US Dollar Exchange Rates of
10th
Mar
2023
China Yuan 6.91
Report from China
Plywood production capacity in 2022
According to the statistics from the Academy of Industry
Development and Planning under the National Forestry
and Grassland Administration and the China Forestry
Products Industry Association (CFPIA), both the number
of enterprises and production capacity of China’s plywood
industry declined slightly in 2022.
There were more than 10,800 plywood manufacturing
enterprises (down 14% year on year) at the end of 2022
with a production capacity of 208 million cubic metres per
year, down 6.3% over 2021.
Shandong Province was the largest in terms of plywood
production capacity and enterprise numbers in 2022. There
were 3,550 mills with a capacity of 56 million cubic
metres.
The production capacity for polyurethane adhesives,
beanbased
protein adhesives, lignin adhesives, starch-based
adhesives, thermoplastic resin adhesive film and other
formaldehyde-free plywood products increased.
The first continuous flat pressed formaldehyde-free
plywood production line was operational in June 2022
marking a new stage of continuous plywood production in
China.
Five plywood manufacturers in China had horizontal
multilayer presses with automatic loading and unloading
by the end of 2022.
By the end of 2022, there were more than 350 plywood
manufacturers in China with an annual production
capacity of more than 100,000 cubic metres including
nearly 150 large manufacturers and enterprise groups with
a combined production capacity of some 27 million cubic
metres per year and accounting for 13% of the total
production capacity.
Seven of these mills have an annual production capacity of
more than 500,000 cubic metres.
At the beginning of 2023 around 2,000 plywood
production plants were under construction nationwide with
a total production capacity of about 26 million cubic
metres per year. 25 provinces and autonomous regions had
plywood production enterprises under construction except
Beijing, Shanghai, Tianjin, Chongqing, Qinghai Province
and Tibet Autonomous Region. It is expected that the total
production capacity of plywood in China will be close to
210 million cubic metres per year by the end of 2023.
Decline in solid composite floor exports
China’s plywood exports (HS code 4412 + solid
composite floors) in 2022 totalled 10.68 million cubic
metres valued at US$5.63 billion, down 14% in volume
and 4% in value year on year.
The markets for China’s solid wood composite floor
exports are numerous. In 2022 exports went to around 200
countries.
The Philippines, UK, Japan and UAE were the top markets
for China’s solid composite floor exports in 2022. The
proportion of China’s solid composite floor exports to
these top countries was just 28% of all shipments. The
volume of China’s solid composite floor exports to most
of these top countries fell at different rates in 2022.
Surge in plywood exports to Australia and Japan
China’s plywood exports (HS code 4412 except solid
composite floors) to Australia and Japan in 2022 surged
more than 120% and 470% to 163,000 cubic metres and
125,000 cubic metres, valued at US$113 million and
US$77 million.
China’s plywood exports (HS code 4412 except solid
composite floors) to Taiwan P.o.C and the US in 2022 fell
20% and 37% to 229,000 cubic metres and 225,000 cubic
metres valued at US$84 million and US$113 million,
down 17% and 38% year on year respectively.
The decline in the top two destination resulted in the total
volume of China’s plywood exports (HS code 4412 except
solid composite floors) to fall 7% to 1.213 million cubic
metres year on year in 2022.
The proportion of the top 4 countries for China’s plywood
exports accounted for more than 60% of the national total.
Soaring plywood imports from Russia
According to the data from China Customs plywood
imports (HS code 4412 + solid composite floors) totalled
196,251 cubic metres valued at US$188 million, up 22%
in volume and 23% in value year on year in 2022.
Of the total, solid composite floor imports rose 6% to
161,555 cubic metres valued at US$170 million, up 14%
year on year in 2022.
China’s plywood imports (HS code 4412 except solid
composite floors) surged 372% to 34,696 cubic metres
valued at US$19 million, soaring 349% year on year in
2022.
