US Dollar Exchange Rates of 30th April 2010
China Yuan 6.8250
Report from China
Russia ¨C China trade active
Timber imports (919 893 tonnes) via the Suifenhe inland point of entry for the first quarter of 2010 amounted to almost 60% of all cargo through the port.
At the end of 2009, Russia did not increase the tariff on log exports as announced earlier in the year so prices did not increase. This came as good news to Chinese importers. The brighter prospects in the Chinese economy contributed to the increase in domestic market demand and increased imports.
Of the wood products imported via Suifenhe, the proportion of sawnwood has been increasing. This increase is the result of Chinese and Russian investment in processing capacity, stimulated by the threat of rising log export duties.
The forestry industry is regarded one of the key industries to support local economic development in the Far-East Region of Russia and China is the largest importer of wood products from the region. The complementary relationship between Chinese and Russian timber market is having a huge impact on the economic development in the Far-East Region of Russia.
Mixed signals from tropical log import trends
Timber imports through the Zhangjiagang sea port during the first quarter 2010 jumped over 25% to a total of 836,800 cubic metres worth US$ 174.4 mil. Of the total imports, logs accounted for some 832,000 cubic metres with just a small quantity of sawnwood making up the balance.
Bulk logs shipped via Zhangjiagang dominated the timber imports originating mainly from Oceania, Africa and Southeast Asia.
Log imports from Africa were about 249,800 cubic metres, of this, 184,800 were from Gabon. Log imports from Oceania were around 405,600 cubic metres, of this, 261,000 were from PNG and a further 70.900 were from the Solomon Islands. Log imports from Southeast Asia were around 150,400 cubic metres and of this, 121,800 were from Malaysia, significantly up on imports of the first quarter 2009.
Furniture flows to ASEAN
After the China-ASEAN Free Trade Area came into effect in January 2010, well-made furniture from Shenzhen has been high selling products in the ASEAN market.
Data from the Shenzhen Inspection and Quarantine Bureau shows that furniture exports from Shenzhen amounted to US$ 450 million in the first two months of 2010, up 153% compared with the same period in 2009.
The ASEAN market represents vital market area for Shenzhen accounting for 50% of the total furniture exports. The furniture exports to Singapore alone were valued at US$ 120 million, almost 50% of the total exports to ASEAN countries. The exports to Thailand grew fastest by tenfold from 2009 to US$ 46 million.
Influenced by the strong demand for furniture in the ASEAN market, the traditional USA and EU market took a smaller share of Shenzhen furniture exports, falling from 20% to 15%.
Furniture exports by the large enterprises jumped dramatically when the FTA came into effect, however, furniture exports by the medium and small sized enterprises increased only marginal.