US Dollar Exchange Rates of
China Yuan 6.4814
Report from China
First half 2021 real estate development
A press release from the National Bureau of Statistics
reports real estate growth and sales in the first six months
of 2021. Between January and June investment in all
categories of real estate increased 15% year on year,
higher than in the same period in 2019. Investment in
residential properties increased 17% in the first half of
The pace of investment has slowed every month this year
as the government is trying to take some heat out of the
market by tightening mortgage practices. One
consequence of this is that loan approvals are taking much
longer now compared to the early months of the year.
Between January and June this year land purchased by
developers was down almost 12% year on year.
A further press release from the National Bureau of
Statistics reports retail sales in the first half 2021 jumped
23%. Sales of building and decoration materials (builders¡¯
woodwork) rose around 33% in the first half while sales of
furniture rose 30%.
Retail consumption contributed almost 62% to China¡®s
GDP in the first half of 2021, just above pre-pandemic
levels. Online sales, which have been boosted by
lockdowns and social distancing restrictions, also grew
year on year. China's economy grew slightly more slowly
than expected in the second quarter, weighed down by
higher raw material costs and new COVID-19 outbreaks.
GGSC-CN Index Report (June 2021)
The Global Green Supply Chain (GGSC) for forest
product is a global platform voluntarily established by
enterprises, research institutes, industry associations,
international organisations and others to implement ¡°an
initiative to build a collaborative network for a global
green supply chain for forest products¡±. The GGSC-CN
reports on sentiment among participating enterprises in
In June 2021, China's PMI index declined to 50.9. The
index has remained above 50 for four consecutive months
indicating that the economy continues to recover. In June
the wood production and manufacturing industry
maintained a good momentum. Wood production
continued steadily, domestic demand remained stable,
however the price of raw materials accelerated, inventory
continued to decline and cost pressure increased.
The GGSC-CN comprehensive index
for June registered 53.3 (55.0 for last June and 45.7
for June 2019). The index has been above 50
for four consecutive months indicating operations of the
enterprises represented by GGSC-CN index continues to
The GGSC enterprises reported the following
Hard to get stable supply of solid wood raw
materials and rising prices of raw materials
Difficult to purchase wood
The raw materials for rubber manufacturing
increased greatly, resulting in the increase of
During the rainy season and off-season of timber
purchase in Guangdong Province, the quantity of
timber is less than before.
Products in short supply:
Black walnut, poplar logs, okan, red oak, flooring
Commodity of which the price has increased
Teak, black walnut,
fiberboard, okan, taun,veneer, melamine, formaldehyde,
Commodity for which the price has declined
In June 2021 four out of five sub-indices of the GGSC-CN
fell and one was unchanged. The production index
registered 61.1, a decline from the previous month but
remained above 50. The new order index
registered 55.5%, a drop from the previous month but still
reflecting the ability of enterprises to secure orders.
The new export order index reflecting international trade
registered 50.0%, a large increase of 20 points from the
previous month showing orders from abroad increased
The main raw material inventory index registered 38.9, a
decline of 11 points from the previous month.
The employment index registered 50 a sharp drop from the
previous month. The supplier delivery time index was
50, same as the previous month.
Centre for upgrading wood products for international
It has been reported that the Ministry of Commerce has
established a national demonstration centre for
transformation and upgrading of wood products for
The new centre is in Mulin City one of main timber
production and distribution areas in Heilongjiang
Province. Forest cover in Heilongjiang Province is 62% of
the total area and has an estimated stocking of 220 million
cubic metres. In addition to local resources timber is
sourced in Russia with around 1 to 2 million cubic metres
Mulin City is an important base for imported timber
processing and exporting. The National Quality
Supervision and Inspection Center for Furniture and Wood
Products effectively promotes trade from Heilongjiang
with Russia and Europe. The industry has adopted a ¡®two
resources and two markets¡¯ strategy for the wood products
processing and industries in the city.
China House Furnishing Products Boao Forum
The first China House Furnishing Products Boao Forum
will be held in the Hainan Asia Forum International
Conference Center 7 to 9 September 2021. The theme of
the Forum is ¡°Changing the situation¡± which aims to find
a new engine for green economic development against the
background of the disruption of the global economy.
Brazilian loblolly pine logs imports
It has been reported that over 5,000 cubic metres of
Brazilian loblolly pine logs were recently imported
through Putian Port for the first time. According to Fuzhou
Customs in Fujian Province between January and June
2021 log imports through Putian Port were 318,000 cubic
metres valued at US$50.4 million, up 8% in volume and
34% in value over the same period of 2020.
In order to ensure smooth Customs clearance of imported
Brazilian loblolly pine logs Putian Customs undertook
quick and complete on-site supervision and inspection and
shortened Customs clearance time.
Guangxi forest tenure exchange transactions surge
The Guangxi Forest Tenure Exchange Center was
launched in 2016 and since its transaction value has
exceeded RMB13 billion currently. In the first half of
2021 the exchange saw transactions rise to RMB2.4
billion, 89% over the same period of 2020.
At present, Guangxi Forest Tenure Trading Center has a
total of 123 state-owned forest farms and 55 forestry
enterprises and its business covers Guangdong, Yunnan,
Fujian and Shandong provinces. In the past five years, the
trading centre has increased sales revenue of RMB647
million for the transaction participants, saved the purchase
cost of RMB133 million and effectively promoted the
development of forestry industries.
In March 2021a China-ASEAN wood trading platform
was officially established to improve the upstream and
downstream supply chain in Guangxi Province and other
parts of the country.
In the next five years, Guangxi Forest Tenure Trading
Center will shift from single variety trading to many
commodities trading and build a RMB100-billion-level
China-ASEAN commodity trading platform.