US Dollar Exchange Rates of
10th
Dec
2021
China Yuan 6.3699
Report from China
National standards on MDF and LVL released
National standards on Medium Density Fibreboard (GB/T
11718¡ª2021) and Laminated Veneer Lumber (GB/T
20241¡ª2021) will be effective as of 1 June 2022. The two
new standards are revisions of the standards (GB/T
11718¡ª2009) and (GB/T 20241¡ª2006).
Medium density fibreboard (MDF) is one of the main
types of fibreboard in China accounting for more than
80% of the national total output of fibreboards. The output
of MDF was 53.47 million cubic metres in 2020 in China.
Since the release of GB/T 11718-2009 MDF in 2009 it has
played an important role in regulating the production of
MDF in China and in improving the quality of MDF
products.
In order to promote further development of MDF industry
the GB/T 11718-2021 standard is partially revised
according to international standards for MDF and some
technical content has been revised.
Laminated Veneer Lumber (LVL) is an important
structural material widely used in building I-beams and
wood joists and for door frames and furniture framing.
Since the release of GB/T 20241-2006 LVL in 2006 the
standard has played an important role in standardising
production, improving product quality and promoting the
development of wooden structural and packaging industry.
In the revision of GB/T 20241-2021 the relevant standards
of ISO are adopted with full reference to the relevant
standards of Japan and the EU.
Merchants advised to stock up in advance
The Winter Olympic Games will be held soon and the
Chinese government has implemented environmental
control measures in many provinces where air pollution is
a problem such as in Northern Western China.
All heavy industries in these provinces will be shut down
before 1 January 2022 with a focus on Hebei Province
(Tangshan, Shijiazhuang, Zhangjiakou and Chengde
cities), Tianjin, Shandong province (Jinan, Weihai and
Weifang cities), Shanxi Province (Taiyuan, Datong and
Changzhi cities) and He¡¯nan Province (Luoyang and
Zhengzhou cities). The shutdown period is from January
1, 2022 to March 8, 2022.
Timber merchants have been advised to stock up in
advance to guarantee their production requirements can be
met during the shutdown.
Decline in sawnwood imports in Q3 2021
According to China Customs in the third quarter of 2021
sawnwood imports totalled 21.91 million cubic metres
valued at US$5.792 billion, down 19% in volume and 2%
in value. The decline in sawnwood imports in the third
quarter of 2021 was because of a drop in supplies from
Russia, Canada, the USA, Finland and Germany (down
13%, 54%, 42%, 32% and 48% respectively). Imports
from these suppliers accounted for over 60% of the
national total.
The main reasons for the decline in sawnwood imports
were the impact of the pandemic control measures on
processing plants and the fact that these plants could not
secure adequate raw materials. The second factor was
logistic problems. Another factor was that there was strong
demand in the EU, US and Japanese construction sectors
where timber prices were rising.Sawn softwood imports
fell 26% to 15.01 million cubic metres, accounting for
69% of the national total.
A significant decrease in coniferous log imports was
responsible for the overall fall in total log imports in the
third quarter of 2021.
Slight increase both in sawn hardwood and
tropical
sawnwood imports
Sawn hardwood imports rose 3% to 6.9 million cubic
metres because of higher imports from the top sources
Thailand, Russia and the Philippines (up 6%, 25% and
93% respectively) however, sawn hardwood imports from
the US fell 16% in the third quarter compared to 2020.
Of total sawn hardwood imports tropical sawnwood
imports were 4.46 million cubic metres valued at
US$1.421 billion, up 1% both in volume and in value and
accounted for about 20% of all sawnwood imports.
The main suppliers of tropical sawnwood imports in
the
third quarter were Thailand, the Philippines and Gabon.
The imports from these suppliers accounted for over 80%
of the national total.
The volumes from Thailand, the Philippines and Gabon
rose 6%, 93% and 1% respectively in the third quarter of
2021 and this was why tropical sawnwood imports rose in
the third quarter of 2021.
However, the volume from other suppliers, Cameroon,
Myanmar and Indonesia fell 13%, 21% and 46%
respectively in the third quarter of 2021. The Philippines
has seen a sharp jump in tropical sawnwood exports to
China surging to 450 000 cubic metres in the third quarter
of 2021.
Rise in CIF prices for sawnwood imports but not for
tropical sawnwood
The CIF prices for imported sawnwood rose 21% to
US$264 per cubic metre in the third quarter of 2021. The
CIF prices for imported sawn softwood and sawn
hardwood increased 24% and 4% to US$212 and US$378
per cubic metre respectively over the same period of 2020.
However, the average CIF price for tropical sawnwood
imports did not rise but declined dropping 2% to US$318
per cubic metre. The CIF price for tropical sawnwood
imports from PNG fell the most, dropping 24% to US$575
per cubic metre, for the Republic of Congo and Indonesia
the decline was 6% and 4% respectively.
GGSC-CN Index Report (November 2021)
In November 2021, China's PMI index registered 50.1%,
an increase from the previous month. The index has been
above 50% for 2 consecutive months indicating that the
economy has stabilised after the corrections.
In November timber production and manufacturing of
wood products contracted compared with the previous
month. Orders and production fell and the inventory of
finished products declined.
It is worth noting that in November the price of raw
materials fell for the first time after rising for 11
consecutive months.
The GGSC-CN comprehensive index
for November registered 44.7% (53.3% for
last November and 55.6% for November 2019) and
was below the critical value of 50%. It shows that the
operations of the forest products enterprises represented by
GGSC-CN index declined from last month.
Challenges faced by GGSC enterprises
Products in short supply: Cumaru£¬Merbau£¬Oak£¬
Zingana
Commodity of which the price has been increased: fuel,
waterproof agent, base material, glue, formaldehyde
Commodity of which the price has been decreased:
Fibreboard, colored paper, eucalyptus board, eucalyptus
fuelwood, urea and melamine
Trend in sub- indices
In the GGSC-CN index for November 2021one subindex
increased, one was flat and three dropped.
The production index registered 33.3% down from the
previous month and below 50% for two months. This
indicates that the production of forest products enterprises
represented by GGSC CN is worse than that of last month.
The new order index registered 50.0%, a declines from the
previous month reflecting the ability of enterprises to
obtain orders is almost the same asOctober. The new
export order index reflecting international trade
registered fell as orders from abroad in November
declined.
The main raw material inventory index registered 44.4%, a
month on month decline signaling a drop in inventory.
The employment index registered the same as October but
the supplier delivery time index dropped even indicating
that the supply time for raw materials was slower than the
previous month.
 
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