US Dollar Exchange Rates of
25th
October
2025
China Yuan 7.12
Report from China
Wood-based panel Industry during "15th Five-Year
Plan"
The output of wood-based panels in China was 349
million cubic metres representing a year-on-year growth of
4% in 2024. The consumption of wood-based panel
products was approximately 330 million cubic metres,
increasing by 3.5% year-on-year.
The output value of China's wood-based panel products
has generally shown an increasing trend over the past 10
years with an average annual growth rate of 3%. China has
become one of the world's largest producers, consumers
and traders of wood and bamboo processing products.
The period of the 15th Five-Year Plan is a crucial time for
laying a solid foundation and making all-out efforts to
basically achieve modernisation. It is also an important
window for the wood-based panel industry to shape new
drivers of development and form new competitive
advantages.
The development of China's wood-based panel industry is
confronted with both opportunities and challenges but the
favorable conditions outweigh the unfavorable ones. The
general trend of high-quality development in wood-based
panel industry has not changed and the "timing" and
"trend" of development still creates an advantage.
Focusing on the ecological board industry, promoting the
optimisation of varieties, consolidating the foundation of
quality, enhancing brand influence and driving the
transformation and upgrading of wood-based panel
industry towards high-value, intelligent, green and
functional directions are key in achieving high-quality
development.
At present, the output of wood-based panel products in
China generally shows a phenomenon of oversupply.
Especially in the particleboard industry there is a situation
of overheated investment.
The extremely rapid growth of particleboard production
capacity has led to an overcapacity in a short period of
time. Resolving the temporary imbalance between supply
and demand in production capacity is the top priority. It is
suggested that more attention should be paid to green and
low-carbon development of wood-based panel industry
and it is believed that this will be a new track for the
transformation and upgrading of panel enterprises.
Experts suggest that wood-based panel production should
be determined by sales to bring prices back to rationality.
The importance of product quality and development of
high-value products along with serious analysis of markets
could lead to expanded applications of wood-based panel.
Through the dual efforts of policy innovation and resource
integration enterprises could promote the transformation
of industries to the advanced form of processing and
diversified integration.
See:
https://www.forestry.gov.cn/lyj/1/lcdt/20251022/646008.html
Large timber market planned for Qiandongnan
Prefecture
The administration in Qiandongnan Prefecture plans to
invest RMB1 billion to launch the Qiandongnan Timber
Market Construction Project further promoting the
transformation of the prefecture's forest resource
advantages into industrial advantages through extending
the industrial chain and increasing the added value of
products.
It has been reported that the project covers an area of more
than 33 hectares and is planned to build three core
sections: a wood processing zone, a trade logistics centre,
and a science and technology innovation centre. The
facility will create a modern wood industry cluster
integrating production, processing, sales and research &
development and help Qiandongnan Prefecture become an
important wood industry cluster in the southwest region of
China.
Data shows that the total volume of timber harvested in
the entire Prefecture reached 3.51 million cubic metres and
wood processing enterprises consumed 1.39 million cubic
metres of logs in 2024.
By the end of 2024 there were a total of 333 wood
processing enterprises in normal production and operation
throughout the prefecture.
The industrial output value of large-scale wood processing
enterprises in the entire Prefecture reached RMB1.685
billion in 2024, becoming an important support for local
economic development.
After the completion of the Qiandongnan Timber Market
Construction Project it is expected that the annual wood
processing capacity will reach 1 million cubic metres, the
annual transaction value will exceed RMB5 billion and it
will directly create more than 3,000 jobs.
Through the development of enterprises in the upstream
and downstream secors an integrated pattern of raw
material supply, production and processing, trade
circulation, scientific research & development and display
and sales will be formed promoting the transformation of
Qiandongnan Prefecture from a "major timber resource
prefecture" to a "strong timber industry prefecture".
