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China Wood Products Prices

01-15th April 2006


US Dollar Exchange Rates of  23th March 2006
China Yuan
8.048
Report from China

Chinese companies ordered to obey local laws
The Chinese Foreign Ministry spokesman Qin Gang admitted recently that some rogue Chinese companies and individual citizens were involved in illegal logging in Myanmar but said it had asked these operators to obey local laws. He added that most of the business was conducted according to the agreements between companies from the two countries and conformed to local laws and regulations. Mr. Gang said the Chinese government was paying due attention to the problem and that rogue companies and individuals would be dealt with according to the law. 


China imposes tax on chopsticks and flooring 
The Ministry of Finance and the State Administration of Taxation have implemented changes to consumption tax items, rates and policies as of 1 April 2006. China imposed a 5% consumption tax on disposable wooden chopsticks and wooden hardwood flooring in order to reduce consumption of timber resources and protect the environment.

There are 6,000 solid-wood flooring manufacturers in China with an estimated total output of 85 million m2. Ten million boxes of disposable wooden chopsticks are sold domestically and about 6 million boxes are exported annually. These amount to 15 billion pairs of chopsticks. The production of disposable wooden chopsticks involves the use of over 1.3 million m3 of timber from China¡¯s forests every year.

Upbeat prospects for solid flooring industry
China¡¯s solid flooring industry saw the number of companies and production capacity declining 25% in 2005 due to increasing raw material costs. However, the average retail price for solid flooring rose 30 yuan per m2 in 2005, up 15% from 2004.

China¡¯s solid flooring industry is expected to develop stably over the next 10 years in line with international demand for flooring blanks. Only 500 solid flooring companies are expected to remain by 2010 with a sales volume of over 100 million m2. The market, brand and products will go global. Solid flooring products will be diversified with the three-layer solid flooring dominating the market. Brands will serve as consumers¡¯ main guidance when choosing solid flooring. High quality service will be one of the new competition strategies. China¡¯s solid flooring exports are projected to grow steadily over the next 5 years and the proportion of its exports will rise from 15% to 30%.

China slams trading partners on sanctions
China¡¯s Ministry of Commerce criticized the USA, EU and Japan over what it described as their increasing willingness to resort to anti-dumping petitions and other technical measures to block the flow of low-priced Chinese goods. The statement was contained in the Ministry¡¯s annual report on foreign market access. The report says China was the target of 63 different trade
investigations by 18 nations in 2005, up from 57 probes by 16 countries in 2004.

The Chinese report rapped USA for its ¡°unduly complicated¡± system for technical standards and
inspections and singled out the EU, China¡¯s largest trading partner, for its trade sanctions. The report says that Chinese products have been the biggest target of EU¡¯s anti-dumping investigations. It alleged that European standards on product safety, energy efficiency and chemical use have had the effect of restricting Chinese exports into the European market. Japan, the largest importer of Chinese agricultural products, was censured for a range of policies that allegedly keep Chinese farm goods and other products out of the Japanese market.

  

 Birch- and poplar-poplar ply have low yield rate due to small diameter and bad quality,and are therefore more expensive than okoume-poplar ply.¡¡

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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