China Wood Products Prices

01-15th October 2005

US Dollar Exchange Rates of  7th October 2005

China Yuan 8.09
Report from China

China records trade surplus in forest products

As the foreign trade of China’s forest products has developed rapidly in recent years, the country’s trade deficit has sharply shrunk. According to China Customs, the total value of foreign trade in national forest products was US$32.33 billion in 2004, with the deficit felling to US$350 million, US$1.63 billion less than in 2003. In the first half of 2005, the total value of foreign trade of forest products rose almost 18% to US$18 billion. Of the total, the value of exports grew 31% to US$9.2 billion recording for the first time ever a trade surplus of US$420 million.  

The trade surplus was achieved by optimizing the structure of imported and exported forest products. Imported forest products were mainly resource products such as logs, sawnwood, wood pulp and waste paper, paper and paper products, while exported forest products comprised higher value-added downstream products and labour‑intensive products including furniture, paper products, small wooden products, wood-based panel, rattan, grass and reed products.  

China will take measures to further promote international trade in forest products. These measures include:

§   Study the potentials of forest products in terms of regional layout, structural adjustment and market circulation.

§   While consolidating exports position of traditional forest products with international competitive capacity, exploit and export cash forest products, bamboo products, flowers and forest food.

§   Promote and develop timber processing industry actively, especially fine and downstream processing industry by exploiting intellectual property products, undertaking research, developing new varieties and strengthening cultivation of seed and seedling.

§   Strengthen standardisation, improve product quality and international competitive capacity. Work out and revise quality standards of forest products in line with international practice. Improve national and industrial standards. Formulate production technical regulations. Improve products check and inspection system.

§   Identify leading enterprises and create position brand products internationally through optimization and upgrade of forestry industry.

§   Improve the detection of supply and demand changes as well as import and export trends for forest products. 

Hefty expansion of wooden door exports

According to China Customs, wooden door exports reached 124,300 tons (US$168 million) in 2003, 150,000 tons (US$200 million) in 2004 and 110,900 tons in the first half of 2005. It is expected that wooden exports will top 200,000 tons by the end of 2005 if this rate of growth prevails. The main reasons for the export growth are:

§   High mechanical level, foreign investment and introduction of advanced technology and equipment;

§   Low labour cost and competitive cost for resources such as energy;

§   Original designs, various styles and fine manufacturing technology. 

Guangzhou City Imported Timber Market

Shanghai Furen Wholesale Market

Log imports through Zhangzhou Port decline

Zhangzhou Port is the largest distributing center of imported logs in the Fujian Province. However, log imports there have been declining in recent years. The port’s log imports (mainly radiate pine from New Zealand and Australia) reached 628,000 m³ in 2003, making up 82% of Fujian’s total log imports. In 2004, the port’s log imports fell 49% to 304,000 m³. Imports dropped further 49% to 91,500 m³ in the first half of 2005. Local experts blame the continuous log price increases for the log import decline.

Zhangzhou City is an important plywood production base with an annual output of 700,000 pieces valued at 500 million yuan. All Zhangzhou’s imported logs are used by the plywood production industry. Some 80% of plywood is used as cement form in construction and sold mainly in the Shanghai and Guangdong markets. The remaining 20% of the plywood is exported or used in the manufacturing of furniture. According to some reports, 50% of plywood enterprises in Zhangzhou City have closed due to sharp increases in log prices.

Hebei Shijiangzhuang Wholesale Market

Tian Jin City Huan Bo Hai timber Market

Shandong De Zhou 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