China Wood Products Prices
15-30th November 2004

 Report from China 

Trade in Wood Products  

Both the import and export value of China's wood products increased at a higher rate and with a further lowering trade deficit in the first three quarters. By the end of September of 2004 the total trade value of national wood products was recorded at US$23.533 billion, a year on year increase of 30%. The trade deficit in wood products was US$1.249 billion, a year on year decline of a modest US$194 million.

According to data from the State Forestry Administration, in the first three quarters the export value of major wood products rose 33% to US$11.142 billion. Wooden furniture continued to be the main export wood product valued at US$3.235 billion, up by 40%. The next ranked forest products were paper and paperboard, plywood, products made from rattan, reeds and herb. 

The export of wood-based panels has increased strongly compared to last year. Plywood exports rose 110% to 3.138 million cubic metres, fiberboard exports jumped by 377% to 160,200 tons, particle board exports rose 98.4% to 60,200 tons.  Local analysts think that both fiberboard exports and particleboard exports also increased significantly but exports were far less than imports. Fiberboard and particleboard imports were 636 700 tons and 315 600 tons respectively.  

In the first three quarters the import value of China's major wood products rose 27% to US$12.391 billion. Wood pulp, waste paper, paper and paperboard and paper products still were China's number one imported wood products valued at US$7.874 billion. Of the total, the growth rate of wood pulp imports increased the most and imports were 5.5011 million tons valued at US$2.721 billion, up 114%.  

Log imports were 19.695 million cubic metres valued at US$2.094 billion. Sawnwood imports amounted to 4.7 million cubic metres valued at US$1.05 billion.  

Analysts are calling for the country to develop greater capacity in dealing with international trade disputes. China's wood products trade is governed by international rules and practices and disputes such as anti-dumping, anti-subsidies, illegal logging and illegal trade, related to China's wood products trade, must be addressed if the country is to remain competitive internationally.

 International support for China's wood industry 

An agreement, signed recently between the International Finance Coporation (IFC) and Fenglin International Co. Ltd in Guangxi Nanning City, will provide US$43 million for Fenglin International to build and operate a medium density fiberboard mill and value-added processing capacity. The media report that this is the first IFC investment project in Guangxi.  

This project will provide 2000 jobs, increase GDP by Yuan 400-500 million and deliver some Yuan 10 million in revenue annually to the Bai Se prefecture. As a part of the deal the IFC will also table proposals in terms of improving company management and provide technological assistance for sustainable forestry management.  

In recent years the IFC has invested in many forestry projects in China. For example, it invested US$59 million in Plantation Timber Products (Leshan), a joint venture of Plantation Timber Products Group and the Sichuan Chuannan Forestry Bureau, US$57 million in Plantation Timber Products (Hubei) and US$50 million in Guangdong Jia Han forestry.  

Dr. Li Yao, of the IFC office in China, is on record as saying that the IFC is very interested in China's forestry sector and is seeking new appropriate projects. It was said that IFC treats the forestry sector as the same strategic resources such as steel and oil.

Imports thru Zhangjiagang  increase

In September log imports through Zhangjiagang Port totalled  314,900 cubic metres (up 96.5% compared with the previous month) and were alued at US$55.9176 million.   

Imports were from Malaysia (177 100 cubic metres, 56% of the total), Papua New Guinea (67 200 cubic metres, 21% of the total). Congolese logs were the main item from Africa moving ahead of imports from Gabon and rose 50% of total African log imports.  

Mixed hardwoods (locally known as miscellaneous timber) comprised a major part of sawnwood imports. However, Malaysian merbau imports amounted to 97,300 cubic metres, accounting for more than 50% of the total. At present, merbau imports through the Port are the largest. merbau  prices are around Yuan 2180 per cubic metre for large diameter timber and Yuan 1800 per cubic metre for medium diameter logs.  

The so called miscellaneous timber is generally lesser known species excluding species such as Luan, Kapur and Keruing. The miscellaneous timber is divided into red and white timbers and sold in to meet enduse needs of various manufacturers.

Russian logs seen in Zhangjiagang  

In recent years Zhangjiagang Port has attracted many domestic and foreign timber traders and it has developed as a log distribution centre because of the good port conditions, strategic location and low costs. Currently annual log imports through the port make up about one-fourth of the national total sea port log imports. The port authorities claim that there are more than 200 imported species handled by the port which has been dubbed "the imported log supermarket". 

Russian timbers, which make up some 50% of national imports, do not enter the port because they are small sized and occupy a large space. The port authority has recently improved the handling facilities, improved the capacity to receive vessels and has created favorable conditions for Russian timbers in order to adapt to the changes in the domestic timber market. Local experts predict that 60, 000 cubic metres of Russian logs will be handled through the port in 2004.

Wood charcoal exports banned 

It has been reported that China has banned the exporting wood charcoal as of October 1, 2004. The ban does not affect charcoal made from bamboo, nutshell according to a regulation jointly issued by the Ministry of Commerce, the General Administration of Customs and the State Forestry Administration.  

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 

 For information on China's forestry try: www.forestry.ac.cn

Abbreviations

LM        Loyale Merchant, a grade of log parcel	Cu.m         Cubic Metre
QS         Qualite Superieure	Koku         0.278 Cu.m or 120BF
CI          Choix Industriel	FFR            French Franc
CE         Choix Economique	SQ              Sawmill Quality
CS         Choix Supplimentaire	SSQ            Select Sawmill Quality
FOB      Free-on-Board	FAS            Sawnwood Grade First and
KD        Kiln Dry	Second
AD        Air Dry	WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through	MR              Moisture Resistant
the boards from one log are bundled	pc         per piece
together	ea                each
BB/CC  Grade B faced and Grade C backed	MBF           1000 Board Feet
Plywood	MDF           Medium Density Fibreboard
BF         Board Foot	F.CFA         CFA Franc
Sq.Ft     Square Foot	Price has moved up or down