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China Wood Products Prices

01 – 15th Oct 2021

US Dollar Exchange Rates of  10th  Oct 2021
China Yuan 6.4358

Report from China 


  Power rationing - wood processing capacity drops
Power rationing policies are in effect in many provinces in
order to limit activities of energy-intensive industrial
enterprises. There are two issues behind this one is that the
government is trying to achieve lower energy consumption
the other reason is that there is a shortage of electricity
production capacity across the country.

Measures to limit electricity use in factories are currently
being enforced in 10 provincial regions including the
economic centres of Jiangsu, Guangdong and Zhejiang

Many companies and factories in Guangdong province
have been required to operate on a staggered schedule in
which production lines are allowed to run for two to three
days a week. Household power use is not limited.

Wood processing enterprises are facing challenges in
terms of environmental impact assessment and the power
issue will further affect processing and production will
decline further.


Furniture orders are coming back to China from
It has been reported that Vietnam's lockdown, which was
due to end on 15 September 2021, has been extended until
the end of September 2021 and many off-shore Chinese
furniture companies say that they are directing orders back
to China.

Vietnam surpassed China as the largest overseas supplier
of veneer and plywood to the US at the end of 2020.
Vietnam surpassed China as the largest furniture exporter
to the US in May 2021.

But the corona virus ravaged Vietnam in mid-year and the
government ordered factories to shutdown resulting in a
sharp drop in output. Factory closures in Vietnam have
forced Chinese investors in Vietnam to put expansion
plans on hold.

Due to the spread of the epidemic, Thailand, Vietnam,
Malaysia and Indonesia have suffered renewed outbreaks.
Most countries have declared a "lockdown", resulting in
the suspension of production in many factories and the
return of orders from ASEAN countries to China.


Guangxi Chongzuo City was honored as China Panel
Furniture Industry Base
A conference on ¡®China National Light Industry Science
and Technology Innovation and Industry Development¡¯
was held recently. Guangxi Chongzuo City was honored
as the China Panel Furniture Industry Base jointly by
China National Light Industry Council (CNLIC) and
China National Furniture Association (CNFA).

The authorities in Chongzuo City attach great importance
to the development of the wood processing industry and
have observed that the furniture cluster development has
achieved remarkable results with annual output value of
exceeding RMB10 billion.

There are more than 1,000 wood processing enterprises in
this City of which 108 wood processing enterprises have
an annual output value of RMB200 million. At present the
production of high-end panels and high-end furniture in
Chongzuo City equals that of the same industry in
Guangxi Province and thus meets the standard and
requirements of characteristic regions and industrial
cluster management by the China Light Industry Council.

With this honor the popularity of the Chongzuo brand will
be enhanced which is of great significance to the
improvement of Chongzuo panel furniture industry.
Product exhibition, publicity and investment promotion
will be conducted. The China Light Industry Council will
provide guidance, supervision and services for the panel
furniture industry development in the City together with
industrial associations.

Record braking outdoor leisure furniture export from
He¡¯nan Province
Outdoor leisure furniture is one of the emerging segments
with high export potential in He¡¯nan Province and its
products are exported to more than 60 countries and
regions, which is a new trade growth point in He¡¯nan

According to the Zhengzhou Customs the value of outdoor
leisure furniture and parts exports in He¡¯nan Province
between January and August 2021 surged 78% to
RMB5.73 billion.

The exported outdoor leisure furniture includes cane sofas
and deck chair, items which are sought by European and
the US families.

Pingyu County, Zhumadian City in He¡¯nan Province has
attracted leading enterprises in the outdoor leisure industry
such as Taipusen Group and Yongqiang Group and has
developed as one of the best outdoor leisure products
production bases in central China.

Data show that as of 20 September 2021 the value of
outdoor leisure furniture exports was RMB610 million, a
year-on-year growth of 52%, both export value and growth
were a record high.

The success of exports of outdoor leisure furniture from
Pingyu County is partly explained by the efforts of the
local customs authorities to provide efficient Customs
clearance and policies to support enterprise. Exporters can
clear Customs formalities online bringing down
transaction costs and enhances competitiveness.

GGSC-CN Index Report (September 2021)
In September 2021, China's PMI index registered 49.6%, a
decrease of 0.5 percentage points from the previous
month. After operating in the expansion range for 18
consecutive months, China's PMI fell below 50%,
indicating that the growth rate of manufacturing industry
has been decreased.

In September the timber manufacturing industry is still not
prosperous enough and there is no prosperity of "golden
September and silver October". The performance of the
production side and demand side is flat, and the
International orders have picked up slightly. Although the
price of raw materials is still rising, the inventory of raw
materials has increased.

The GGSC-CN comprehensive index for
September registered 48.2% (51.6% for
last September and 55.3% for September 2019), an
increase of 5.3 percentage points from the previous month,
and was below the critical value of 50% for three months.
It shows that the operations of the forest products
enterprises represented by the GGSC-CN index shrank
from last month. See below.

 The transportation cost of raw materials
is too high.
 The price of all South American timber has
risen and the timber is in short
supply. There is no way to solve it for the
time being.
 The price of pine core
board and Zingana has risen seriously.
 The supply of raw materials is unstable.

Products in short supply
Fibreboard,okan, diperyx ,merbau, zingana, pine core
board and thermo wood

Commodity for which the price has been increased
 Fibreboard, taun, eucalyptus, okan, diperyx£¬
dahoma, oak, teak
 melamine, formaldehyde, diethylene glycol and
other chemical materials.
 Colored paper, balance paper, wear-resistant
paper, glue and paraffin.

Commodity for which the price has declined
Oak, miscellaneous firewood.

The GGSC-CN indices
In September 2021 all five sub-indexes of GGSCCN
changed. The production index registered 42.9. But
still below 50% for three months. This indicates that the
production of forest products enterprises represented by
GGSC CN is worse than that of last month.

The new order index registered 42.9 reflecting that the
ability of enterprises to obtain orders is worse than last
month. Among the indices, the new export order index
reflecting international trade, registered 57.1%, an increase
from the previous month showing that orders from abroad
this month is increased from last month.

The main raw material inventory index registered 57.1%,
an increase from the previous month. It shows that the
raw material inventory of the surveyed forest products
enterprises increased in September from last month.

The employment index registered 57.1%, an increase from
the previous month. It shows that the employment of the
forest products enterprises is higher than that of last

The supplier delivery time index was 50.0%. It indicates
that the supply time of raw material suppliers of the
superior forest product enterprises is the same as last


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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