US Dollar Exchange Rates of 30th September. 2009
China Yuan 6.8270
Report from China
Focus on domestic marketing
Because of the global financial crisis and consequent weak
overseas demand, China’s furniture exports have fallen.
Export oriented furniture producers have adapted to the
changed market conditions and now sell more of their
products on domestic market.
China’s furniture production is mainly concentrated in
Guangdong, Zhejiang and Sichuan provinces. Furniture
production in these three provinces reached RMB287.8
billion last year and this represented 45% of the national
total.
Guangdong Province ranks first in furniture production
and exports. There are about 6000 production enterprises
with an estimated 1 million employees.
In 2008 the total value of furniture output from
Guangdong Province was RMB184 billion or 28% of the
national total. Of this furniture exports stood at US$11.5
billion.
Zhejiang Province ranks second in the furniture production
and exports. There are an estimated 3000 furniture
producers employing around 300,000 people.
The value of furniture production in Zhejiang Province in
2008 was RMB73.8 billion and of this US$5.5 billion was
exported.
The third largest province for furniture production and
exports is Sichuan with some 3000 companies that
produced around RMB30 billion in 2008. The value of
Sichuan’s furniture exports in 2008 reached US$130
million.
Furniture exports to Russia
In the first seven months of 2009, the value of furniture
exports through the northern port of Manzhouli to Russia
rose 14% to US$1.947 million and analysts say there is
scope for further increases.
Furniture exporters in this northern area are mainly from
Jiangsu Province and the Inner Mongolia Autonomous
Region. In the first seven months of 2009, the value of
Jiangsu’s furniture exports rose 20 percent to US$959 000,
accounting for 49% of trade through the port.
The value of furniture exports by Inner Mongolia
Autonomous Region’s enterprises grew almost 5 times and
represented about 30% of the cargo through the port.
According to local experts, Russian furniture production is
rather small and the country depends on imports. The
Russian market for furniture has been estimated at around
US$2 billion annually and imports account for some
US$750 million.
Log imports up
According to data from Qingdao Customs, in the first
seven months of 2009 log imports through Shandong Port
were 1.32 million cu.m valued at US$130 million, up 110
percent in volume and 51 percent in value. The main
sources were New Zealand, Russia, Australia and the US.
Log imports from these countries account for almost 90%
handled by the port. Log imports from New Zealand were
757 000 cu.m, almost double that over the same period last
year and accounted for 58% of the port’s throughput.
Local experts say the main reasons for the increase is the
falling price for logs on the international market and the
impact of domestic economic stimulus measures which are
now having an effect.
In terms of both quantity and species domestic demand in
China is strong. Demand for timber has increased because
of the development of major infrastructure programmes,
urban real estate construction and plywood and furniture
production for the domestic market.
The gap between domestic timber supplies and demand is
widening and reliance on imports has increased.
Wood based panel imports climb
According to the statistics from Heilongjiang Customs, in
the first eight months of 2009 wood panels imports
through Heilongjiang Port were valued at US$77.3
million, up 95% in value terms over the same period last
year.
The reasons for the steep increase in panel imports are said
to be mainly because of the increased export tariff on logs
applied by Russia. Traders in Russian timber are now
investing in downstream processing and export wood
panel rather than logs.
Favorable Russian policies to encourage the development
of domestic processing and the zero tariff on sawnwood
exports has resulted in investment by Chinese companies
who now have processing bases in Russia and ship the
wood products back to China.
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