The project will also drive the development of supporting
service industries such as logistics, finance, e-commerce
and packaging in the surrounding areas becoming a new
engine for regional economic growth and an important
support for rural revitalisation.
Qiandongnan Miao and Dong Autonomous Prefecture
(referred to as Qiandongnan Prefecture) is an autonomous
prefecture under the jurisdiction of Guizhou Province. It is
located in the southeast of Guizhou Province. It has a total
area of 30,282 square kilometres and governs 1 county-
level city and 15 counties. By the end of 2023, its
permanent resident population was 3.76 million, with
ethnic minorities accounting for 82%, mainly the Miao
and Dong ethnic groups.
In 2024, the regional GDP reached RMB143 billion,
growing by 6%. It is a national-level ethnic cultural and
ecological reserve, renowned as the "Prefecture of Songs
and Dances" and the "Hometown of a Hundred Festivals"
and boasts abundant natural and cultural landscapes.
Home furnishing industry still has structural growth
opportunities
Regarding the future development prospects of the home
furnishing industry the market for home furnishs is huge
but the contribution of leading brands is not high. There
are still structural growth opportunities and enterprises are
full of confidence in the development prospects of the
furniture industry and are optimistic about the long-term
development opportunities of the industry.
In terms of overseas market development, the US tariff
policy will have a negative impact on the foreign trade in
the short term. However, companies are increasing
efficiency and capacity expansion of its bases in Vietnam,
Mexico and also in the United States.
The impact of the national subsidy policy on boosting
consumption has also drawn much attention.
Since the implementation of the national subsidy policy in
2024 it has played a significant role in stimulating home
furnishing consumption. However, since the second
quarter of 2025 the impact of the national subsidy has
slowed.
The main drivers of profit growth in the sector will depend
on enterprises actively promoting internal ‘lean’
production and cost-effectiveness to enhance internal
operational efficiency. On the other hand, efforts will be
made to intensify technological innovation.
China - September Global Timber Index
Data from China's General Administration of Customs
showed that China's cumulative imports of logs and
sawnwood between January to August 2025 reached 37.50
million cubic metres, representing a year-on-year decrease
of 13%. The total import value amounted to 54.54 billion
yuan, down 16%.
In September six authorities, including China's Ministry of
Industry and Information Technology jointly issued the
"Work Plan for Stabilising Growth in the Building
Materials Industry (2025-2026)", which proposes demand-
side measures such as promoting the use of green building
materials in rural areas and matching the "Good Housing"
initiative to stimulate the domestic market.
The Plan seeks to integrate the building materials industry
into green building development and the national dual-
carbon goals and sets a target to generate over 300 billion
yuan in revenue from green building materials by 2026.
In other news, a report on the economic performance of
China's furniture industry in the first eight months released
by the China National Furniture Association showed that,
driven by a series of government policies, the domestic
consumer market remained active with positive growth.
While the furniture exports continued to decline year-on-
year, the overall performance still remained higher than
the level seen during the same period in 2023.
In September 2025 the GTI-China index registered 51.7%,
an increase of 0.9 percentage point from the previous
month and was above the critical value (50%) for 2
consecutive months indicating that the business prosperity
of the timber enterprises represented by the GTI-China
index expanded from the previous month.
In September both production volume and new orders
(domestic and international) in China's timber sector
showed slight growth compared to the previous month.
As for the twelve sub-indexes, eight indices (production,
new orders, export orders, purchase quantity, purchase
price, import, employees and market expectation) were
above the critical value of 50%, while the remaining four
indices (existing orders, inventory of finished products,
inventory of main raw materials and delivery time) were
below the critical value.
Compared to the previous month the indices for new
orders, export orders, purchase quantity, purchase price,
import, employees and market expectation increased by
0.8-5.9 percentage point(s) and the indices for production,
existing orders, inventory of finished products, inventory
of raw materials and delivery time declined.
See: https://www.itto-
ggsc.org/static/upload/file/20251022/1761099830162631.pdf
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