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China Wood Products Prices

16-31th January 2011


US Dollar Exchange Rates of  04th Feb 2011
China Yuan 6.
5585

Report from China 



  China announces stipulation on re-export permits for
sawnwood processed from imported logs

On 31 December 2010, the Ministry of Commerce
announced the authorities responsible for the issuance of
re-export permit licenses in 2011. Re-export permit
licenses are issued for sawnwood processed from imported
logs. Licensed enterprises shall apply for re-export permits
from one of the authorised institutions:

Heilongjiang Department of Commerce is responsible for
issuing permit licenses for exporting enterprises in the
Province covering the clearance ports of Dalian and
Suifenhe Customs.

Inner Mongolia Autonomous Region Department of
Commerce is responsible for issuing permit licenses for
export enterprises in the Province with the clearance ports
of Manzhouli, Erlianhot, Dalian, Tianjin and Qingdao
Customs.

Xinjiang Uygur Autonomous Region Department of
Commerce is responsible for issuing permit licenses for
export enterprises in the Province with the clearance ports
of Alashankou, Tianjin and Shanghai Customs.

Fujian Department of Foreign Ecomomy and Trade is
responsible for issuing permit licenses for export
enterprises in the Province with the clearance ports of
Fuzhou, Xiamen, Putian and Zhangzhou Customs.

SFA forecast steady growth in China¡¯s consumption of
wood-based panels

According to the Twelfth Five Year Plan for the Forest
Industry compiled by the State Forest Administration
(SFA), China¡¯s consumption of wood-based panel will
continue to grow. In 2015, consumption of wood-based
panels is projected to be 146 million cu.m, accounting for
one-third of the world¡¯s total. Her annual consumption of
plywood, fiberboard, particleboard and blockboard in
2015 will reach 48 million cu.m, 48 million cu.m, 19.5
million cu.m and 21.5 million cu.m respectively.

In the Twelfth Five Year Plan for the Forest Industry,
consumption of laminated veneer and oriented strand
board is also forecast to increase steadily. Investments in
improved production technologies will support the
development of wood-based panel production in China.
Flat-press production line is anticipated to become the
dominant technology for producing fiberboard and
particleboard. The fiberboard production capacity for
continuous flat-press production line will account for 30%
of the total production capacity in 2015.

Linyi City is crowned the Capital of China Wood Panel Production
Linyi City in Shangdong Province, Pizhou City in Jiangsu
Province, Jiashan City in Zhejiang Province and Wen¡¯an
City in Hebei Province are the four major wood-based
panel production bases in China. Linyi City was recently
named the ¡°Capital of China Wood Panel Production¡± by
the China Forestry Product Industry Association.

In Linyi City, there are more than 18,000 wood panel
processing enterprises which have shifted production from
common single particleboard, fiberboard and plywood
production to concrete form panels, high-end furniture
panels and multi-layer plywood. These products are sold
to 25 countries and regions around the world. In 2010, the
value of total annual production in Linyi City was
RMB7.55 billion and 6.995 million cu.m in volume, up
26% from 2009. Production of wood-based panels in Linyi
City makes up 34% of the national total.

The development of the China¡¯s forest product industry
has been rapid during the Eleventh Five Year Plan period.
The output of forest product industry in China in 2005 was
only RMB840 in value and increased to RMB1 trillion in
2006. For 2010, the output of forest product industry is
expected to exceed RMB2 trillion. The output of Chinese
wood-based panel, wooden furniture and wood flooring
industries is ranked first in the world.

Sanmenxia City gets RMB4.5 billion investment in furniture base
The government of Sanmenxia City in Henan Province
and China Min¡¯nan Investment Group (Hong Kong) Co.
Ltd signed a cooperation framework agreement on 15
December 2010.

According to the agreement, China Min¡¯nan Investment
Group (Hong Kong) Co. Ltd will invest RMB4.5 billion to
establish a large scale furniture production base in
Sanmenxia City. Upon completion, it will be the largest
furniture base in Middle China. The establishment of the
furniture base will play an active role both in promoting
down-stream timber processing and introducing the latest
technologies in furniture manufacturing.

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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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