US Dollar Exchange Rates of
10th
Apr
2024
China Yuan 7.23
Report from China
Fibreboard production capacity in 2023
According to 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
fibreboard industry continued to decline in 2023.
There were more than 278 fibreboard manufacturing
enterprises (down 19% year on year) at the end of 2023
with a production capacity of 46 million cubic metres,
down 4% over 2022. Shandong Province was the largest in
terms of fibreboard production capacity at 6.4 million
cubic metres exceeding Guangxi Zhuang Autonomous
Region in 2023 but down 5% over 2022.
Guangxi Zhuang Autonomous Region’s production
capacity dropped 15% to 5.9 million cubic metres,
dropping from the top production ranking for the first time
but still accounting for 13% of the national total.
Rise in fibreboard exports
China Customs data shows fibreboard exports totalled
2.205 million tonnes valued at US$1.194 billion, up 10%
in volume but down 0.5% in value over 2022.
Mexico, Nigeria and Saudi Arabia were the top 3
destinations in 2023. Mexico was the largest destination
for China’s fibreboard exports in 2023, up 65% to 223,000
tonnes over 2022. China’s particleboard exports to Nigeria
rose 7% to 214,000 tonnes valued at US$88 million, down
1.2% over 2022.
In addition, China’s fibreboard exports to Vietnam and
Canada in 2023 increased 17% and 37% respectively. In
contrast, China’s fibreboard exports to Saudi Arabia, USA
and UAE in 2023 fell 10%, 23% and 32% respectively.
The growth in China's fibreboard exports was due to the
gradual recovery of fibreboard production capacity and
price discounting support which lifted demand.
Sharp decline in fibreboard imports
China’s fibreboard imports were 51,300 tonnes valued at
US$48.9 million in 2023, down 45% in volume and 50%
in value year on year. New Zealand and Germany were the
two top suppliers in 2023. However, China’s fibreboard
imports from New Zealand and Germany fell 13% and
55% to 14,500 tonnes and 10,100 tonnes respectively.
In addition, China’s fibreboard imports from Thailand,
Belgium, Poland, Spain and Switzerland fell sharply in
2023. In contrast, China’s fibreboard imports from
Romania, alone among the top suppliers in 2023, rose 45%
to 2,200 tonnes year on year.
The decrease in China’s fibreboard imports was because
domestic production surpluses could meet local demand.
Development trends of China's wood-based panel
trade
China's wood-based panel import and export are faced
dual challenges from domestic and foreign markets from
2020 to 2023. Internally, because of the pandemic and the
contraction of the real estate economy, the operating
efficiency of the supply chain declined and the domestic
market continued to weaken. Externally, affected by
exchange rate fluctuations and inflation, demand in
international markets cooled significantly and the
competitive pressure from the SoutheastAsian exporters
increased.
Overall, China's wood-based panel manufacturing industry
still has a strong advantage in international markets and
has made a major contribution to the global supply wood-
based panels.
As covid control measures took effect in China ‘stable
growth and expanding domestic demand’ has become the
main thrust of macro-economic policy the issue now is
how to use this opportunity for economic recovery to
further break through the development bottlenecks in the
wood-based panel trade, an urgent issue for China's wood-
based panel industry.
The following measures have been proposed to develop
China's wood-based panel trade.
Emerging markets should actively be explored. It is
suggested to further promote the "Belt and Road" forestry
economic and trade cooperation, take advantage of the
differences in resource endowment and continuously
improve the global allocation capacity of wood resources
and the growth potential in emerging markets.
Make full use of the institutional dividend from regional
trade agreements such as regional Comprehensive
Economic Partnership agreement, accelerate integration of
the regional value chain for the wood-based panel sector,
strengthen intra-industry trade with neighboring countries
in Asia to include raw material and semi-finished products
and other production bases in different regions to create
new growth points for China's wood-based panel exports.
Tap the potential of the domestic market and accelerate
business models in which the domestic cycle plays a major
role such that the domestic and international cycles
reinforce each other.
Transforming the pattern of production and marketing
management should be accelerated. Production lines
should be adjusted and transformed in a timely manner to
meet domestic standards.
Product types and styles suitable for the domestic market
should be developed. Sales channels that meet the
purchasing habits of domestic consumers should be
established.
Finally, the transformation and upgrading of the wood-
based panel industry will be realised by strengthening
independent innovation and accelerating brand building.
China's wood-based panel industry has entered a key stage
from "incremental" development to ‘enhanced quality’
development. In order to stimulate economic recovery in
2023 China formulated a number of preferential policies
for small and medium-sized enterprises.
Wood-based panel enterprises should actively use the new
round of policy dividends to further enhance the overall
competitive advantage of the industry, including
optimising the structure of wood-based panel sector and
improving the scientific and environmental credentials of
products. Technological transformation in the wood-based
panel industry should be strengthened.
The cooperation between upstream and downstream
enterprises should be strengthened to create strategic
competitive alliances. Advanced technology and
management methods should be introduced. Standardised
management and independent brand creation in the wood-
based panel industry should be strengthened and the
international market recognition of China's wood-based
panel industry should be enhanced.
Rise in bamboo, wood and grass products export in
Hailar city
Bamboo, wood and grass products, as a fast developing
green processing export industry in Inner Mongolia of
China, have been exported to South Korea, Vietnam and
Germany in recent years. However, most of the
manufacturers of bamboo, wood and grass products are
small and medium-sized enterprises which lack the ability
to deal with technical trade measures and often face the
problem of ‘want to do but afraid of making mistakes’.
Manzhouli Customs of Inner Mongolia helps enterprises to
fully enjoy preferential tariff policies and fully help
enterprises to explore overseas markets. Hailar Customs
supervised and exported about 125 tonnes of bamboo,
wood and grass products with a total value of RMB1.487
million in the first two months of this year, a year on year
increase of 31% and 40% respectively.
See:
http://nmg.news.cn/20240319/6ac78fdadf78474fa6f4b11d4dcc621c/c.html
 
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