US Dollar Exchange Rates of
10th January 2016
China Yuan 6.5713
Report from China
Signs of recovery in house prices
Compared to October last year November 2015 new home
prices in 70 medium and large-sized cities declined in 27
cities but remained unchanged in all others. For November
2015 the month-on-month change was positive. The
November data for Chinese house prices can be found in a
press release from the National Bureau of Statistics at:
http://www.stats.gov.cn/english/PressRelease/201512/t20151221
_1293029.html
Prices for second-hand residential buildings fell in a
minority of the cities surveyed but rose as much as 2% in
some others.
The improvement in house prices came as a surprise to
many but were greeted as a sign that there could be a
recovery beginning in a sector whose performance mirrors
the overall economy.
The housing market is a closely watch indicator for the
Chinese economy as it accounts for around 15% of GDP
and trends in housing impact many wood product
manufacturers.
Structure of forest industry has changed
According to the State Forestry Administration, the total
output value of China¡¯s forestry industry output in 2015
was RMB5.81 trillion just over 2.5 times higher than in
2010. The value of international trade in wood products
trade was US$140 billion some 1.5 times higher than that
in 2010.
China¡¯s forestry industry has developed significantly since
2010. Greater attention was given to environmental issues
and ¡®green¡¯ production and trade and there were
developments in the forest economy, forest tourism, and
non-wood forest product development. Over the past 10
years the sector has seen a sharp rise in e-commerce and
marketing.
Over the 10 years of the Twelfth Plan the structure of
forest industry has gradually changed and the proportion
of primary, secondary and tertiary forestry industries now
reflect a mix of 33:51:16 (2015) from a proportion of
39:52:9 in 2010.
Distribution and trade in ¡®redwoods¡¯
In China¡¯s national standard of ¡®redwood¡¯ (GB18107-
2000) 5 genera, 8 categories and 33 species are recorded.
Five species are distributed in China namely the native
scented rosewood, black rosewood and kamagony and two
species, Siamese senna and Bupadauk which have been
introduced.
The distribution of ¡®redwoods¡¯ in China:
Scented rosewood (Dalbergia odorifera T. Chen)
Hainan
Black rosewood (Dalbergia fusca pierre) Yunnan
Kamagony (Diospyros philippensis Gurke)
Taiwan P.o.C
Siamese senna (Cassia siamea Lam.) Yuannan,
Guangdong
Burmacoast padauk (Pterocarpus indicus Willd)
Guangdong, Guangxi, Hainan and Yunnan
Scented rosewood is endemic to China¡¯s Hainan province
and is categorised as a national protected plant. It is
mainly distributed in the west, southwest and south of
Hainan province. Currently the introduction and
cultivation of scented rosewood is going ahead in Hainan,
Guangdong and Guangxi provinces.
Large-scale cultivation of scented rosewood in Hainan
province has developed rapidly.
Black rosewood is also a protected plant and is mainly
distributed in Xishuanbanna and Simao in Yunnan
province there are also reports of scattered occurrence in
Luchuan county and Yuanjiang county of Yunnan
province. Kamagony is mainly distributed in Taiwan
P.o.C.
Siamese senna and Burmacoast padauk has been
introduced and cultivated in Yunnan, Guangdong,
Guangxi, Hainan, Fujian and in Taiwan P.o.C..
Trade in ¡®redwoods¡¯ has declined in recent years
There are about 11,000 ¡®redwood¡¯ processing enterprises
in China with 4,000 being in Fujian province, 2,000 in
Zhejiang province, 1,900 in Jiangsu province, 1,300 in
Guangdong province, 1,000 enterprises in Beijing and 800
enterprises in Hebei province.
Although prices for ¡®redwoods¡¯ are high there is little
interest in commercial platations as growth rates are very
slow and rotations very long. The vast majority of China¡¯s
¡®redwood¡¯ is imported but the trade in ¡®redwoods¡¯ has
declined in recent years.
According to the Chinese ¡®Redwood¡¯ Committee, China¡¯s
¡®redwood¡¯ log imports were 628,300 cubic metres valued
at US$705 million from January to September 2015, a
year on year decline of 57% in volume and 64% in value
compared to a year earlier. The average price for imported
¡®redwood¡¯ logs dropped 15% in the same period.
China¡¯s sawn ¡®redwood¡¯ imports totalled 89,000 cubic
metres in the first nine months of last year and were
valued at US$161 million, a year on year drop of 51% in
volume and 51% in value. However, the average price for
imported sawnwood fell only slightly.
The main sources of China¡¯s ¡®redwoods¡¯ were Africa and
Southeast Asia. In the first nine months of last year 62%
or 395,400 cubic metres was imported from African
countries and were worth US$D289 million, down 3% in
volume and 1% in value.
The balance of 339,200 cubic metres of ¡®redwoods¡¯ were
imported from Southeast Asian countries at a value of
US$557 million, up 4% in volume and 3% in value from
the same period of 2014.
Soaring ¡®redwood¡¯ imports through Taicang Port
According to the data from China¡¯s Customs, ¡®redwood¡¯
imports through Taicang Port in 2015 were 4,340 cubic
metres valued at US$4.72 million, a year on year increase
of over 400% in volume and 600% in value.
The number of species of imported ¡®redwood¡¯ entering
China through Taicang Port last year grew to 10 from 3
and were mainly from South America and Southeast Asia.
The average price of imported ¡®redwood¡¯ through Taicang
Port rose 40% to around US$1,000 per cubic metre.
Middle and high grade ¡®redwood¡¯ dominated imports last
year and the price differential between the different
varieties was considerable ranging from US$520 to
US$2600 per cubic metre.
Furniture manufacturers targeted for VOC emission
control
The government of Dongguan city in Guangdong province
has introduced policies to control air borne pollution from
furniture and other manufacturers as it has recorded the
highest increase in VOC emissions in the Pearl River
Delta.
It is reported that VOC emissions will be gradually
tightened and industries will be encouraged to relocate
away from urban areas.
The local authorities have identified that furniture,
shoemaking, printing, coating and chemical industries are
the main contributors to VOCs and such industries will
again be allowed to open in the dense urban areas. These
industries are the main contributors to air pollution in the
Pearl River Delta region.
Russian sawnwood imports rise
Manzhouli Customs has reported that between January and
November 2015 sawnwood imports through the Port rose
18% to RMB4.66 billion, up 12% from the same period in
2014.
The increase in sawnwood imports through Manzhouli
Port was mainly the result of competitive pricing of
Russian export sawnwood. The 4.28 million cubic metres
of sawnwood handled by the Port were mainly transported
by rail with a small volume arriving by truck.
Traders at Zhangjiagang Port ready to head home for
New Year celebrations
Timber traders at Zhangjiagang Port are busier than in
previous years but operations in the Port have slowed as
traders wind down activity in advance of the New Year in
early February.
Many of the traders are expected to head back to their
family homes for the New Year and analysts say business
at the Port will not get back to full swing until the end of
February. The slow pre-New Year business has driven
down prices for imported timbers.
  
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