US Dollar Exchange Rates of
20th
November 2013
China Yuan 6.0922
Report from China
Manufacturing PMI stable
The National Bureau of Statistics in a recent press release
(www.stats.gov.cn/english/pressrelease/t20131202_40293
1634.htm) has shown that in November, China's
manufacturing purchasing managers index (PMI) was
51.4, remaining steady at the same level as in October.
The October PMI represented the highest point since May
2012. The PMI has stayed above the threshold (50) for 14
consecutive months adding weight to claims that the
manufacturing economy of China is stable.
In terms of size of enterprises, the PMI of large-sized
enterprises was 52.4, slightly up month-on-month as has
remained above the threshold (50) for 19 months. The
PMI for medium-sized enterprises was 50.2 the same
level as last month when, for the first time the index
topped above 50.
The PMI for small-sized enterprises at 48.3 in November
was down by 0.2 points month-on-month and has been
below 50 for four months. In November, of the five subindices
comprising the PMI, two increased, while that of
the other three fell.
Spot trading platform for wood products launched
The Chinese Ministry of Industry and Information
Technology has announced the establishment of a Timber
and Wood Products Spot Trading Platform. This
development has been jointly sponsored by the China
Timber and Wood Products Distribution Association
(CTWPDA) and the China Forestry Property Exchange
Co., Ltd.
This trading platform will be open nationally and will
provide a comprehensive timber industry service platform
integrated with logistics and information trade flows. The
platform will also encompass and a trading centre, an
information centre and a pricing centre to promote
domestic and international market development.
It is anticipated that the new trading platform will reduce
transaction costs in the industry. The objective is that the
platform will promote the rapid and orderly development
of the timber industry across the country.
The platform provides the opportunity for Chinese timber
importers to form purchasing alliances to enhance their
bargaining abilities so that Chinese companies will have a
better negotiating position in the international timber
trade.
Fibreboard and plywood futures market at Dalian
Commodity Exchange
The China Securities Regulatory Commission has
approved the development of a fibreboard and plywood
futures trading market within the Dalian Commodity
Exchange. China is one of the largest fibreboard and
plywood producers and consumers in the world. The
output and consumption of fibreboard in 2012 was 55.54
million cubic metres and the output and consumption of
plywood in 2012 was 140 million cubic metres.
Prices for fibreboard and plywood have been fluctuating
over the past years as raw material costs increase and
demand has been volatile. This volatility has had a
significant impact on the production and management of
upstream and downstream enterprises.
The development of the fibreboard and plywood futures
trading platform will provide for the formation of a
transparent fibreboard and plywood pricing mechanism
will eliminate some price fluctuation risks and will
facilitate better forest resource management to promote the
steady development of the forest products industry.
Log imports dramatically up in first three quarters of
2013
China‟s demand for timber has been increasing since the
beginning of 2013 after a quiet period in 2012 and the
increase is largely the result of demand from the housing
market.
Log imports increased dramatically in the first three
quarters of 2013 growing to 33.26 mil. cubic metres
valued at US$6.83 bil., up 16 percent in volume and 23
percent in value over the same period in 2012. The
average price for imported logs rose 5 percent to
US$205.4 per cubic metre.
The top log suppliers in the first quarter of this year were
New Zealand (up 34%), Russia (down 8%) and the USA
(up 48%) at 8.31 mil. cubic metres, 7.78mil. cubic metres
and 4.04 mil. cubic metres respectively.
In the first quarter of the year imports from New Zealand
exceeded those from Russia for the first time.
Weakening international demand for China¡¯s plywood
Between January and September this year China‟s
plywood exports rose by just 4% to 7.75 mil. cubic metres.
But, international demand for Chinese manufactured
plywood has weakened. For example, the USA is the
largest market for China‟s plywood but Indonesian and
Russian suppliers have captured market share from China
in this market.
China‟s plywood exports to the USA fell 15% to around 1
mil. cubic metres between January and September 2013
and China‟s market share in the US declined to 13% in the
first three quarters of 2013 from 16% in the same period in
2012. In addition, China‟s plywood exports to Saudi
Arabia and the Emirates in the first three quarters of this
year also declined.
However, in many provinces plywood production for
export has been increasing resulting in bitter competition
amongst domestic enterprises. There are significant
differences in output and exports of plywood in the
various provinces. Shandong Province and Jiangsu
Province dominate the plywood export trade.
In the first three quarters of 2013, plywood exports from
Shandong Province rose 8% to 3.60 million cubic metres,
accounting for 46% of national exports.
Plywood exports from Jiangsu Province grew 6% over the
same period and accounted for 28 percent of national
exports. In addition, plywood exports trends in Guangdong
Province and Guangxi Province is still positive. Plywood
exports from Guangxi Province rose 44% to 455 700 cubic
metres and exports from Guangdong Province grew 8% to
412 300 cubic metres.
Consignment of plywood from Japan fails
formaldehyde emission standard
Recently, a consignment of imported eight layer plywood
was seized by the Ningbo Port Inspection and Quarantine
Authorities.
The consignment of plywood was imported from Japan
and seized because formaldehyde emissions, at 13.0mg/L,
exceeded the Chinese national standard of 5.0mg/L. The
Inspection and Quarantine Authorities ordered the
company importing this plywood to arrange incineration
of the entire consignment.
The Inspection and Quarantine Authorities have urged
importers to strengthening management and purchasing
specifications to ensure imported goods meet Chinese
standards.
US lifts ban on China¡¯s wooden craft imports
A ban in the US on wooden craft imports from China
introduced in 2005 has recently been lifted. Some 25 wood
products enterprises in Jiangxi Province filed an objection
to continuation of the ban and were successful so can now
resume trade with the US.
The ban by the US was put in place as longhorn beetle
(Callidium villosulum Fairmaire) infestations were
discovered in China‟s wood products. Chinese enterprises
have reportedly introduced strict monitoring of production
raw materials to avoid infestation.
 
|
