China Wood Products Prices

1-15th September 2005

US Dollar Exchange Rates of  7th September 2005

China Yuan 8.09
Report from China

China is largest buyer of US hardwoods

The latest statistics from the US Trade Office shows that hardwood imports from China mainland, Hong Kong SAR and Taiwan P.O.C. rose 29% to yuan 3.6bn (US$500m) in 2004. Chinese hardwood imports from the USA have been growing rapidly in recent years. Hardwood products include sawnwood (2bn yuan, up 19%) and barks (700m yuan, up 55%). The rapid growth is due to demand from the interior decoration market, the solid wooden and solid composite floors industry, and the furniture exporting and domestic consumption sectors. The most preferred species are red oak, black walnut, tulipwood, alder, cherry and maple. US hardwood products are becoming popular in interior design and furniture manufacturing. Due to natural performance and speciality, these products are widely used in interior decoration of houses, hotels, business buildings, sports centres, gymnasiums, opera houses, culture centres and library. 

Chen Xizhen, Director of Southeast & Greater China Office of the US Hardwood Export Council (AHEC), indicated that growing hardwood imports are attributed to rapid economic development and rising domestic consumption in China. Rapid increase in per capita disposable income, booming business and housing building have tremendously expand the market for US hardwood products, especially in high grade furniture and interior improvement and decoration.

Good momentum in wooden door exports

According to China Customs, China’s wooden door exports totalled 110,877 tons in the first half of 2005. Exports from Guangdong Province accounted for 30,236 tons (27.3% of the national total). It was followed by the provinces of Jiangsu (15,226 tons, 14%), Fujian (10,904 tons, 9.8%), Shandong (10,022 tons, 9%), Zhejing (9,985 tons, 9%), Liaoning (9,133 tons, 8%), Shanghai (6,427 tons, 5.8%) and others (18,944 tons, 17.2%). The Liaoning and Fujian Provinces expected the fastest growth (51% and 48%, respectively). 

China wooden doors are mainly exported to the USA, Hong Kong and Japan. In the first half of 2005, China exported 42,781 tons of wooden doors to the USA (39% of the national total). Other destinations were Hong Kong (21,065 tons, 19%), Japan (17,229 tons, 17%), South Korea (5,455 tons, 4%), Canada (3,495, 3%), Turkey (2,973 tons, 3%), the UK and France (4,780, 4%) and others (13,099 tons, 12%). 

Implementation of new standards

China’s Ministry of Commerce has issued the “Technological Specification for Construction and Management of Merchant-System Hardware & Home Furnishing Market” (SB/T10397-2005). The standard will be implemented from 1 October 2005. 

The standard stipulates basic requirements for hardware construction and technology, fire fighting safety, merchant management, operation and management (quality, price and operation order) and service management. It is a normative document covering the whole process from market’s site selection to conceptual design, market operation and management and after-sales service. The specification will play an important role in standardizing market order, protecting consumers’ and operators’ legal rights and interests, and promoting construction market standards. 

China issues regulation on quarantine

Chinese Premier Wen Jiabao signed a regulation concerning quarantine of exported and imported goods. The regulation includes 63 items in six chapters, covering the quarantine of imported goods and exported goods, supervision management, and legal accountability. The regulation will take effect from 1 December 2005. 

Under the regulation, the State Administration of Quality Supervision and Quarantine (SAQSQ) shall establish a risk-control system for exported and imported goods. Imported goods which do not conform to individual and property safety, or environmental and health standard, shall be destroyed by burning. 

Guangzhou City Imported Timber Market

Shanghai Furen Wholesale Market

Hebei Shijiangzhuang Wholesale Market

Tian Jin City Huan Bo Hai timber Market

Shandong De Zhou 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