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China Wood Products Prices

16-28th February 2006


US Dollar Exchange Rates of  23th February 2006
China Yuan
8.048
Report from China

 
China log imports surge to 30 million m3
China imported over 29.37 million m3 of logs in 2005, up 12% from 2004. Softwood logs accounted for 68% of the imports, half of it from Russia (9.53 million m3, notably
red pine). Other softwood species included Russian larch and New Zealand whitewood and radiata pine. Red pine is mainly used for construction and engineering works. Russia is by far China¡¯s top log supplier with 20.04 million m3. 

Tropical log imports remained stable at around 7 million m3 in 2005. Malaysia and PNG were the largest tropical log suppliers, followed by Myanmar. Imports from the last two countries are growing rapidly. PNG is poised to overtake Malaysia as China¡¯s largest tropical log
supplier.

China consolidates position as major ply exporter
Log imports are used in the manufacturing of plywood and value-added products in China. The country continued to increase considerably the exports of plywood in 2005, reaching 5.61 million m3, up over 30% from 2004. This consolidates its position as one of the world¡¯s largest exporters of plywood together with Malaysia and Indonesia. China¡¯s main export markets in 2005 were the USA and Japan.

Chinese Council raises annual logging quota
The Chinese State Council has set the national annual forest logging quota (annual average consumption of forest resources) at 248.16 million m3 for the Eleventh Five-Year Plan 2006-2010, up from 223.1 m3 in 2001-2005. The Council made some recommendations to further strengthen conservation and management of forest resources:
1. Use gas and other timber substitutes;
2. Control the consumption of fuel wood;
3. Develop commercial forests, especially fast growing and high yielding forests in the eastern and southern regions;
4. Promote the integration of forest and pulp and paper industries and encourage downstream processing of timber;
5. Improve the utilization rate of forest resources from the current 60%;
6. Control the environmental impact of large timber processing industries in the northern and the western regions.

Lower tropical log imports through Zhangjiagang Port
Log imports through Zhangjiagang Port in the eastern Jiangsu Province declined to 2.55 million m3 ($482 million) in 2005, down 8% from 2004. About 97% of the imports (2.47 million m3 valued at $480 million) were shipped in bulks, down 9.1% (down 4% in value) from
2004.

Imports came mainly from Africa (1 million m3, 41% of imports, notably from Gabon and Republic of Congo), PNG (804,499 m3, 32%) and Malaysia (425,548 m3, 26%). PNG and Gabon (770,937 m3) overtook Malaysia as the largest log shippers in 2005. Log imports from
Africa have been increasing while those from Southeast Asia have been declining. Imports from Gabon increased while imports from other West Africa countries, such as Congo, Cameroon and Equatorial Guinea, declined.

Log imports from Africa come from many countries and consist of numerous batches with small volumes and several new species. The main end-uses are plywood, furniture, decoration and construction timber. Okoume is mainly used in plywood manufacturing while merbau and padouk are used in furniture and flooring. Merbau was once the main flooring timber. However, merbau imports plummeted to 56,000 m3 in 2005, sharply down from 634,000 m3 in 2004.

Birch- and poplar-poplar ply have low yield rate due to small diameter and bad quality,and are therefore more expensive than okoume-poplar ply. 

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

Source: ITTO'  Tropical Timber Market Report

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