US Dollar Exchange Rates of
25th
Sep
2021
China Yuan 6.4667
Report from China
Real estate development and sales growth slows
National investment in real estate development was CNY
9806 billion between January and August 2021, a year-onyear
increase of 10.9% and 15.9% higher than in the same
period in 2019; thus, average growth over the last two
years has been 7.7%. Within this, residential investment
was CNY 7397 billion, an increase of 13%.
The area of land acquisitions by real estate
development
enterprises was 107.3 million m2 in January每August 2021,
a year-on-year decrease of 10.2%; the land transaction
price was CNY 664.7 billion, down by 6.2%, year-onyear.
The sales area of commercial housing was 1142
million
sq.m in January每August, a year-on-year increase of 16%
and 12% higher than in the corresponding period in 2019,
with an average growth of 5.9% over the two-year period.
See:
http://www.stats.gov.cn/english/PressRelease/202109/t20210916_1822206.html
Risk to China＊s real estate market from Evergrande
problems
Until this year, Chinese property was booming. Demand
for real estate in the megacities of Beijing, Shanghai,
Shenzhen and Guangzhou drove prices to among the most
expensive in the world. Until this year, Evergrande,
China＊s second-largest property developer by sales,
invested heavily.
But then came falling property prices in smaller cities and
a series of government measures aimed at cracking down
on excessive borrowing in the real estate sector.
Economists say the potential collapse of Evergrande
could ※be the biggest test that China＊s financial system has
faced in years§.
See:
https://www.abc.net.au/news/2021-09-21/china-propertybust-evergrande/100472190
More background:
https://www.japantimes.co.jp/news/2021/09/17/business/corporate-business/china-evergrande-scenarios/
Tariff exemption extended for US hardwood imports
The Customs Tariff Commission of China＊s State Council
has extended the exclusion period for additional tariffs
imposed on certain commodities imported from the US,
which was due to end on 16 September 2021. Among the
commodities excluded from the additional tariffs are
anticorrosive wood (44039100), North American
hardwood logs (44039960), cherry sawnwood (44079400),
ash sawnwood (44079500) and other North American
hardwood sawnwood (44079930). China will now exempt
these US products from additional tariffs until 16 April
2022.
See:
http://gss.mof.gov.cn/gzdt/zhengcefabu/202109/t20210916_3753336.htm
First wood-fumigation enterprise starts up in Henan
The first enterprise for fumigating wood packaging for
export was established recently in San Men Xia in Henan
province.
Demand for wood packaging has risen in San Men Xia in
recent years in line with the city＊s increasing commodity
exports. There is a growing need to fumigate wood
packaging for export, and the new company will help fill
the gap.
First timber train arrives from Russian Federation in
Xinxiang
The China每Europe Express arrived recently in Xinxiang
from the Russian Federation, carrying about 2500 m3 of
timber worth RMB 3 million. This is the first timber train
from the Russian Federation to Xinxiang, a city in Henan
province, and it marks the beginning of regular timber
shipments on the Xinxiang China每Russian Federation line.
The trip takes about ten days, shaving at least two-thirds
off the previous travel time.
See:
http://www.henan.gov.cn/2021/09-08/2309347.html
Production line for reed-based formaldehyde-free
wood panels set for Yueyang
The first production line of formaldehyde-free wood
panels using reed fibre will be built in Yueyang, Hunan
province, according to the local government there. The
project will use abundant reed resources in the Dongting
Lake District of Yueyang city, opening up a new way to
boost the income of reed farmers, promote local economic
development, help rural revitalization, and develop a
※green§ industry.
See:
http://www.yiyang.gov.cn/yyslyj/1822/1823/content_1443455.html
China每Japan wood seminar held in Nanning
A China每Japan wood seminar was held recently in
Nanning, Guangxi Zhuang Autonomous Region,
sponsored jointly by the China Timber and Wood Products
Distribution Association and the Japan External Trade
Organization.
The aims of the seminar were to increase knowledge
among China＊s wood industrial enterprises of Japanese
timber resources and the prospects for Japanese wood in
China; lay a foundation for increasing timber trade
between China and Japan and thus deepen relationships
among industrial wood enterprises in the two countries;
and jointly plan an improved timber trade.
Japan＊s wood exports to China are booming, jumping from
about ¥1 billion in 2001 to ¥17 billion in 2020. China＊s
log imports from Japan surged from about 15 000 cu.m3 in
2012 to more than 900 000cu.mm3 in 2019.
China imported 671,000 cu.m of logs from Japan in
the
first half of 2021, at a value of US$101 million, a year-onyear
increase of 36% in volume and 68% in value.
The CIF price rose by 23%, year-on-year. Almost all
China＊s log imports from Japan are softwood.
China＊s log imports from Japan have increased due to
active Japanese promotion of timber exports and in-depth
exchanges between Japanese producers, the Chinese
government and Chinese enterprises.
Concern on COVID-19 variants triggers decline in
exporter confidence in Hong Kong
The HKTDC (Hong Kong Trade Development Council)
Export Index dropped by 9.7 points in the third quarter of
2021, to 39.0, indicating that market uncertainties in light
of COVID-19 variants could be undermining the near-term
confidence of Hong Kong exporters. Two-thirds of
exporters indicated that they had been adversely affected
in the past three months, a 9.7% increase on the previous
quarter. Reductions in order sizes (cited by about 60% of
exporters) were the most common downside.
