China Wood Products Prices

16-31th January 2006

US Dollar Exchange Rates of  23th January 2006

China Yuan 8.065
Report from China

African logs lead imports in Zhangjiagang Port 
Log imports through Zhangjiagang Port in the eastern Jiangsu Province were 238,000 m3 ($45.3 million) in November 2005, up 17% in volume and 6% in value from October 2005 but down 16% in volume and 9% in value from the same month in 2004.

Imports came mainly from Africa (99,075 m3, 42% of imports), PNG (77,751 m3, 32%) and Malaysia (61,151 m3, 26%). Log imports from Gabon ranked first with 97,409 m3, doubling the import level seen in November 2004. Log imports from Cameron (notably ayous and sapelli), shipped in containers,were only 3,345 m3, up 280% from November 2004. The chart below shows imports of okoume (mainly from Gabon) through Zhangjiagang Port in 2005.

Zhangjiagang Port’s okoume imports in 2005 (000 m3)

Taiwan’s Samson Group expands in China
Taiwan’s Samson Group, a large furniture manufacturer, has established two new production
bases in China. One base was established in Dongguan City, Guangdong Province (south China)
and the other in Jiashan City, Zhejiang Province (east China). Samson Group came to China in 1980 and is the first Taiwanese furniture company with factory in Dongguan. The Group, which has 6,000 employees and 9 branch factories, produces 200 million pieces of furniture annually for the export markets. Its products are made of high-grade US panels, such as cherry and maple.

China’s furniture industry faces lower profits
There are reports that China’s furniture industry saw lower profits in 2005 affected by higher production costs. Analysts indicate that one reason is price increases of timber raw materials due to declining timber imports. Analysts estimate that timber imports from Indonesia fell from 960,000 m3 in 2004 to 600,000 m3 in 2005, while those from PNG
declined from 1.3 million m3 in 2004 to under 1 million m3 in 2005. The average unit price for timber climbed 15%-18% in 2005. Furthermore, prices for other materials, such as dope and adhesives, rose rapidly together with energy and transportation costs. 

According to a local furniture association, most manufacturers, especially panel furniture firms, have not raised furniture prices due to strong domestic competition. Only few furniture firms have adjusted the prices of their products. For example, the average price of redwood furniture had risen 30%. Analysts indicate that some of the firms producing branded furniture would increase furniture prices if raw material costs continue to rise. 

Guangzhou City Imported Timber Market

Shanghai Furen Wholesale Market 

Shandong De Zhou Timber market

Hebei Shijiangzhuang Wholesale Market

Tian Jin City Huan Bo Hai timber Market

Combi-plywood Prices (US 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