US Dollar Exchange Rates of
10th
Mar
2024
China Yuan 7.19
Report from China
2024 catalogue of national key industrial
products
includes wood
The State Administration for Market Regulation recently
issued the’ Catalogue of National Key Industrial Product
Quality and Safety Supervision’ (2024 edition). Wood
products, such as wooden furniture and wood-based panels
are included in the catalogue.
Wood-based panels in the Catalogue include blockboard,
MDF, particleboard, plywood, impregnated adhesive film
papered veneer, laminated wood flooring and solid wood
composite flooring. Food related products such as
disposable bamboo-wood chopsticks and wooden cutting
board are also included.
See:
https://www.forestry.gov.cn/lyj/1/lcdt/20240131/544533.html
Decline in wooden furniture exports
According to China Customs, wooden furniture exports in
2023 fell 4% to US$24.19 billion year on year. The US
was the largest market for China’s wooden furniture
exports and nearly 30% of China’s wooden furniture
exports were to the US, up 1% over 2022.
China’s wooden furniture is exported to more than 200
countries and these markets are very diverse. The top 5
countries for furniture exports of more than US$1billion
together accounted for only 53% of the national total
wooden furniture exports in 2023.
China’s wooden furniture exports to UK in 2023 rose 15%
to US$1.45 billion year on year. In contrast, China’s
wooden furniture exports to Australia and Japan dropped
11% and 12% to US$1.44 billion and US$1.39 billion
respectively in 2023.
China's wooden furniture exporters have encountered
difficulties and challenges in recent years, resulting in a
decline in wooden furniture exports in 2023. The main
reasons were as follows:
China's wooden furniture exports are often subjected to
barriers in the import countries especially those related to
in anti-dumping, technical standards and environmental
certification and environmental protection requirements
are getting higher and higher.
Many countries have begun to implement strict
environmental protection laws and regulations and have
put forward higher requirements for raw materials,
production processes and environmental protection
treatment of imported wooden furniture. This drives up
production costs and impacts competitiveness.
China’s wooden furniture enterprises are facing
competition from shippers whose costs are lower.
With the fluctuations in the global economy the supply
and demand has changed greatly and the furniture prices in
some emerging markets such as India and Vietnam are
relatively low which poses a competitive pressure on
China’s wooden furniture exporters.
In addition, the production technology and management
level of domestic wooden furniture production enterprises
in China is not high resulting in low productivity and
unstable product quality and these factors affect
international competitiveness. China’s wooden furniture
enterprises plan to respond by improving production
technology and management, optimising the supply chain
and strengthen brand building to enhance the
competitiveness.
Decline in wooden furniture imports
According to China Customs, wooden furniture imports
fell 13% to US$770.57 million in 2023. Italy, Germany
and Vietnam were the top 3 suppliers of wooden furniture
to China. Nearly 70% of wooden furniture from these
three countries fell by13%, 2% and 11%, to US$343
million, US$113 million and US$74.6 million respectively
in 2023. The demand for wooden furniture in the domestic
market is said to be weak and opportunities for growth are
limited.
Rapid development of China /Russia supply chain
A cooperation agreement has been agreed between the
Timber Industry Association in Suifenhe City,
Heilongjiang Province and the Federation of Timber
Industries and Exporters in Primorsky Krai, Russia.
According to the agreement the two sides will I”n line
with the basic principles of giving full play to the
advantages of all parties, realizing complementary
resources, matching mutual needs, voluntary win-win and
common development, determine the establishment of
partnership mainly in the wood industry raw material
supply chain, establish a management meeting and
communication mechanism from time to time, the
association leads the exchange of visits between the two
companies, build an industry exchange platform, and
regularly carry out activities”.
In particular, the Russian Association discussed the
possibility of the Association trading timber in the St.
Petersburg International Commodity Raw Materials
Exchange in Vladivostok and expressed its willingness to
set up a branch in Suifenhe City to jointly promote
commodities in China.
Imports of oak logs from Honduras
The forest products trade between Honduras and China is
growing and China’s log imports from Honduras in 2023
surged. While China’s oak imports have dropped
significantly from traditional shippers oak log arrivals
from Honduras have started for the first time. China
imported 450,000 cubic metres of oak logs from
Honduras, valued US$25 million in 2023.
According to China Customs, China’s oak imports in 2023
totalled 817,000 cubic metres, down 37% year on year.
The top 3 suppliers, France, USA and Germany saw oak
exports to Chian fall by 45%, 19% and 25% respectively
in 2023 resulting in the overall decrease in oak imports.
Rise in oak sawnwood imports from Russia
According to China Customs, oak sawnwood imports from
Russia in 2023 rose 14% to 127,000 cubic metres valued
at US$61 million, up 14% year on year.
In contrast, the top suppliers of oak sawnwood, the US and
Canada saw 2023 exports to China fall by 8% and 13% to
523,000 cubic metres and 190,000 cubic metres
respectively resulting in the overall decrease in oak
sawnwood imports in 2023. China’s oak sawnwood
imports felld 7% to 681,000 cubic metres in 2023.
China’s oak sawnwood imports from France and Germany
in 2023also dropped 87% and 25% year on year.
 
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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