China Wood Products Prices

16-30th June 2006

US Dollar Exchange Rates of  29th June 2006
China Yuan 7.998
Report from China 

Robust growth for China’s paper consumption
Local analysts predict that China’s consumption of paper and paperboard will reach 76 million tons by 2010 and exceed 100 million tons by 2020. By 2020, analysts say, the USA, Europe and China would account each for one quarter of the global consumption of paper and paper
board.

Wood chip exports fall amid raw material shortage
Wood chips are one of China’s major exported wooden products. There are more than 100 manufacturers and exporters of wood chips in China. The chart shows that exports of wood chips peaked to 1.95 million tons ($154 million) in 1997 and have been mostly declining since
then, falling to 910,000 tons ($96 million) in 2005. The main reason for the export decline is shortage of raw materials due to rapid development of the wood-based panel and paper making industries. Japan (51% of total exports), Taiwan PoC (28%), Korea (16%) and Hong Kong SAR (5%) were the main export markets in 2004. China is expected to increase imports of wood chips in tandem with the expansion of the panel and paper industries.

Daya opens largest particle board plant in Asia
Daya Wood Industry has recently opened a new particle board plant in Sanming City, Fujian. The one billion yuan plant has an annual output capacity of 500,000-600,000 m3, the largest particle production line in Asia. The plant can manufacture environment-friendly E1, E0 or super E0 products. The production line uses logging residues (branch wood), remainders from timber
processing and small diameter timber from intermediate cutting as raw materials. In order to secure raw materials supply, Daya Group have plantations of its own and in partnership with forest companies and farmers. In addition, Daya plans to establish a 200,000 ha of raw
material bases.

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