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China Wood Products Price and Market Reports
01 – 15th Jul

US Dollar Exchange Rates of  10th  Jul 2023
China Yuan
Report from China

 Duties on China's hardwood plywood and engineered wood flooring continue
According to a recent announcement from the US Decorative Hardwood Association, the US International Trade Commission decided that the existing duties on Chinese hardwood plywood will remain in place for the next five years. This decision follows the country's review process on whether to remove the tariffs after five years as required by the Uruguay Round Agreement Act and follows a similar ruling by the Commerce Department.

The Commission stated that removing existing anti-dumping and countervailing duties on hardwood plywood from China would cause substantial harm to the US wood flooring industry.

The US International Trade Commission also ruled that the existing duties on Chinese engineered wood flooring will remain in place for the next five years. This is a critical development for the industry which has been fighting to have this overturned.

First ‘carbon neutral’ industrial park for Fujian
It has been reported that Fujian Three Gorges Offshore Wind Power International Industrial Park obtained a carbon neutral certificate issued by the Beijing Green Exchange lifting the industrial park to take the lead in achieving carbon neutrality and thus became the first industrial park in China to achieve carbon neutral status.

A ‘carbon neutral’ wood pallet industry has been created in the Guolin wood industrial zone in Fujian Province. Pallets are generally divided into three categories metal, plastic and wood wit wooden pallets being most widely used because of their lower cost, strenth and their carbon fixation.

In related news, the China Forestry Group Corporation focuses on realising the recycling and sharing of wooden pallets and promotes the development of green and low-carbon industries to build wooden pallets to sequester carbon.

It has been estimated that one cubic metre of wood can produce 18 wood pallets. Based on the annual output of 10 million pallets about 5-600,000 cubic metres of wood will be used per year and about 530,000 tonnes of carbon will be sequestered per year.

According to the State Forestry and Grassland Administration wood and wood products are efficient and inexpensive carbon sequesters. The wood industry not only has low energy consumption in processing but the waste and waste produced in the production process can be used as biomass fuel which reduces the use of fossil energy while improving the utilisation rate of wood.

China's new wood industry base in Rizhao city
Taking advantages of timber imports a timber industry cluster has been rapidly developing in Lanshan District, Rizhao City in Shandong Province. There are around 400 timber trade and processing enterprises established there.

More than 360 wood processing enterprises have an annual wood processing capacity of 7 million cubic metres and an annual output value of more than RMB10 billion and support more than 20,000 direct employees.

At present there are 9 special timber handling berths at Lanshan Port with an annual handling capacity of 10 million cubic metres of timber and its business involves more than 30 countries such as Russia, New Zealand, the United States, Canada, Brazil, Uruguay, Germany and Poland.

Lanshan Port has the only national import wood quarantine and pest control area in Shandong port. There are 400 drying kilns with an annual capacity of 800,000 cubic metres and the timber storage capacity of 5 large special timber yards is about 1.2 million cubic metres.

A total of 9.15 million cubic metres of logs were imported through Lanshan Port in 02022 a year on year increase of 14% and accouned for just over 21% of the national total. Timber imports through Lanshan Port reached 5.18 million cubic metres in the first half of 2023, an increase of 7% year-on-year.

Rizhao city has unique geographical advantages, or the fan-shape origin of sea and land, can gather global resources, and then sell to the world. Building a factory in Rizhao can take advantage of these advantages and reduce production costs.

Lanshan District aims to build a low-carbon integrated national imported wood trade and processing demonstration zone in the next few years.


China timber index
In June this year, after experiencing consecutive slowdowns in April and May, the economy in China began to stabilise. The weakness in market demand slowed but enterprises still feel weakened demand, especially in international markets.

On 29 June the Standing Committee of State Council reviewed and approved "Measures to Stimulate Home furnishing Consumption". It was pointed out that home furnishing consumption has the characteristics of long upstream and downstream supply chains.The Chinese government will adopt measures to boost furnishing consumption through policy coordination and synergistic efforts between promoting home furnishing consumption, renovation of old residential areas, reconstructing housing for the elderly, constructing convenient living circles and improving recycling to generate a concerted effort to promote consumption.

In addition, on 28 June the Third Session of the Standing Committee of the 14th National People's Congress voted and decided to establish 15 August as National Ecological Day to promote an understanding for the entire nation and generate conscious actions by all industries.

In June production and output in the timber and timber products industry gradually slowed due to the holiday season and because of the slow recovery of demand.

Orders and production of GTI-China enterprises decreased compared to the previous month, reduction of inventory of raw materials and finished products was in progress as market prices remained in a downward trend.

In June, the GTI-China index recorded 48.2%, an increase compared to that of the previous month but has been below the critical value (50%) for 2 consecutive months, indicating that the prosperity of the enterprises represented by the GTI-China index shrank further from last month however, the pace of contraction eased.

Through the eyes of industry
The latest GTI report lists the challenges identified by the private sector in China.



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