US
Dollar Exchange Rates of 31th Oct.
2007
China Yuan
7.528
Report from China
China unveils policies for forest industry development
The ¡®Key Points of China¡¯s Forestry Industry Policies¡¯, a document jointly compiled by the State Forestry
Administration, the State Development and Reform Commission, the Ministry of
Finance, the Ministry of Commerce, the State Administration of Taxation, the
China Regulatory Bank and the China Securities Commission, aims to support China¡¯s forest industry
development. The new policies announced in the document include: an exemption or reduction
of income tax on enterprises undertaking agriculture or forestry projects; a refund on value-added tax of products made
from timber residues and low quality and small diameter fuelwood; and an exemption on import tariffs and valueadded
tax of imported equipment by enterprises undertaking investment projects. Additionally, the
government will encourage forestry enterprises to search overseas for new business opportunities (See TTM 12:19).
Zhangjiagang Port chalks higher imports of logs
According to statistics from Zhangjiangang¡¯s entry-exit inspection and quarantine bureau, log
imports through the port continued to grow through 2007. From January to September, log
imports through the port were 1794 batches, or 2.46 million m3 and worth USD613 million.
This resulted in a 23% increase in batches, 32% rise in volume and 40% jump in value from the
same period in 2006. Imported logs through the port were mainly from Africa, Southeast Asia
and Oceania. Log imports from Africa and Oceania rose but those from Southeast Asia
(except Myanmar) fell compared to the same period in 2006. In addition, log imports shipped in
containers through the port grew rapidly and rose 104% to 91,300 m3. It is expected that log
imports in containers will continueto increase due to its lower cost and faster delivery.
Sapele price surges as stock depletes in Guangzhou Market
The price for sapele recently rose dramatically due to the limited amount of stock on the
Guangzhou Yuzhu Timber Market. The reason for the price rise was that the sapele
imported in the second half of 2006 was lower in price than African sapele imported throughout 2007. At that
time, traders in China did not sign international purchase contracts with African traders, as it
was difficult to predict the markets for 2007. Now, it is difficult to import
sapele. Timber traders in China must deliver their old stock to buyers due to the limited stock. As a result, the price for
sapele has risen dramatically. The current price for sapele is RMB8300 yuan per m3 and there are currently only
1000 m3 of sapele stocks in the Guangzhou Yuzhu Timber Market.
Prices for Russian logs climb at Manzhouli Port
According to the Manzhouli Customs agency, average prices for imported Russian logs through Manzhouli Port
rose 17% during the last eight months. Log imports through the port were 78.32 million m3, valued at US$780
million, up 19% in volume and 38% in value from the same period in 2006. The import prices for various logs
showed an overall increasing trend. The price for scots pine rose 17%, one of the largest price increases for logs
during the period. This is reported to be a result of the higher Russian log export tariff. Local experts believe that
the timber supply and demand relationship between China and Russia will not change in the near
future even thoughthe Russian tariff has increased.
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