China Wood Products Prices

1-15th March 2005

Russian Imports set to climb  

Over the past 10 years, China's log imports have increased at a faster pace than most other commodities and the pace of growth in imports from Russia has been at record levels.  

For example, the volume of logs imported by China increased by a factor of about seven from 3.19 million cubic metres in 1996 to 26.31 million cubic metres 2004. Over the same period, the volume of Russian timber imports by China soared about 31 times from 0.53 million cubic metres to 17.02 million cubic metres and the average annual increase was over 50%.  

According to the latest statistics from Chinese Customs, the volume of Russian logs imported by China increased again in 2004 and was up just ver 18% on 2003. With China's imports of Russian timber increasing so rapidly the proportion of Russian timber in China's total logs imports also grew swiftly from 16.6% in 1996 to 64.7% in 2004. 

Russian logs imported by China are mainly softwoods which account for about 87% of the total imports the balance is hardwood timber. According to the latest statistics from Chinese Customs, imports of Scots pine and Korean pine topped the list in 2004, accounting for around 57% of the total. Following the pine imports were imports of larch and white pine (spruce and fir), accounting for 22% and 20.7% of the total respectively.  

The hardwood species imported in log form from Russia were diverse while oak and ash were the main species accounting for 18% and 16% respectively of the total imports of hardwood timber from Russia.  

Sawnwood is another item China imports from Russia. Although the volume of Russian sawnwood imports are less than those of logs, the pace of growth in imports has been as rapid and the proportion of Russian sawnwood in total sawnwood imports has increased.  

For example, China imported just 158, 000 cubic metres of Russian sawnwood in 2000, accounting for only 4.3% of total sawnwood imports in China. However, by 2004 Russia was amongst the major sawnwood supply countries and in terms of ranking had jumped from the number seven supplier in 200 to become the third most important supplier in 2004. 

According to Chinese analysts there are several reasons for the success of Russian exports to China. 

The softwood logs from Russia are mainly from natural forests and are of large diameter and are of good fine quality, better than the China's domestic softwood timbers.  

The main species imported by China are similar to those found in the north-east of China and in Inner Mongolia such as Korean pine, Scots pine, Larch and White pine. The supply of these species from China's forests has declined significantly due to implementation of Natural Forest Protection Program and Chinese manufacturers and consumers are familiar with the wood properties. 

Prices for imported Russian timber are competitive and because China has a land link with Russia and transportation is facilitated and additionally, Chinese forest enterprises have transferred production to Russia.  

Prices for Russian timber is relatively low compared with the other softwood exporting countries. For example, the average cost, insurance and freight (CIF) of Korean pine and Scots pine from Russia was only US$73 per cubic metre in 2004, but that for radiate pine from New Zealand were almost US$93 per cubic metre. Local analysts also say the wood quality of plantation grown radiate pine is lower than that of Korean pine and Scots pine from Russia.  

With regards to the hardwoods imported from Russia, these are also mainly from natural forests and are of large diameter and fine quality giving and high mill recovery.   

These timbers are good raw material for mid and high-grade solid furniture, solid floor, decorative veneer and mouldings. Chinese manufacturers generally know the species of hardwoods imported from Russia and consumers and prices are lower than hardwood from North America or beech from Europe.  

Guangdong's 2004 Forest Products Imports 

According to information from Guangdong Customs, Guangdong Province's imported forest products totaled 24.72 million cubic metres (log equivalent) in 2004, (including timber, wood based panels, pulp, waste paper, paper and paperboard) a year on year increase of over 8%,.  Of the total log imports were 1.72 million cubic metres, (+15%) and sawnwood imports reached 3.72 million cubic metres (+2.3%).  

According to analysts, the main reason for the slower than usual rate of import growth is that more and more Russian timber was utilized but these imports from Russian have not been included in the statistics because Russian timber do not pass Guangdong Customs when entering into the province.

In addition, some imported timber consumed in Guangdong province enters at other ports in neighboring provinces and also is not recorded. In fact, Guandong timber consumption has not slowed in Guangdong province as consumption is still around 40 million cubic metres annually.  

