US Dollar Exchange Rates of
10th December
2019
China Yuan 6.9729
Report from China
New quarantine regulations for wood-based panels
In order to promote the development of China¡¯s woodbased
panel sector the State Forestry and Grassland
Administration (SFA) has amended the scope of
quarantine regulations for wood-based panels. The
amended regulations will be effective as of 1 January
2020.
See:
http://www.forestry.gov.cn/main/201/20191126/091143620447593.html
The new regulations take account of the various
production technologies for wood-based panels. It has
been decided that some types of wood-based panels where
the manufacturing process involves hot pressing
quarantine regulations will be suspended. The specific
categories are listed in Annex 1 in the above mentioned
document and include particleboard, fibreboard plywood,
decorative veneer over a wood-based panel base.
All provincial forest authorities are required to improve
and innovate management methods and to strictly enforce
the quarantine regulations.
China¡¯s timber processing industry
According to the local press, the China Green Times, the
output value of China¡¯s timber processing and wood
products industries in 2018 was RMB1.3 trillion,
accounting for 17% of the total output value of China
forestry sector.
Wood-based panel industry
There are about 10,000 wood-based panel enterprises with
3 million direct and indirect employees in China. The total
output of the national wood-based panel sector was almost
300 million cubic metres in 2018, a year-on-year increase
of 1.4%. Twenty five provinces in the country have woodbased
panel enterprises of which production the capacity
in seven provinces exceeded 10 million cubic metres.
The wood-based panel sector in China has undergone
transformation and out-dated production methods have
been phase-out. More than 3,000 plywood enterprises have
been closed across the whole country and around 600
fibreboard plants have ceased operation along with over
1,000 particleboard plants. The number of large and
medium-sized wood-based panel enterprises has increased
and the technological base has been strengthened. The
application of new low-toxicity or non-toxic environmentfriendly
adhesives has accelerated and the quality of
output has improved.
Wood flooring industry
There are nearly 3,000 wood flooring enterprises with
around 1 million employees in China. The total output of
wood and bamboo flooring in 2018 was 789 million cubic
metres.
The process of consolidation in the wood flooring industry
has accelerated in recent years with a concentration
towards dominant brand enterprises. The output of the top
ten large-scale enterprises accounts for more than 30% of
the total output of the sector.
More and more wood flooring enterprises regard
innovation as their development strategy and have
invested heavily in R&D to continuously improve their
technological innovation. Chinese wood flooring
enterprises have over than 8,000 patents.
Wooden furniture industry
As the largest wood processing sector there are nearly
80,000 wooden furniture enterprises with 5 million
employees in China. Five major furniture industrial
clusters have been established, the Pearl River Delta,
Yangtze River Delta, Ring Bohai Sea, the Northeast and
the West regions. These account for 90% of the national
furniture production capacity.
The wooden furniture industry is consolidating and
some
of small and medium-sized enterprises have withdrawn
such that the total output and sales by the sector has
dropped.
On the other hand, the custom/tailor made furniture sector
has become a new growth point in the furniture industry to
meet increasing demand for individuality.
This sector has expanded at around 20% annually for
many years. The size of the domestic customised furniture
market was about RMB290 billion in 2018.
Wood door industry
The output of China¡¯s wooden door sector is said to be the
highest in the world and China is also the main wooden
door consumer market. The total output value of the
national wooden door sector was about RMB140 billion in
2018, an increase of 11% over the same period in the
previous year. There are more than 10,000 wooden door
enterprises in China and these are found mainly in the
Pearl River Delta, Yangtze River Delta, Ring Bohai Sea,
Northeast, Southwest and Northwest regions. Growth in
the wooden door sector is slowing and the pace of
consolidation is growing.
Analysts expect production will be further concentrated in
large-scale, mechanised plants. More and more wooden
door enterprises have increase R&D and introduced
automation.
Wooden building sector
Demand for wooden framed buildings is growing and the
wooden building sector is expanding fast especially for the
leisure, agricultural, tourism, real estate and landscape
markets. There have also been developments in the multistory
wooden structures and the public building market.
It has been estimated that the wood structure market will
be around 4.5 million square metres annually over the next
three years. There are around 1,200 wooden structure
enterprises in China found mainly in Eastern China,
Northern China and the Northeast regions. Tourism
development projects, residential buildings and garden
landscaping are the most important three major markets
for wooden structures.
Slowdown in China¡¯s wood products exports
According to China Customs the total value of China¡¯s
wood product exports in 2018 was US$61.6 billion, a year
on year increase of 2%.
The value of wood-based panel exports rose about 7% to
US$6.775 billion. The volume of plywood exports
accounted for 80% of the national total volume of woodbased
panel in 2018. The value of China¡¯s wooden
flooring exports was US45.64 billion and was shipped
mainly to the US and European markets.
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