China Wood Products Prices
16-30th June 2004

Dollar Exchange Rates of 25th June 2004
China Yuan 8.28
Report from China  

A Stronger Industry

According to the State Forestry Administration, the total value of output of the national forest sector reached Yuan 586 billion in 2003, a year on year increase of over 26%. At the moment, China has a broad based and integrated industrial system, a extensiveindustrial chain and a wide variety of products.  The sectors include primary industry, second industry and tertiary industry activities from tree planting, economic forest (cash tree) cultivation, flower cultivation, timber logging, wood and bamboo processing, wood-based panel production, forest products chemical processing, wood pulp and paper making, forest byproduct collection and processing as well as forest tourism. 

The data shows that the volume of wood products has increased over the past five years. The production of bamboo was 970 million stems in 2003, a year on year increase of 45%. The volume of wood-based panels reached 45.5 million cubic metres, a year on year increase of 55%. The production of furniture was about 1.3 billion pieces, a year on year increase of 28%. The production of solid floors totalled 86.43 million square metres, a year on year increase of 74% while the production of rosin amounted to 443,300 tons, a year on year increase of 12%.  

The recent rapid development of some sectors such as economic forests (plantations and farms trees),the processed bamboo industry, forest tourism, the cut flower industry and forest food and forest medicine have become the new stars of the forest sector. It has been reported that the direct income from forest tourism in 2003 was Yuan 9.6 billion and that the total value of the flower industry was Yuan 181.4 billion. In contrast the annual value of the bamboo industry was just Yuan 40 billion.  

Behind the success of the forest sector growth is the private sector which is now the main force in the forest sectorOver the past 5 years some 87% of the total investment in forestry and related industries was from private capital. In 2003 total output value of the private forest sector increased to 49% up from the 40% in 2002.  

Forestry in China is now the main engine for rural economy development and is the main engine driving the rise in farmer income in many rural areas. According to statistics 40% of farmer incomes are from forestry industry in 158 major forest rich regions.  In Jilin province alone the economic value generated from the development of forest resources exceeds Yuan 60 billion and some 3.5 million people depend on forestry for their livelihood. Today, forestry in China is the third largest industry after the automobile and petrochemical industries.

 Consumption Solid Floors  

In recent years, the competition in China's wood floors market has become very fierce especially between suppliers of the various species and between suppliers of impregnated paper laminated floors, solid floors and composite floors.  

There is also fierce competion in the different regions of China.  With the progress in the  implementation of western China development strategy, sales of wood floors have surged as income levels have grown especially in the medium and small size cities.  

According to a recent study of the consumption of wood floors it is in the major cities of Yangtse river delta such as Shanghai, Suzhou, Wuxi, Changzhou and Hangzhou City where the market is concentrated. 

In recent years domestic manufacturers have improved their products and flooring technology and the performance of locally made flooring has improved.  

Because eastern regions are leading China's economic development and because cities in Yangtse river delta have invested heavily in hotels and commercial buildings the consumption of solid floors has grown.

Jiangsu and Zhejiang provinces have become important centres for the domestic manufacturing and processing of wood floors, in the Nanxun district of Zhejiang province,  production of wood flooring is a major industry and production costs and overall price level in this location are said to be lower than other in regions.  

Nanxun, City of Wooden Flooring 

The output value of wooden flooring in Nanxun district of Huzhou City, Zhejiang Province grew to  about Yuan 4 billion last year and production in the district accounts for some 50% of the national total wooden flooring production.  

A development plan for the wooden floor industry in Nanxun district was released by the government of Nanxun district early this year. The aim is the creation of  "The City of China's Wood Floors".  

By 2007, the total output value of wooden floors is forecast at Yuan 10 billion at which level it would account for around 10% of the district's industrial economy.  

Sales of the large-scale enterprises by 2007 could reach more than Yuan 6 billion and the district government will aid the future development of 1~2 enterprises whose annual sales could exceed Yuan 1 billion. There will be 3~5 enterprises whose annual sales could exceed Yuan 500 million, and 5~10 enterprises whose annual sales could exceed Yuan 300 million, all will get district support. 

According to available statistics, at the end of 2003, the district had over 330 wood flooring manufacturing and processing enterprises. The total national production of wooden floor was reported as 120 million square metres in 2003 of which Nanxun district contributed around 45 million square metres at a value of Yuan 4 billion.  

Wood Flooring Production at 216 mil. sq metres  

According to recently released statistics, China's wooden flooring production reached 216 million square metres in 2003, a year on year increase of 20% (179.6 million square meters in 2002) 

Of the total, impregnated paper laminated floors was 120 million square metres, a year on year increase of 26% (95 million square meters in 2002). Solid floors came to 65 million square metres, a year on year increase of 8% (65 million square meters in 2002). Solid composite floors came to 16 million square metres, a year on year increase of 38% (16 million square meters in 2002). Bamboo floors amounted to 4 million square merers, a year on year increase of 10% (3.6 million square meters in 2002).  

New Standard for log inspection 

A national standard (GB/T 144-2003) for Log Inspection, revised by the China Timber Standardization Technology Commission and approved and released by the General Administration of Quality Supervision, Inspection and Quarantine became effective as of 1st May, 2004. 

The new log inspection rules were revised in terms of log measurement (scaling) and dimension over measure amongst other items in order to standardise the recording of data.

 Guangzhou City Imported Timber Market  

Shanghai Furen Wholesale Market 

 
Hebei Shijiangzhuang Wholesale Market  

Shandong De Zhou Timber market

Tian Jin City Huan Bo Hai timber Market