US Dollar Exchange Rates of
25th
Feb
2024
China Yuan 7.19
Report from China
Rise in 2023 sawnwood imports
China Customs has reported 2023 sawnwood imports
totalled 27.78 million cubic metres valued at US$6.84
billion, a year on year increase of 5% in volume but a
decrease of 9% in value on 2022. The average price for
imported sawnwood in 2023 was US$246 per cubic metre,
a year on year decline of 13%.
Of total sawnwood imports, sawn softwood imports rose
4% to 17.99 million cubic metres and accounted for 65%
of the national total, almost the same as in 2023. The
average price for imported sawn softwood in 2023 was
US$196 per cubic metre, down 16% year on year.
Sawn hardwood imports totalled 9.79 million cubic metres
valued at US$3.312 billion, a year on year increase 7% in
volume but a decline of 5% in value on 2022. The average
price for imported sawn hardwoods was US$338 per cubic
metre, a year on year decline of 9%.
Of total sawn hardwood imports, tropical sawn hardwood
imports were 6.91 million cubic metres valued at
US$1.923 billion, a year on year increase of 9% in volume
and 1% in value and accounted for about 25% of the
national total, up 1 percentage points on 2022 levels. The
average price for imported tropical sawn hardwood was
US$278 per cubic metre, down 8% year on year.
 
China’s sawnwood imports in 2023 expanded as there has
been a slight recovery in the consumer markets of building
materials and furniture and there has been a change in
direction in the wood processing industry away from
roundwood to sawnwood.
Drop in sawnwood imports from Russia
While Russia remained the largest supplier of sawnwood
imports in 2023 the volume imported dropped slightly to
13.06 million cubic metres and accounted for 47% of the
national total. The value of imports was valued at
US$2.647 billion, down 12% on 2022. The average price
for imported sawnwood from Russia in 2023 was US$229
per cubic metre, a year on year decline of 11%.
China’s sawnwood imports from Thailand, now the
second largest supplier, came to 4.5 million cubic metres
valued at US$1.084 billion, up 17% in volume and 10% in
value on 2022. The average price for imported sawnwood
from Thailand in 2023 was US$250 per cubic metre, a
year on year decrease of 3%. The decline in the price of
sawnwood on international market has lifted the rise in
China's import volumes to a certain extent. CIF prices for
all the top suppliers of sawnwood imports fell but at
different rates.
All imports from Sweden are sawn softwood
The Swedish wood industry is facing challenges especially
related to international shipping. It has been estimated that
to avoid Red Sea shipping costs have almost doubled and
the risk of container shortages, delays and disruptions has
risen.
However, even in the face of multiple challenges Sweden's
wood exports to China in 2023 show an upward trend.
China’s sawnwood imports from Sweden rose 23% to
809,456 cubic metres in 2023 and all was sawn softwood.
Chinese importers applaud the quality of the sawnwood
from Sweden.
Sawnwood imports from Ukraine continue to decline
China’s sawnwood imports from Ukraine continue to
decline and fell 69% to 57,000 cubic metres in 2023, a
dramatic drop as a result of Russia’s attempted invasion of
Ukraine.
Since 2014 China’s sawnwood imports from Ukraine were
increasing and topped 1 million cubic metres in 2020 but
have been declining since then.
Sawn softwood imports
In 2023 China’s sawn softwood imports rose 4% resulting
driven by increased shipments from most of the top
suppliers. Some of the other shippers posted increased
sawnwood exports to China such as Belarus, New
Zealand, Uruguay and US where imports rose 44%, 78%,
65% and 35% respectively.
In contrast, China’s sawn softwood imports from Canada
and Finland dropped 2% and 1% respectively. The market
share of China’s sawn softwood imports from Canada has
declined significantly since 2014 and amounted to 7% in
2023, around the same level as in 2022.
Surge in sawn hardwood imports from Myanmar and
Vietnam
Sawn hardwood imports were 9.793 million cubic metres
valued at US$3.312 billion in 2023, a year on year
increase 7% in volume but decrease 5% in value.
Thailand, Russia and USA still were the main sources for
China’s sawn hardwood log imports in 2023 and
accounted for 46%, 12% and 11% respectively. China’s
sawn hardwood imports from the three countries made up
almost 70% of the national total hardwood imports in
2023.
China’s sawn hardwood imports from Thailand and the
US rose 17% and 7% in 2023 to 4.497 million cubic
metres and 1.096 million cubic metres respectively.
In contrast, China’s sawn hardwood imports from Russia
declined 2% to 1.167 million cubic metres compared to
2022. In 2023 China’s sawn hardwood imports from
Myanmar and Vietnam surged 119% and 146%
respectively.
