slight
increase in multi-layer wood flooring prices during the
final quarter of this year because manufacturers have to
pay more for raw materials.
For example, prices of wooden flooring made from
Southeast Asian teak and rosewood have increased by
yuan 80 per sq.m in recent months while wooden floors
made from yuan pan dou (Cylidodiscus spp.) and pan long
yan (Pometis spp.) have also increased by 40 Yuan per
sq.m.
Prices for flooring from the top ten brands including Da Zi
Ran and Bei Ya Ke have recently increased by over 60
yuan per sq.m. Another reason for the likely price increase
in multi-layered flooring prices is that prices of other
flooring have been rising.
Price for the 8mm and 12mm laminated floors increase up
until early 2013 and then eased but began increasing again
in June when prices jumped by 5%. Prices of the most
popular brands such as Shengxiang and BeiYa Ke have
moved up even higher than the average 5%.
Consumers in Russian Far-East enjoy Chinese
furniture
Chinese made furniture is very popular in Russia due to its
quality and affordable price. In the first six months of this
year exports by manufacturers in Sui Fen Fen City grew to
US$142 million, a massive increase compared to levels in
2012.
Sui Fen He in Hei Long Jiang Province boarders Russia
and most of the trade with Russia crosses the boarder in
Sui Fen He.
Some 24 percent of China‟s imported timber and 40% of
Russia‟s exported wood products pass through Sui Fen He
making it an important distribution centre for China‟s
timber imports.
In recent years the Far East of Russia has developed fast
which has driven up demand for furniture but there has
been little grow in furniture production on the Russian side
of the border and this is providing the opportunity for
Chinese companies to increase exports.
Chinese made furniture is considered good quality in
Russia and this, along with competitive pricing, has
enabled Chinese enterprises to take a large share of the
Russian market in furniture, flooring and other wood
products.
In the first six months of 2013, although the international
export remained weak, exports from companies in Sui Fen
He increased by 9% year on year and accounted for 23%
of all exports from Hei Long Jiang‟s Province.
 
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