See:
https://research.hktdc.com/en/article/ODQ2ODEyMjg1?utm_source=weky_edm&utm_campaign=edm_promo_upd&utm_medium=edm&DCSext.dept=12&WT.mc_id=6251901
New ※international hub§ in development in Yangtze
River Delta
Shanghai, the leading city in the Yangtze River Delta
(YRD) region, is home to China＊s first pilot free trade
zone, the host city for the China International Import
Expo, and an important window for expanding imports
and helping businesses venture into the mainland market.
Central authorities have given the city the strategic task of
promoting cross-border trade, with the State
Council approving an overall plan in February 2021 for
the construction of the Hongqiao international hub.
High-level planning has been carried out for the
construction of the hub to promote the deepening of
reform and the coordinated opening up of the YRD. The
goal is to complete construction by 2035, with a functional
layout of ※one core and two belts§.
See:
https://research.hktdc.com/en/article/ODQ3NjE1MTY1?utm_source=weky_edm&utm_campaign=edm_promo_upd&utm_medium=edm&DCSext.dept=12&WT.mc_id=6251906
GGSC-CN Index Report, August 2021
China＊s PMI index declined to 50.1% in August 2021, a
decrease of 0.5 percentage points from the previous
month, indicating that, although the economy continued to
pick up, the rate of growth slowed. The wood production
and manufacturing industry was in its traditional offseason
in August. Domestic and international market
demand dropped and manufacturing continued to be tight.
The price of raw materials is still rising, the inventory of
raw materials has continued to decline, and the cost
pressure on the industry has increased.
The GGSC-CN comprehensive index for August was at
43.0% (compared with 47.1% in August 2020 and 42.1%
in August 2019), a decrease of 4.7 percentage points from
July (Figure below). It has been below the critical value of
50% for two months, showing that the operations of the
superior forest product enterprises represented by the
GGSC-CN index have been declining.
Challenges
Labour shortage.
It is difficult to purchase wood, and the supply of
imported raw materials is unstable.
There are few solid wood raw materials to meet
demand.
The price of raw materials is rising, and this
situation is becoming the norm.
The price of ebony and pine core board has
increased significantly.
Products in short supply
Diperyx, merbau, teak, zingana, chemical raw
materials, paint.
Commodities for which prices increased
South American materials such as diperyx and
tauari.
Merbau, teak, oak veneer, formaldehyde,
fibreboard, paper, paraffin, waterproofing agents,
melamine.
Commodities for which prices decreased
Chinese fir logs, pine core board, urea.
Four of five sub-indexes of the GGSC-CN fell
in August 2021 and one increased.
The production index was at 40.9%, down
by 5.2 percentage points compared with July; it has been
below 50% for two months now and shows that the
production of superior forest product enterprises
represented by the GGSC-CN has been falling.
The new-order index was at 40.9%, down
by 9.1 percentage points over July, indicating that the
ability of enterprises to obtain orders worsened in the last
month.
The new-export-order index, which reflects international
trade, was at 22.7% in August, down by 0.4 percentage
points from July, showing that orders from abroad
decreased in the last month.
The main-raw-material-inventory index was at 45.5%
in
August, up by 0.7 percentage points from July, indicating
that raw-material inventories of superior forest product
enterprises have been decreasing.
The employment index was at 45.5% in August, down
by 8.4 percentage points from July, showing that the
employment provided by forest product enterprises was
significantly down compared with July.
The supplier-delivery-time index was at 45.5%, up
by 7.0 percentage points from the previous month,
showing that supply times by raw-material suppliers to
forest product enterprises were more drawn out than in
July.
See:
http://www.itto-ggsc.org/site/article_detail/id/224
GGSC-Gabon Index Report, August 2021
The GGSC-Gabon index was at 54.3% in August (the
testing period for the index), an increase of 2.5 percentage
points over July.
It has been above the critical value of 50% for two
consecutive months, indicating that the overall operating
situation of key timber companies in Gabon is expanding.
Specifically, on the supply side, the manufacturing of key
enterprises decreased slightly; on the demand side, there
was rising momentum for enterprise orders. Export orders
rose slightly and enterprise orders on hand also increased
compared with the previous month. At the same time, the
price of raw materials increased significantly.
According to feedback from enterprises, inventories of
raw materials and finished products generally increased in
August, highlighting problems such as high export
logistics and transportation costs and a shortage of
containers.
The Figure below compares GGSC-Gabon and GGSCCN.
August is the traditional off-season for the forest
product manufacturing industry in China. The GGSC-CN
comprehensive index in August 2021 was at 43.0%
(compared with 47.1% in August 2020 and 42.1% in
August 2019), a decrease of 4.7 percentage points
compared with July; it has been below the critical value of
50% for two consecutive months, showing that the
operations of the forest product enterprises represented in
the GGSC-CN index shrank over the period.
The GGSC-Gabon sub-indices are as follows:
The production index was at 44.4% in August
2021, down by 13.9 percentage points from July
and below the critical value of 50%. It shows
that the production of key companies with forest
concessions in Gabon decreased compared with
July.
The new-order index was at 66.7% in August, up
by 16.7 percentage points from the previous
month, reflecting the ability of key companies
with forest concessions to obtain more orders
than in July.
The main-raw-material-inventory index was
at 57.1% in August, down by 2.9 percentage
points from the previous month (but still above
the critical value of 50%), showing that the rawmaterial
inventory of key companies with forest
concessions increased compared with July.
The employment index was at 50.0%, showing
that there was basically no change in
employment numbers for key companies with
forest concessions.
The supplier-delivery-time index was
at 41.7%, an increase of 8.3 percentage points
compared with the previous month, indicating
that the supply time of raw-material suppliers for
key companies with forest concessions was
significantly slower than in July.
See:
http://www.itto-ggsc.org/site/article_detail/id/225
|
