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China Wood Products Prices

16-31th August 2010


US Dollar Exchange Rates of  26th Aug 2010
China Yuan 6.7998
Report from China
 



  Special Committee to assist timber importers
China Timber and Wood Products Circulation Association (CTWPCA) (former China Timber Circulation Association) has applied to establish a Special Committee for Timber Imports. The initiative came from the timber and wood product importing companies which have been facing more challenges since China became one of the world¡¯s leading timber importers. CTWPCA has listed four main challenges faced by the importers which the new committee will address.

The first challenge is to cope with the new environmental protection requirements for combating illegal timber logging and trade in illegal timber. These international requirements are proliferating and there is a high risk of failing to meet some of them. In this regard, an organisation is needed to offer guidance and support for traders, and also to monitor changes and law enforcement.

The second challenge is that currently there is neither adequate statistics nor a system for stock evaluation at the national level that would help prevent over or under stocking in the country.

The third challenge is to address corruption in the timber importing trade.

The fourth challenge is to set a responsible procurement system for timber imports.

The association would also aim at promoting and developing the Chinese timber importing and trade to international standards.

China hosts conferences on wood standardisation
The Sixth International Conference on Timber Standardisation Science and Practice and the Ninth Annual Conference for Wood Technical Committee of International Standardisation Organisation (ISO/TC218) were held in Beijing on 2-6 August 2010. The International Conference on Wood Standardisation was held for the first time in China and hosted jointly by the China National Standardisation Committee, State Forestry Administration, Timber Industry Research Institute under the Chinese Academy of Forestry and the International Center for Bamboo and Rattan.

At the conference, the latest developments in international timber standardisation science and practice were discussed. Six workshops were held in the fields of standard terminology, logs, sawnwood and processed wood, test methods, wood products, and discarded wood. Altogether three international standards were approved, including those initiated by China on General Technical Requirements on Solid Wood Flooring.

The State Forestry Administration of China attaches great importance to forestry standardisation. Currently, there are 23 national forest Standardisation Technical Committees. In addition, there are national standards, industry standards, local standards and enterprise standards to supplement the forestry standard system which covers 300 national standards for forestry and 800 industry standards for forestry. These standards have been instrumental in the standardisation of forestry production and construction sector in China.

China is actively involved in international timber standardisation development which is important in removing barriers to international wood processing technology trade and thus promoting the development of Chinese timber industry.

Promoting wooden building materials in rural areas
China National Forestry Products Industry Association launched the nationwide ¡°Wooden Building Material to Countryside¡± programme to promote use of wooden products such as floors and doors in rural areas. Pilot projects under the programme will be implemented in Shangdong, Hubei, Shanxi, Chongqing,, Sichuan, He¡¯nan, Hu¡¯nan, Guangdong, Zhejiang, Jiangsu, Fujian and Heilongjiang.

The initial pilot projects will be completed by 31 January 2011. Some 14 wooden building material production enterprises will take part in the pilot activities and consumers in rural areas will enjoy discounts if they buy products with the programme vouchers. During the pilot, enterprises will research and develop production of suitable products for rural consumption at the lowest possible prices.

Guangdong log imports hit record high
According to the latest statistics from Huangpu Customs, logs imports of Guangdong Province totalled 719,000 cu.m during the period from January to July 2010. Log imports were 60% higher compared to the same period last year, hitting a record high.

Of the total, log imports from the EU increased 33% to 263,000 cu.m, while log imports from ASEAN countries increased 160% to 146,000 cu.m. These two regions accounted for 57% of the total log imports. In addition, log imports from Australia rose by 190% to 47,000 cu.m and from Mozambique by 170% to 40,000 cu.m.

According to analysts, there are two main reasons for the increase in log imports. Firstly, timber product demand in some parts of the European and ASEAN markets is growing as consumers¡¯ purchasing power is improving in line with the economic recovery. Secondly, domestic demand for timber is increasing driven by booming real estate, furniture and flooring markets.

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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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