US Dollar Exchange Rates of
China Yuan 7.0654
Report from China
Falling demand for laminated rubberwood panels
Demand in China for imported laminated rubberwood
panels has fallen as both international and domestic
demand has weakened.
Thailand is the major supplier to China but, in the words
of an analyst, ¡°the laminated panel market is experiencing
a cold winter". Prices for panels have fallen considerably
and many mills in Thailand report they cannot sustain
production with such low prices and many have stopped
Some domestic importers have reduced their imports and
are anxious to clear stocks even at a loss so as to close the
year without having to face the falling demand in the New
Factories in China using imported rubberwood laminated
panel are finding international demand for finished
products has weakened and many, say analysts, are
operating at a loss.
For more see:
China propose use of amended CITES certificates
China has informed the CITES Parties that as of 1 July
2019 new versions of the permits and certificates were
used by CITES Management Authority in China. Further
they have advised that the older versions will remain valid
until 1 January 2020.
Forms for the new permits and certificates
There are many new forms covering: Import permits,
Export permits, Re-export certificate, Introduction from
the sea certificate, Certificate for Multiple cross-border
transfer of musical instruments which contain restricted
fauna and flora parts, Travelling exhibition of specimens
certificate, Multiple cross-border transfer of privatelyowned
live animals (certificate of ownership); Erhu (a
two-stringed bowed musical instrument) carried in as hand
luggage by individuals abroad (personnel and household
For certificate types, currently, both electronic and paper
certificates will be used at the same time except for the
following two cases where only electronic certificates can
be issued: 1) specimens of species included in Appendix I
which do not meet the exemption conditions; 2)
introduction from the sea.
There are enhanced security features in the new permits
and certificates. The new document has a number of anticounterfeiting
measures such as an almost invisible
Queries on certificates can be obtained by scanning the
two-dimensional barcode on the certificates or going to
https://cites.singlewindow.cnl/certver/cites and inputting
the permit or certificate security number and serial
Questions on the new permits and certificates can be
directed to the CITES Management Authority of China at:
For more see:
New domestic standards for solid and composite
Two local standards for solid wooden flooring (T/ZZB
0005-2019) and composite wooden floor (T/ZZB 0006-
2019) had been published recently in Zhejiang Province to
replace the 2015 versions. The new standards will be
implemented as of 30 November 2019.
The southern China wood panel industry
The 4th China (Guigang) Timber Processing Industry
Development Summit was recently held in Guangxi
Zhuang Autonomous Region.
Experts and entrepreneurs from all over the country
discussed how to promote the transformation and
upgrading of wood processing industries to improve
competitiveness. The theme of the meeting was "Getting
Clusters, Strengthening Leading Enterprises and
Integrating to the east into the Guangdong-Hong Kong-
Macao Greater Bay Area ".
Although Guigang City has only around 3.5% of forest
area of Guangxi Zhuang Autonomous Region there are
more than 3,500 wood processing enterprises in the city
including more than 2,000 veneer producers with an
annual output of 10 million cubic metres.
There are 576 plywood enterprises with an annual
of 12 million cubic metres or 25% of the total in the
In the first three quarters of 2019 the total output value of
the timber processing industry in the City reached RMB26
billion. It is expected that the output value of the timber
sector in 2019 will exceed RMB35 billion. With taxes
running at over RMB1 billion the wood processing
industry has become the pillar of the Cities finance.
Guigang city has become an important national plywood
and veneer production and processing centre and a major
forest product distribution centre and was hailed as "the
southern capital for wood panels" by the China National
Forestry Products Industry Association.
Challenges in production and trading
A group of manufacturers and academics have identified
some major challenges in production and trading.
A large number of enterprises have stopped or relocated
The main reasons are related to environmental regulations,
land ownership and the perceived risk of investment in the
High taxes and labour costs
Enterprises dare not invest and many enterprises have
transferred to off-shore but even off-shore risks are high
and there are big difficulties in securing land and skilled
The market has been disrupted.
Trading volumes and wood market prospects have peaked
and there is little companies can do but wait out the storm.
Financing is uncertain
There is no norm or standardization when seeking finance
and credit lines.
Government imposes more and more restrictions on
The tax burden on industry is high and some enterprises
cannot meet environmental requirements and it is difficult
and expensive to relocate.
Competition from alternatives
The development of competitive wood-based panels and
emerging materials is rapid and the impact in the panel
market is significant.
Foreign policy impacts
The influence of foreign policies on wood product
procurement will become much stronger.
Experts pointed out that the current traditional wood
trading market is more difficult to operate, mainly due to
First, to extend business links and up-stream and downstream
integration. Secondly, expand added value
production and improve services especially through
embracing on-line trading through getting involved in
logistics. In this respect, Jiangsu Wanlin and Zhangjiagang
Jingang logistics are good examples of what can be