China Guangdong's Timber Imports Up
¡¾May 26, 2003¡¿

The volume of imported hardwood logs increased around 30% while the volume of imported coniferous logs tended to remain at about the same rate as the first quarter 2002. However But the growth of imports of coniferous sawnwood grew 19% higher than the 12% growth seen for sawn hardwoods.

Average prices for hardwood logs were much higher than a year ago and increased from US$129 per Cu.m to US$141.06 per Cu.m. Prices for coniferous logs changed little increasing from US$61.11 per Cu.m to US$62.34 per Cu.m.

Prices for coniferous sawnwood were much higher and increased from US$131.55 per Cu.m in 2002 to US$142.69 per Cu.m. In contrast, the price of sawn hardwood fell from US$246.09 per Cu.m in 2002 to US$231.91 per Cu.m. Prices of both plywood and veneer increased. Plywood prices went from US$331.43 to US$336.3 per Cu.m and prices for veneer went from US$458.4 to US$443.34 per Cu.m.

In terms of import sources, coniferous logs were mainly supplied by Russia (3.235 million Cu.m, 89.4%) and New Zealand (319 000 Cu.m, 8.8%).

Hardwood logs were mainly tropical and were from Malaysia (620 300 Cu.m , 23.2%), Papua New Guinea (371 500 Cu.m,13.9%) and Gabon ( 251 700 Cu.m , 9.4%). Sawnwood was mainly from Indonesia (260 100 Cu.m, 20.9% ), Thailand (154 200 Cu.m, 12.4%), America (147 200 Cu.m, 11.8%), Russia (129 400 Cu.m, 10.4%) and Malaysia (104 100 Cu.m, 8.4%).
In terms of China's exports, both plywood and wooden furniture exports continued to soar during the first quarter of 2003. Exports of plywood reached 409 000 cubic metres, a year on year increase of 61%. The export value of plywood totalled US$ 550.7144 million, a year on year increase of 32.5%.

Timber Production Limits

According to Tan Guangming, deputy director of the Natural Forest Protection Program Management Center of State Forestry Administration, China has stopped felling over 30.4 million ha. of natural forests in the regions of the upper reaches of Yangtze River and middle and lower reaches of the Yellow River since the start of "Natural Forest Protection Program.

China has adopted a strict felling control policy which aims to gradually to reduce logging in the North-east and Inner Mongolia state forest regions.

The aim is to reduce timber production in these regions by 41% by the end of 2003, that is from 18.532 million cubic metres to 11.017 million cubic metres. When that is achieved all timber production limits will have been meet the main forest regions.

Tan Guangming further explained that timber production would be reduced by 19.9 million cubic metres by 2003. He said that timber production control was being implemented step by step in a planned way to combine forest protection, cultivation and rational utilization to ensure the sustainable development of forest.

Imported Timber in Man Zhou Li City

Man Zhou Li City is one of the largest ports handling imports of timber from Russia and imports average 15,000 cubic metres per day. Imports are distributed to the timber markets of De Zhou of Shandong Province, Lian Yun Gang of Jiangsu Province, Xi'an of Shanxi Province and Chengdu of Sichuan Province. Recently prices of imported timber have been falling which has raised some concerns with analysts.

The main reasons for the weak prices are several but the large numbers of timber trading enterprises and the overstocking and frequent disposal of degraded stocks tends to lower price levels. Adding to the problem is that Sino-Russian traders tend to adopt Russian standards when they sign the contracts but there is little control of timber quality. There are growing reports of quantity shortages and quality problems with imports.

In order to avoid long distance transportation of logs many timber processing enterprises have established processing facilities in the location.

Guangdong's Timber Imports Up

Guangdong Province consumed a total of 1.2916 million cubic metres (log equivalent) of timber imports in the first quarter of 2003, a year on year increase of 6.1% . Of this the consumption of imported logs was 449 200 cubic metres, a year on year increase of 4.9%, which reverses a year on year negative growth in log imports over the past years.

Use of imported sawnwood reached 842 400 cubic metres in the first quarter, a year on year increase of 6.8%. Furthermore, plywood imports enjoyed a positive growth being up 13.6%.

At the same time Guangdong's furniture exports increased substantially. According to preliminary statistics, Guangdong Province exported furniture valued at US$799 million in the first quarter, a year on year increase of 17%.

Guangdong Yuzhu Timber Market

Sawnwood	yuan per Cu.m
Teak squares	7800-14500
Teak Boards	9000-12000
Beech 3.5-3.8m	1800-5400
Cherry Squares	7000

Dongwan, Houjie Xinge Wholesale Market

Dollar Exchange Rates 25th April 2003