China Wood Products Prices
16-30th Sep. 2004

Report from China 

Challenges in Forest Management  

The results of the latest nation-wide forest resource inventory from the State Forestry Administration show that China still faces major challenges because of the inadequate harvestable volumes, the imbalanced distribution of resources, the very high demand for wood products and the severe damage that has occurred.  

The report points out that the natural forest is not stable and healthy and that the ecological balance has been disturbed. Forested land in China covers only 159 million hectare, or just 60% of the land available for forestry (263 million hectare). In addition the report says that the average stocking per hectare is only 78 cubic metres. The average stocking volume of plantation per hectare is only 35 cubic metres. 

The distribution of forest resources is uneven with forest cover in 11 provinces in the eastern coastal regions reported at 27% whereas the forest cover in 11 provinces in the western regions is only 9% and for 5 provinces is only 3%. Also, the report says the forest age structure is distorted. The proportion of  young and medium age forest plantations is high at about 70%. In addition the species represented are few with  58% of the plantations being of Mason pine, Fir and Poplar. 

The rapidly changing social situation in the country is also putting considerable pressure on forest management, there is large gap between supply and demand of wood products. The supply of wood products from national forest resources can only meet around 40% of the demand for wood products. Also the demand for the multiple environmental benefits of forests is increasing and this will likely lead to a further lowering of the areas available for logging.  

Finally the report points to continued forest destruction. According to inventory results the harvest levels in 34 counties (bureaus) are too high and inappropriate change of land use were recorded in 202 counties (bureaus. The conversion of forested land to non-forest use is said to exceed some 562,000 hectares.  

Forest Certification 

According to Li Dongsheng, Deputy Dean of Science and Technology, State Forestry Administration, after 2 years of preparation, China has developed "The Standard and Indicator of  Forest Sustainable Management ", "The Standard for China Forest Certification" . Dr Li also stated that a Chain-of-Custody Certification Standard is also under development.  

Dr Li was speaking at the recently concluded international forest certification workshop held in Hangzhou. This workshop was billed as the largest, top level forest certification workshop in China to-date.  

The workshop was attended by representatives the  Pan-European Forest Certification (PEFC) the American Sustainable Forestry Initiatives, the Forest Stewardship Council (FSC). Also attending were representatives from the Malaysian Timber Certification Council and Indonesia's Eco-Label Institute.  

Controlling Harvests 

According to information from Guangdong's forest administration, the province will strengthen forest protection and management and focus on harvest quota enforcement and timber flows in order to ensure sustainable forest management.  

Currently Guangdong's provincial economy is developing rapidly and this has created a huge demand for timber and wood products. Development projects in the forestry industry have been extensive and now the focus will be on reducing consumption, energy saving in the sector and on efficient use of resources. 

The timber transportation license system is designed to help stop illegally logged timber from flowing into market and the strengthened supervision of the industry stamp out illegal processing and trade units.   

Natural Mountain Forest 

It has been reported that Xinjiang Uygur Autonomous Region's government decided that the logging of natural forest of Tianshan Mountain and Aletai Mountain would be banned. This area of some 30 million mu (15 mu is equal to 1 hectare) of natural forest has been protected since the implementation of Natural Forest Protection Program (NFPP). At the beginning of NFPP, Xinjiang reduced logging to 80 000 cubic metres from 300 000 cubic metres.  Now a total ban will be introduced in 2005 in order to protect the original forest where valuable Schrenk Spruce grows. 

In recent yars Xinjiang has develops plantations and has around 26 million mu (2.4 times more than that in 1997) of plantations and more commercial timber will come from the plantations in the future.  

The rapid increase in the area of plantations is driving the development the  timber processing industry. Xinjiang has over 3,800 timber processing enterprises with an annual production of around 1.2 million cubic metres.  

Recently some Shanghai, Shandong, Jiangsu and Zhejiang's timber processing enterprises producing high value-added products relocated to Xinjiang and production is sold to Asia, Europe and some domestic provinces.  

Guangzhou City Imported Timber Market  

Shanghai Furen Wholesale Market 

Hebei Shijiangzhuang Wholesale Market  

Shandong De Zhou Timber market  

Tian Jin City Huan Bo Hai timber Market  

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