US Dollar Exchange Rates of
10th
Nov
2022
China Yuan 7.187
Report from China
Financial support
for real estate sector
A Notice (Yinfa 2022 No. 254) on the Current Financial
Support for Steady and Healthy Development of Real
Estate Market has been released by Central Bank and
China Banking and Insurance Regulatory Commission
recently. This outlines 16 measures on maintaining stable
and orderly real estate financing, actively providing
"financial services to guarantee the delivery of housing,"
handling risks of troubled real estate enterprises, and
protecting the legitimate rights and interests of consumers
in accordance with the law.
The regulatory authorities' advice to the real estate
industry has changed from verbal guidance to official
documentation issued to banks, the China Banking and
Insurance Regulatory Commission, trusts, and asset
management institutions.
The 16 measures cover the upstream and downstream
financing of real estate such as development loans, trust
loans, merger loans, guarantee delivery of building,
housing enterprise rescue, loan extensions, construction
enterprise loans, leasing financing, personal mortgage loan
and credit investigations.
National standards on wood-based panels
The committee on Standardisation Administration of
China (SAC) under the State Administration for Market
Regulation released 708 recommended national standards
and 3 revised lists of national standards, including 4
recommended national standards on wood-based panels.
GB/T 41715-2022 Oriented strand board(OSB)
GB/T 24312-2022 Cement particleboard Substitute for old
standard GB/T 24312-2009
GB/T 26899-2022 Laminated wood for structure
Substitute for old standard GB/T 26899-2011
GB/T 23825-2022 Gas Analysis method for Formaldehyde
Emission Determination of Wood-based Panel Products
Substitute for old standard GB/T 23825-2009
Decline in log imports from EU
According to China Customs in the first nine months of
2022 China’s log imports fell 32% to 33 million cubic
metres valued at US$6.732 billion, down 22% in value
over the same period in 2021. The volume of China’s log
imports from most of countries declined in the first nine
months of 2022, especially from the EU.
China’s log imports from the largest supplier, New
Zealand, were 12.84 million cubic metres valued at
US$2.02 billion, down 16% in volume and 19% in value
in the first nine months of 2022. In the first nine months of
2022 China’s log imports from the EU totalled 8.21
million cubic metres valued at US$1.67 billion, down 41%
in volume and 28% in value.
The volume of China’s log imports from the top 3 EU
countries, Germany, France and the Czech Rep. fell 52%,
4% and 42% to 4.51 million cubic metres, 1.05 million
cubic metres and 0.7 million cubic metres respectively.
However, China’s log imports from Latvia, Demark,
Sweden and Netherlands rose.
Rise in sawnwood imports from EU
In the first nine months of 2022 China’s sawnwood
imports totalled 19.85 million cubic metres valued at
US$5.79 billion, down 9% and 0.04% in value over the
same period of 2021.
China’s sawnwood imports from the largest supplier,
Russia, came to 9.86 million cubic metres valued at
US$2.31 billion, down 9% in volume but up 1% in value.
In the first nine months of 2022 China’s sawnwood
imports from the EU totalled 1.983 million cubic metres
valued at US$642 million, up 1% in volume and 5% in
value. The volume of China’s sawnwood imports from the
top 3 EU member states, Finland, Germany and Sweden
grew 4%, 3% and 21% to 564,000 cubic metres, 446,000
cubic metres and 361,000 cubic metres respectively. In
addition, China’s sawnwood imports from Austria and
Croatia rose 80% and 21% respectively.
However, China’s imports of sawnwood from Romania
fell 16% to 209,000 cubic metres.
Growth in plywood imports from Russia
According to China Customs in the first nine months of
2022 China’s plywood imports totalled 149,000 cubic
metres valued at US$144 million, up 19% in volume and
27% in value. Plywood imports from Russia grew 45% to
83,000 cubic metres over the same period of 2021.
An increasing trend is shown in the China’s plywood
imports from Russia from 2014 to 2019 but declined 6%
in 2020 and 7% in 2021.
Surge in plywood imports from EU
In the first nine months of 2022 China’s plywood imports
from EU surged 82% to 31,000 cubic metres valued at
US$53 million, up 49% over the same period of 2021.