Russia was the largest supplier of China’s plywood
imports in 2022. China’s plywood imports from Russia
soared more than 6,000% to 26,952 cubic metres
accounting for 78% of the national total. Chinese
enterprises have built factories to manufacture plywood
and export to China by the China-Europe railway. This is
why Chinese imports of Russian plywood have soared.
Indonesia and Japan were also suppliers of plywood
imports in 2022. China’s plywood imports from Indonesia
fell 18% to 2,443 cubic metres, from Japan but rose 17%
to 2,129 cubic metres year on year.
China’s plywood imports from the three suppliers, Russia,
Indonesia and Japan made up 91% of the national total in
2022.
Russia was also the largest supplier of China’s solid
composite floor imports in 2022. China’s solid composite
floor imports from Russia rose 23% to 88,484 cubic
metres, accounting for 55% the national total.
Indonesia is the second largest supplier for China’s solid
composite floor imports in 2022. However, China’s solid
composite floor imports from Indonesia fell 18% to 15,637
cubic metres year on year.
Slight increase in furniture exports
China's furniture exports increased slightly in 2022 due to
the continuous growth of domestic furniture enterprises
and production capacity despite the impact of the COVID-
19 pandemic, the travel restrictions on executives and the
difficulties in international logistics.
China’s wooden furniture is exported to more than 200
countries. The top six markets of more than US$1billion
together accounted for only 55% of total furniture exports.
The United States was the largest exporter of China’s
wood furniture in 2022 accounting for 27% of the export
value of wood furniture. As a direct result of the weaker
demand in 2022 China's exports of wooden furniture to the
United States fell 13% to US$7.05 billion in 2022. China’s
wood furniture exports to UK fell 26% to US$1.28 billion
year on year in 2022.
In contrast, China’s wooden furniture exports to Australia,
Japan, South Korea and Hong kong rose 7%, 7%, 11% and
36% to US$1.66 billion, US$1.59 billion, US$1.44 billion
and US$1.18 billion respectively in 2022.
Italy and Germany the top sources of wooden furniture
imports
China’s imports of wooden furniture have been falling
steadily for several years. China’s wooden furniture
imports fell 11% to US$882 million in 2022.
Italy and Germany were the two major suppliers of
wooden furniture to China. Italy was the largest supplier
and Germany was the second largest supplier for China’s
wooden furniture imports in 2022 but imports fell 10%
and 24% to US$397 million and US$116 million
respectively. China’s wood furniture from the two main
sources accounted for 58% of the national total.
China's imports of wooden furniture from Sweden
increased significantly and surged 97% year on year in
2022. This is because of Amazon’s cross-border ecommerce
expanded during the epidemic.
February Global Timber Index Report
The Global Timber Index has the following to report on
the situation in China’s timber sector in February. After
the Chinese New Year holiday production resumed and
social mobility recovered which spurred domestic demand
and boosted manufacturing, the vitality of markets has
been enhanced and China's economy is accelerating its
recovery.
Data released by the National Bureau of Statistics shows
that, China's production and trade grew rapidly in January
and February this year. Industrial added value increased by
7.5% year-on-year, total trade increased by 13.3% yearon-
year and employment and prices were stable.
China's GDP growth is expected to be 5% in 2023
according to data released by the Institute of Economics,
Chinese Academy of Social Sciences. Driven by the
recovery of macroeconomics the positive changes in
China's timber processing and manufacturing industry
increased significantly in February with both supply and
demand showing a growth trend. Production and orders of
enterprises increased compared with the previous month,
the downward trend of orders from overseas was
alleviated and activities such as procurement and supplier
distribution were more active than in the previous month.
However, enterprises still feel worried about the pace of
improvement in demand. In February the GTI-China index
registered 52.4%, an increase of 30.9 percentage points
from the previous month and rose above the critical value
indicating that the business prosperity of the timber
enterprises represented by the GTI-China index has
expanded from last month.
See: See:
https://www.ittoggsc.org/static/upload/file/20230214/1676340295137619.pdf
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