It is reported that the value of furniture exports from manufacturers in the province reached US$4.46 billion in 2004, a year on year increase of 23.85%, accounting for 40% of the total exports in China and despite the US anti-dumping. At present, the furniture industry is the dominant industry driving development of forestry industries in Guangdong province.  

Guangxi  - major production area 

There are rich forest resources in Guangxi province, which is, historically, one of major timber production areas in south of China. At present, the annual production of timber is kept at between 4~6 million cubic metres, of which the annual cutting quota is about 4~4.3 million cubic metres, the additional volumes are those from any over cutting and from branchwood (mainly for fuel).  

The timber species in Guangxi province include Masson's pine, Chinese fir and eucalyptus, accounting for 40%, 35% and 20% of the total timber production respectively. The production of other species only accounts for about 5% of the total production and includes Chinese evergreen chinquapin, birch, schima, maple and camphor tree.  

The timber is mainly from plantations so the Natural Forest Protection Program has had little effect on the timber production. Pine timber is mainly from the south of Guangxi province, such as in Nanning, Chongzuo, Qinzhou, Wuzhou and Hezhou prefectures. Chinese fir production areas are located in the north of Guangxi, in such places as Liuzhou, Guilin, Hechi and Baise prefectures.  

Unfortunately, say local technologists, the quality of the timber from Cuangxi is low. Low grade logs and pulpwood account for the largest proportion of production and large diameter logs is low.  

Timber from Guangxi is mainly sold to Guangdong province, to areas in the middle south of China and in coastal provinces such as Zhejiang. With the development of the wood processing industry in Guangxi, log exports have fallen but the export of wooden finished products and semi-manufactured products has been increasing.  

In the past years, Cuangxi imported little timber, except for some rare timbers from Southeast Asia such as rosewood and padauk which were imported through Vietnam and most of this raw material came through Shanghai and Guangdong before ending up in Guangxi.  

Impregnated Paper Laminated Floors in Henglin 

It is reported that the production of impregnated paper laminated floors was 83.8 million square metres in Henglin, Changzhou City, Jiangsu province, accounting for 46% of the total production in China.  

Fast growing plantations apparently provide the main materials for the substrate of impregnated paper laminated floors.  

According to statistics, one cubic metre of timber from the natural forest can produce 20 square metres of solid floors but one cubic metre wood based panel made from fast growing timber can produce 80 square metres of impregnated paper laminated floors.  

Since the middle of the 1980s when Sweden developed impregnated paper laminated floors for the first time, the product had occupied the global flooring market. China is one of the main markets in the world where the production and consumption of impregnated paper laminated floors is increasing rapidly. The average pace of growth in consumption reached 85% annually during 2001~2003 and three big production bases (Changzhou, Shenyang and Changsha) have been established in China. 

Henglin, located in Wujin district Changzhou City, is the main production base in this district and the production capacity of Henglin is reported as accounting for about 90% of the total of Changzhou. It is said that there are about 150 enterprises in Henglin township producing impregnated paper laminated floors with an annual output of 80 million square metres.  

It is considered by experts that the development of production of impregnated paper laminated floors in China has taken the lead in Asia and the quality of products being produced in China is said to be world class. The high production capacity and low cost structures will ensure that China can maintain its competitive position in the international markets.  

Fiberboard Industry Forum 

It has been reported that "the Forum for the Fiberboard Industry in Asia and the Pacific Region" was held in Beijing recently. The forum was organized by fiberboard industry committee of Chinese Association of Forest Industry and the MDF Association of the Asia and Pacific Region. The purpose was to promote an exchange between Chinese domestic enterprises and foreign colleagues.  

There are representatives from more than 20 domestic famous fiberboard corporations and 20 foreign MDF enterprises in Asia and the Pacific region attending the forum. The director of Chinese Association of Forest Industry, Mr. Zhang Senlin, gave a speech on "forest management in China and available timber resources in future".  

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 

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