Rise in sawn tropical hardwood imports
China’s sawn tropical hardwood imports in 2023 were
6.913 million cubic metres valued at US$1.923 billion, a
year on year increase of 9% in volume and 0.8% in value
and accounted for about 25% of the national total, up 1
percentage points on 2022.
Thailand was again the largest supplier of China’s sawn
tropical hardwood imports in 2023 sawn tropical
hardwood imports from Thailand totalled 4.497 million
cubic metres valued at US$1.084 billion, a year on year
increase of 17% in volume and 10% in value.
Thailand’s market share for tropical sawn hardwood
exports to China rose to 65% making Thailand the number
one supplier in 2023.
The Philippines and Gabon were the second and third
largest supplier of China’s sawn tropical hardwood
imports in 2023. Sawn tropical hardwood imports from the
Philippines and Gabon amounted to 779,000 cubic metres
and 538,000 cubic metres respectively, a year on year
increase of 19% but decrease 11% respectively.
The top three countries supplied 84% of China’s tropical
sawn hardwood requirements in 2023, namely Thailand
(65%), Philippines (11%) and Gabon (8%) in 2023.
Decline in CIF prices for sawn tropical hardwood
imports
The average price for imported sawn tropical hardwood
was US$278 per cubic metre in 2023, down 8% year on
year. CIF prices for most suppliers of China’s tropical
sawn hardwood imports fell at different rates which
stimulated an increase in sawn tropical hardwood imports
in 2023.
The CIF prices for the top suppliers of sawn tropical
hardwood imports from Thailand, the Philippines and
Gabon declined 3%, 9% and 9% respectively in 2023.
In contrast, CIF prices for China’s sawn tropical hardwood
imports from Myanmar surged 53% and from Indonesia
rose 19% on 2022 level.
GTI-China Index Report, January 2024
According to data released by China's National Bureau of
Statistics, China's GDP grew by 5.2% to more than 126
trillion yuan in 2023. Statistics from the General
Administration of Customs of China showed that China's
total imports and exports reached 41.76 trillion yuan in
2023, up 0.2% year on year.
The statistics for 2023 also showed that the import volume
of logs and sawn timber totaled 65.8 million cubic metres,
a year on year decrease of 6.1%. In 2023, the total output
value of China's forestry sector exceeded 9.2 trillion yuan
and as the output of economic forests reached 226 million
tonnes, forest food become the third largest agricultural
product after grain and vegetables.
On 22 January China launched National Voluntary
Greenhouse Gas Emissions Reduction Trading Market and
China National Offshore Oil Corporation (CNOOC)
completed the country's first transaction on the Beijing
Green Exchange, with a total trading volume registering
250,000 tonnes of national certified voluntary emissions
reductions.
The Beijing Green Exchange predicted that the annual
trading volume is expected to exceed 10 billion tonnes and
the transaction value may exceed 1 trillion yuan, according
to calculations based on its 7 to 8 billion tonnes of quota.
In January this year, as the Chinese Spring Festival was
approaching, some wood processing plants started the
holiday ahead of schedule and many workers had returned
to their hometowns. At the same time, under the influence
of multiple factors such as reduced real estate transactions
and sluggish international demand, the overall trade
performance in the timber sector was weak.
GTI-China enterprises reported that the production volume
decreased compared with previous years, while the costs
of equipment increased due to intermittent operations, and
the shipping fees also rose. In the meantime some
enterprises hoped the government could implement
macroeconomic regulation and control to stimulate an
increase in market demand.
In January, the GTI-China index recorded 34.1%, a
decrease of 13.4 percentage points compared to that of the
previous month, was below the critical value (50%) for 2
consecutive months, indicating that the business prosperity
of the timber enterprises represented by the GTI-China
index shrank from last month and the rate of contraction
expanded.
The production index registered 25.0%, a decrease of 8.3
percentage points from the previous month, was below the
critical value for 2 consecutive months, indicating that the
production volume of the superior timber enterprises
represented by the GTI-China was less than that of last
month.
The new orders index registered 28.1%, a decrease of 27.8
percentage points from the previous month, fell below the
critical value after 3 months, indicating that the number of
new orders of the superior timber enterprises represented
by the GTI-China was less than that of last month.
The export orders index registered 37.5%, a decrease of
17.5 percentage points from the previous month fell below
the critical value after one month, indicating that the
number of export orders of the superior timber enterprises
represented by the GTI-China was less than that of last
month.
See:
https://www.itto-ggsc.org/static/upload/file/20240223/1708653799120615.pdf
Through the eyes of industry
The latest GTI report lists the challenges identified by the private
sector in China.
See:
https://www.itto-ggsc.org/static/upload/file/20240223/1708653799120615.pdf
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