China Wood Products Prices
16-31th July 2004

Dollar Exchange Rates of 23th July 2004
China Yuan 8.28
Report from China    

Timber prices ease  

Analysts report that prices for timber have tended to weaken slightly since June.  

Prices for logs and constructional timbers such as Korean Pine, White Pine, Larch and Scotch Pine and southern Mason Pine and Fir in the production areas in the northeast have steadied. Large size logs and good quality timber achieved a good market price but there was no strong price trend. 

In the consuming centres, prices for timber were steady and, while showing no real decline, did not move. In some big cities such as Shenzhen, Guangzhou, Shanghai, Hangzhou and Nanjing and southeastern coastal region, some prices for imported hardwood logs and sawnwood were a little higher than in northern inland prices, being up by between 3% and 7%.  

Local analysts think that the reason for movements to slow is that the brake is being applied to the pace of economic growth through regulation policies especially on investment in fixed assets. Overall there is a growth tendency towards weaker demand, say analysts.  

However, local analysts point out that upward pressure on prices will continue because oil prices remain high and the shipping capacity shortage is increasing freight rates. 

Sales of impregnated paper laminated floors 

Impregnated paper laminated floors (IPLF) were 'exotic' and virtually unknown in the Chinese market before the mid 1990s, but this has changed. Currently there are over 600 domestic enterprises producing impregnated paper laminated floors and output of the domestic sector is said to be around 100 million square metres per year. There has been huge investments to impregnated paper laminated floor production and modern production technology is being employed. Domestic production captures around 90% of the domestic market and analysts say the market prospects are bright. 

Because Chinese made impregnated paper laminated floors perform well and are competitively priced markets have opened in Europe, Oceania, Southeast Asia and Middle East countries. Export production is reportedly centred in east China notably the coastal regions and brands include Power Dekor, Parko, Shengda, Shengjia, Sunway, Huili and Kronoshenhua. 

Producers of IPLFs in Europe and N. America and other producing countries have seen the potential for sales in China but the competition is fierce.  

After just 10 years of market development, China is now the largest producer and consumer of impregnated paper laminated floors and has a massive and integrated industrial distribution chain supported by more than 40 large-scale factories. 

China's top and even second tier enterprises generally have international high-tech processing equipment and large scale production capacity for producing impregnated paper laminated floors and the products are comparable with international brands.  

China based enterprises have an advantage in terms of costs. In China, labour, land, fuel, water, electricity and raw materials are much lower cost than most other countries and this gives domestic producers an advantage.  

Timber through Tianjin port  

According to the latest statistics from Tianjin Customs, during the period January to April, timber imports through the port were valued at US$ 7.04 million, up 60% value compared with the same period last year. During January to April 2004 the average price for imported timber grew by around 10% compared with the same period last year. According to analysts the two main reasons for the increase were: 

First, imports of processed timber increased rapidly. According to statistics, imports of sliced or peeled veneer were US$5.08 million, a massive jump compared to last year.  

Secondly, there was a change in countries supplying the timber products. The source of imports has been transferred from being largely Asian countries to the US, Canada and European countries. According to the data, during the period January to April, the value of imported timber the US through the port came to US$5.4 million, a big increase on last year.  

Big buyer of US hardwood 

Information from the recent annual convention held by American Hardwood Export Council (AHEC) in Shandong Qingdao City shows that China continues to be the largest single buyer of American hardwoods.  

American hardwood exports to China have been growing fast in recent years and in consecutive years China has been the biggest market for US hardwoods.  

The total value of American hardwood imported by Chinese mainland and Hongkong broke a record of US$323 million in 2003, up by 3.4% compared to 2002.

Of the total, the value of sawnwood exports to China were US$180 million, a year on year increase of 22%. Imports to the Chinese mainland grew 30% but imports by Hongkong fell last year. According to Mr. Chen Xizhen, Chief executive officer of AHEC Southeast Asia and Greater China, the export value of America hardwood products to China reached US$138 million in the first quarter of 2004, a year on year increase of 37%.  

Of the timbers imported into China Red Oak ranked first in value followed by Red Birch, Tuliptree, Black Walnut, Cherry, Maple, Ash, and White Oak. On the basis of volume, Red Birch ranked first.  

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