US Dollar Exchange Rates of
China Yuan 6.4792
Report from China
Substantial rise in log imports ¨C but not tropical logs
According to China Customs, log imports in the first half
of 2021 totalled 31.26 million cubic metres valued at
US$5.265 billion (CIF), up 29% in volume and 48% in
value. The average price for imported logs was US$167
(CIF) per cubic metre, up 15% from the same period of
Of total log imports, softwood log imports surged 41% to
24.81 million cubic metres, accounting for 78% of the
national total. The average price for imported softwood
logs was US$142 (CIF) per cubic metre, up 24% from the
same period of 2020.
According to local experts, the main reason for the
increase in the volume of softwood logs imports was that a
large quantity was imported from European countries in
the first half of 2021. It has been estimated that about 500
million cubic metres of damaged European spruce will
have to be harvested up to 2024 and much of this will be
imported by China via the China-Europe Railway Express.
Germany, the second largest log supplier
The volume of log imports from most countries soared in
the first half of 2021 and Germany became the second
largest supplier of logs to China. Log imports from
Germany rose 95% to 6.43 million cubic metres in the first
half of 2021. China¡¯s log imports from Uruguay and
Brazil surged to 1.10 million cubic metres and 0.94
million cubic metres respectively which contributed to the
increase in overall log imports.
New Zealand was the top log supplier to China in the
half of 2021 accounting for 32% of total log imports. Log
imports from New Zealand totalled 10.02 million cubic
metres in the first half of 2021, up 58% from the same
period of 2020.
Russia ranked third in terms of log exports to China
3.40 million cubic metres in the first half of 2021, up 3%,
and accounting for 11% of total log imports in the first
half of 2021.
Australia no longer a major log supplier to China
China¡¯s log imports from Australia plummeted to 628,855
cubic metres in the first half of 2021 from 2.09 million
cubic metres in the first half of 2020.
China¡¯s log imports from Australia plunged because of a
ban on imports as the quarantine service in China once
again detected pests in a log shipment. Since the beginning
of 2020 the quarantine service has repeatedly detected live
pests such as the long horn beetle, Cerambycidae and
jewel beetles, Buprestidae in logs imported from Australia.
In accordance with national quarantine laws and
regulations the infected logs have been treated and the
exporters notified of the non-conformance with
international standards and required to investigate the
causes and take improvement measures to avoid a
Slight decline in hardwood log imports
China¡¯s hardwood log imports in the first half of 2021 fell
1% to 6.81 million cubic metres (22% of the national total
log imports). The average price for imported hardwood
logs in the first half of 2021 was US$256 (CIF) per cubic
metre, up 14% from the same period of 2020.
Of total hardwood log imports, tropical log imports were
3.77 million cubic metres valued at US$9.98 billion CIF,
down 8% in volume but up 4% in value from the same
period of 2021 and accounted for 12% of the national total
log import volume.
The average price for imported tropical logs was US$265
CIF per cubic metre, up 14% from the same period of
Before its log export ban Myanmar was a major source of
tropical logs for China. However, China¡¯s log imports
from Myanmar have been declining for many years.
This trend reversed in the first half of 2021when China¡¯s
log imports from Myanmar soared 391% to 6,410 cubic
metres in volume and were valued at US$8.1 million. The
average price for imported logs from Myanmar rose 14%
to US$1,264 (CIF) per cubic metre in the first half of
Decline in tropical log imports in the first half of 2021
China imported tropical logs mainly from Papua New
Guinea (27%), Solomon Islands (25%), Brazil (13%),
Republic of Congo (7%) and Cameroon (6%). Just 10
countries supplied 91% (3.442 million cubic metres) of
China¡¯s tropical log requirements in the first half of 2021.
China¡¯s tropical log imports from the first and second
largest suppliers, PNG and Solomon Is., fell 26% and 6%
to 1.037 million and 958, 000 cubic metres respectively.
It was this decline that drove down total tropical log
imports in the first half of 2021.
In the meantime, China¡¯s tropical log imports from
Equatorial Guinea and Suriname dropped 55% and 45% to
88,000 cubic metres and 69,000 cubic metres respectively.
Similarly, China¡¯s tropical log imports from the
Democratic Republic of Congo, Mozambique, Brazil and
Sierra Leone declined.
Average tropical log CIF prices
First half 2021 CIF prices for most of China¡¯s tropical log
imports rose. However, CIF prices for tropical log imports
from Mozambique, Suriname and the Republic of Congo
Change in China¡¯s HS code for wood products
Tariff codes for some commodities have been adjusted.
The following HS codes for wood products have been
deleted as of 1 January 2021.
The following HS codes on wood products have been
added as of 1 January 2021.
GGSC-CN Index Report (July 2021)
In July 2021, China's PMI index declined to 50.4%, a
slight drop from the previous month. However, it
remained above 50%, indicating that the economy
continued to pick up even as the growth rate slowed. In
July the wood production and manufacturing industry has
entered the traditional off-season period and while
domestic demand remains stable export orders have
declined significantly, the price of raw materials is still at
a high level, the inventory of raw materials has continued
to decline and the cost pressure of the industry has
The GGSC-CN comprehensive index
for July registered 47.7% (56.9% for July last year and
44.3% for July 2019), a decrease of 5.6% from the
previous month andit dropped below the critical value of
50% for the first time since March. From this it is
concluded that the operations of the forest products
enterprises represented in GGSC-CN index shrank from
The price of fiberboard increased and the supply
of raw materials is tight.
The supply of raw materials such as base material
and ebony is tight so it is difficult to secure wood.
Efforts needed to reduce the procurement costs.
Products in short supply
Ebony, oak, black walnut, cumaru, oak above
1.8m, fibreboard, Base material.
Commodities for which the price has increased
Cumaru, pometia pinnata rosewood above 1.8m
£¬Pterocarpus erinaceus Poir black walnut board,
yelow rose board,rubberwood, ash, plywood,
fibreboard, reinforced base material, solid wood
blank, base material, urea, melamine,
frmaldehyde, dcorative paper, epoxy acrylate
Commodities for which the price has decreased
In the GGSC-CN index for July 2021 three out of five subindexes
of fell and two increased.
The production index registered 46%, a decrease of 15%
from the previous month and below 50% for the first time
since March. It shows that the production of forest
products enterprises represented in the GGSC CN
is worse than last month.
The new order index registered 50%, a decrease of 5.5%
from the previous month reflecting the ability of
enterprises to obtain orders is almost same rate as last
The new export order index, reflecting international trade,
registered 23%, a massive decline from the previous
month showing orders from abroad in
July decreased sharply July from last month.
The main raw material inventory index registered 46%, an
increase of 7% from the previous month.
The employment index registered 54%, an increase
of 3.9% from the previous month indicating the
employment situation is better than the previous month.
The supplier delivery time index was 38.5% indicating
that the supply time of raw material suppliers is much
more slowly than in June.