Plywood imports from the top two EU countries, Italy and
Finland surged more than 300% and 160% respectively. In
addition, China’s plywood imports from Germany, Latvia
and Estonia rose more than 80%, 100% and 270%
respectively.
Decline in plywood exports to EU
In the first nine months of 2022 China’s plywood exports
to EU totalled 1.45 million cubic metres valued at US$996
million, down 4% in volume but up 17% in value over the
same period of 2021. Plywood exports to the top two EU
member states, UK and Belgium, fell 14% and 3% to
540,000 cubic metres and 325,000 cubic metres
respectively.
In the first nine months of 2022 China’s plywood exports
totalled 8.09 million cubic metres valued at US$4.367
billion, down 8% in volume but up 7% in value over the
same period of 2021.
China’s plywood exports to the largest importer, the
Philippines, fell 14% to 743,000 cubic metres valued at
US$309 million cubic metres, down 6% over the same
period of 2021.
Decline in wooden furniture exports to EU
In the first nine months of 2022 the value of China’s
wooden furniture exports to the EU amounted to
US$3.153 billion, down 19% over the same period of
2021. Wooden furniture exports to the largest consumer
the UK fell 23% to US$974 million which pushed down
overall export values.
In addition, China’s wooden furniture exports to the EU
member states, Germany, France, Netherlands, Spain,
Belgium, Poland, Italy and Demark declined 19%, 8%,
19%, 3%, 37%, 25%, 26% and 27% over the same period
of 2021 respectively.
In the first nine months of 2022 the total value of China’s
wooden furniture exports rose 6% to US$19.61 billion
from the same period of 2021 but China’s wood furniture
exports to the largest consumer, the US, fell 7% to
US$5.49 billion.
Decline in wooden furniture imports from the EU
In the first nine months of 2022, the value of China’s
wooden furniture imports from the EU came to US$548
million, down 6% over the same period of 2021. Wooden
furniture imports from the largest suppliers Italy, fell 4%
to US$325 million.
In addition, China’s wooden furniture imports from the top
EU countries, Germany, Poland and Lithuania amounted
to US$89 million, US$38 million, and US$11 million,
down 19%, 2% and 59% respectively over the same period
of 2021. However, China’s wood furniture imports from
France and Denmark rose 10% and 52% to US$17 million
and US$10 million respectively.
In the first nine months of 2022, the total value of China’s
wooden furniture imports fell 7% to US$694 million from
the same period of 2021. China’s wood furniture imports
from Southeast Asian countries, Vietnam, Thailand and
Malaysia also fell 17%, 30% and 19% respectively but
from Indonesia imports rose 10%.
GGSC-CN Index Report (October 2022)
In October 2022 the impact of the pandemic expanded and
demand decreased. China's macroeconomic growth is still
under great pressure. In October China's PMI index
registered 49.2%, a decline from the previous month and
below the critical value of 50%.
In the timber manufacturing industry orders and
production are less than the previous month. Export orders
decreased. The GGSC-CN comprehensive index for
October registered 46.8% (57.2% for last October and
44.2% for October 2020) a declines from the previous
month and below the critical value.
Challenges
Lack of raw materials
Declining quality of raw materials
Raw materials are out of stock
Disrupted supply chain
Commodity of which the price has been increased
Veneer, oak blank, teak, black walnut, eucalyptus,
methanol, paraffin, melamine, water repellent.
Commodity of which the price has been decreased
Okan, taun, teak, birch. Brazilian redwood, hematoxylin,
hickory log, core board, fuelwood, pine wood, eucalyptus
fuelwood.
In October 2022 three sub-indexes of GGSC-CN increased
and two decreased. The production index registered
48.2%, a decline from the previous month and below the
critical value.
The new order index registered 46.3%, a decline
from the previous month and being below the
critical value reflecting the ability of enterprises
to obtain orders is worse than the previous month.
The new export order index reflecting
international trade registered 38.9%, a decline
from the previous month. The number of export
orders fell compared to the previous month.
The main raw material inventory index
registered
46.3%, an increase from the previous month.
The employment index registered 46.3%, an
increase from the previous month.
The supplier delivery time index was 50.0%, an
increase from the previous month. It indicates
that the supply time of raw material suppliers to
enterprises improved.
 
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