US Dollar Exchange Rates of
25th
April
2021
China Yuan 6.479
Report from China
Rise plywood production capacity
There were more than 15,200 plywood manufacturers with
a total annual production capacity of 256 million cubic
metres in China at the end of 2020 distributed in 26
provinces (municipalities and autonomous regions). This
number of plants was up 12% on 2019.
The average production capacity of the enterprise is about
17,000 cubic metres per year. More than 1,750 plywood
manufacturers stopped operations or had licenses
cancelled by the end of 2020.
There are 7 provinces and 4 prefectures and cities in China
with annual plywood production capacity exceeding 10
million cubic metres.
There were more than 2,050 plywood production
enterprises under construction in China at the beginning of
2021 with a total production capacity of about 24.4 million
cubic metres per year.
Except for Beijing, Shanghai, Tianjin, Chongqing,
Qinghai Province and Tibet Autonomous Region there
were plywood production enterprises under construction in
all other 25 provinces (autonomous regions). It is expected
that the total production capacity of plywood products in
China will exceed 270 million cubic metres per year by
the end of 2021.
First block chain-based timber business trial
Block chain technology has been introduced to try to
establish a national first block chain-based timber business
service platform at Rizhao Port in Shandong Province
which has broken the traditional cargo handling model to
improve transparency and traceability. This initiative
could bring cost savings to customers.
After the upstream tradersĦħ timber ships arrive at the port
the blockchain timber business service platform will
immediately log on to release the basic information such
as the shipĦħs name, tree species, grade, quantity, freight
yard, contact information, etc.
The downstream buyer/customers can obtain the
information directly from the platform breaking the
information barrier and realising the transformation of the
single market to a diversified market for downstream
customers.
Decline in the sales of wood and bamboo flooring
According to the China National Forest Products Industry
Association (CNFPIA), sales by ChinaĦħs wood and
bamboo floors enterprises with annual output value of
more than RMB20 million was 411.7 million square
metres, a year on year decline of 3%.
From the point of view of sales of subdivided
products,
affected by the epidemic in 2020 the market for domestic
interior building materials has suffered in different
degrees. Sales of solid composite flooring alone rose 9%,
however, sales of laminate, solid wood and bamboo
flooring in 2020 fell 8%, 12% and 5% respectively.
In general, the domestic wood flooring industry has
witnessed the end of a period of high growth and has now
adapted to a more moderate growth.
The sales area of residential buildings in China in 2019 is
1.5 billion square metres, an increase of 61% compared
with 2010, however, sales by wooden flooring enterprises
with annual output value of more than RMB20 million
only increased by 6% during this period.
Decline in the value of ChinaĦħs wood flooring trade
According to China Customs the value of wood flooring
exports and imports in 2020 fell 19% and 8% to US$120
million and US$78 million respectively.
Exporting has been becoming difficult for ChinaĦħs wood
flooring manufacturers because of the impact of China-US
trade friction and the weak recovery of the world
economy, the slowing down economic development of the
EU and in many emerging countries and continuous
depreciation of the euro and other currencies.
In addition, the US has increased anti-dumping tariff rates
on wood composite floors and tightened limits on
formaldehyde release on imported laminate floors.
The value of ChinaĦħs wood flooring exports dropped
from
US$274 million to US$120 million between 2015 to 2020
and the pace of decline accelerated after the US announced
an increase of the anti-dumping rate of wood composite
floors in 2015.
See:
https://www.chinafloor.cn/news/diban/news-484666.htm
China/EU private sector trade centre in Changzhou
City
A new facility to promote China/EU trade has been
launched in a centre in the International Cooperation
Industrial Park in TianĦħning District of Changzhou City in
Jiangsu province.
This initiative launched by the Latvian Chamber of
Commerce and Industry (LCCI), the Estonian Chamber of
Commerce and Industry and Satakunta University of
Applied Sciences and supported by the European Union
Regional Development Fund and Interreg Central Baltic
Programme 2014-2020 aims at promoting trade between
small and medium-sized wood enterprises in China and
European countries for exports of wooden houses, doors
and windows and furniture.
Project partners believe that companies from the Central
Baltic Region have a high potential for cooperation with
China and that Latvian, Estonian and Finnish companies
can be good trading partners with companies in China.
See:
http://www.changzhou.gov.cn/ns_news/371156456029277
and
https://caijing.chinadaily.com.cn/a/202104/12/WS6073f561a3101e7ce9748b28.html
 
GGSC-CN indices For March
In March 2021 ChinaĦħs PMI index rose to 51.9% driven
by the domestic recovery and a rise in domestic and
foreign demand. Given the recovery of the macro
environment the wood production and manufacturing
industries had a strong recovery momentum in March. The
rapid growth of domestic and foreign orders and active
production led to a recovery of employment and prompted
a rise in raw material prices.
The GGSC-CN comprehensive index for March registered
71.9% (70.7% for last March and 63.7% for March 2019),
an increase of 34.4% from the previous month. It shows
that the operation of the superior forest products
enterprises represented by GGSC-CN index expanded
from last month. See Figure below.
Challenges
The price of raw materials has increased by 20%.
Due to the impact of COVID-19, raw materials rose too
much and some materials could not be supplied in time.
Some products in short supply.
Birch, Black Walnut Board, Teak Board, Ebony, Pine
Core Board, Tang, Okan, Oak, Red Oak, Locust, Ebony,
Pine Core Board, Longan, Glue, Paint, PE Film, Carton,
EPE Decorative,Base Paper, Melamine, Formaldehyde
andmethanol prices have risen
The GGSC-CN index in March2021
Four out of five sub-indexes of GGSC-CN index rose and
one fell. The production index registered 81.3%, an
increase of 48% from the previous month. It shows that
the production of superior forest products enterprises
represented by GGSC CN is better than that of last month.
The new order index registered 87.5%, an increase of
62.5% from the previous month reflecting the ability of
enterprises to obtain orders is much better than that of last
month. Among them the new export order index reflecting
international trade registered 68.8%, an increase of 21%
from the previous month showing that orders from abroad
in March 2021 increased from a month earlier.
The main raw material inventory index registered 62.5%,
an increase of 21% from the previous month. It shows that
the raw material inventory of the superior forest products
enterprises increased in March from the previous month.
The employment index registered 62.5%, an increase of
21% from the previous month. It shows that the
employment of the superior forest products enterprises is
increased in March from last month.
The supplier delivery time index was 43.8%, a decrease of
6.3% from the previous month. It indicates that the supply
time of raw material suppliers of the superior forest
product enterprises is slower than that of last month.
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