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China Wood Products Prices

01-15th January 2011

US Dollar Exchange Rates of  15th Jan 2011
China Yuan 6.5831

Report from China 

 Timber imports through Zhangjiagang port down in volume but up in value
Timber imports through the Zhangjiagang sea port in the period from January to November 2010 totalled 2.96 million cu.m, worth US$776.4 million. Timber imports declined by 0.6% in volume but increased 13% in value over the same period in 2009. Of the total imports, logs amounted to 2.94 million cu.m and sawnwood 22,100 cu.m. Imports eased towards the end of the year, following a 21% growth in volume during the first half of 2010.

Of the total, 2,83 million cu.m were imported in bulk carriers and 133,800 cu.m in containers. The share of container shipments of the total imports is steadily increasing.

Other ports close to Zhangjiagang experienced growth in timber imports. For example 2.37 million cu.m of timber were imported through the Taicang port, up 40% over the same period in 2009. Some 2 million cu.m were imported through the Jingjiang port and 1 million cu.m through the Yangzhou port.

Tropical hardwoods constitute bulk of imports through Zhangjiagang port
From January to November 2010, bulk carrier imports amounted to 1.06 million cu.m from PNG (accounting for 37% of the total), 0.54 million cu.m from Gabon (19%), 0.38 million cu.m from Solomon Islands (13%), 0.35 million cu.m from Malaysia (12%), 0.32 million cu.m from Cameroon (10%), 0.11 million cu.m from the Republic of the Congo (4%), 0.54 million cu.m from Equatorial Guinea (2%). During the same period, 0.11 million cu.m of logs and 22,100 cu.m of wood panel were imported in containers from the Central African Republic, Cameroon, Mozambique, the Republic of the Congo and Uruguay among others.

From January to November 2010, imports of Malaysian timber grew significantly to 347,000 cu.m, up 41% over the same period last year. In contrast, imports from Gabon fell sharply by 40% from last year as a result of the log export ban imposed since May 2010.

Timber imports by containers doubled to 133,800 cu.m. Of the total, 45,617 cu.m were sapelli accounting for 35% and 16,346 cu.m were wenge accounting for 12%.

Some changes in the shares of imported timber species were seen during the period. Okoume is still the major species imported through the Zhangjiagang port, however, only 311,700 cu.m were imported from January to November this year, down 29% over the same period last year. Of the total, 236,500 cu.m originated from Gabon, 36% down from last year. Imports of okan from Africa and taun from Oceania amounted to 213,800 cu.m and 179,100 respectively. Okan with large diameters from Gabon has been popular material for flooring in China. Some valuable tree species such as padauk, rosewood and kevazingo have suffered from low demand in the Chinese market.

US continues to impose antidumping duties on wooden bedroom furniture from China
The US International Trade Commission has decided to extend antidumping duties on wooden bedroom furniture from China for another five years. The custom duties range from 43.23% to 216.01%.

The antidumping duties on Chinese wood bedroom furniture imports imposed since 2004, cover US product custom codes 94035090.40, 94035090.80 and 70099250.00. Lower duties are imposed on those companies that have responded to the US enquiries.

China is main destination of forest product exports from Chile
According to the Ministry of Agriculture of Chile, forest product exports totalled US$3,568 million in the period from January to October 2010, up 19% over the same period in 2009. The major export products included wood pulp (US$1,979 million), logs (US$774 million), sawnwood (US$440 million), and wood chips (US$269 million). The main export destinations were China (16%), the US (12%), Japan (9%), Republic of Korea (7%), Italy (7%), the Netherlands (7%), Mexico (6%), Taiwan PoC (3%), Peru (3%) and France (3%).

First large scale OSB production line begins operation in China
In Jingmen, Hubei Province, Bao Yuan wood company Ltd. has established a production line for Oriented Strand Board (OSB) with an annual capacity of 220,000 cu.m. The installation worth US$27 million was built by Dieffenbacher involving a total investment was RMB460 million.

Second phase of “Natural Forest Protection Programme” to be implemented
At the executive meeting of the State Council held on 29 December 2010, it was decided that China will embark on the implementation of the second phase of the Natural Forest Protection Programme 2011 – 2020. During the first phase of implementation, the area under forests expanded by 10 million hectares representing a 3.7% increase while the growing stock gained 725 million cu.m. In addition, ecological conditions, biodiversity and local people’s livelihoods have improved.

Altogether 11 counties in Danjiangkou Reservoir area are included in the second phase of the Natural Forest Protection Programme. According to the plan, forest area will increase 5.2 million hectares, growing stock will gain 1,100 million cu.m, and forest carbon stock growth will be around 416 million tonnes.

Some of the major measures to be taken under the programme included:

1) Strengthen protection of forest resources. Continue restraining commercial cutting of timber on upper reaches of Yangtze River, middle and upper reaches of Yellow River. Further reduce timber harvests in major state owned forest areas of Northeast China and Inner Mongolia.

2) Intensify reforestation and tree planting in order to expand the size of the forest area.

3) Improve living standards of local people, employment, income and social security system.

At the meeting, principal subsidy policies were defined such as continuing the forest management and protection subsidy, improving social insurance subsidy and increasing forest cultivation subsidy, among others. The central government’s budget for the implementation of the second phase of the programme is RMB 219.5 billion.

• Wood Market Prices in China (01-15,Dec 2010)

• Wood Market Prices in China (16-30,Nov 2010)

• Wood Market Prices in China (01-15,Nov 2010)

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