Chinese forest industry shows gains in first half

  • September 22, 2009
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 6804
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According to the State Forestry Administration, the performance of China’s forest industry showed gains during the first half of 2009. Statistical data showed total output value of forestry industry amounted to RMB726.6 billion yuan in the first six months, which is roughly the same as last year. The output of timber and wood-based panels reached 29.5 million m³ and 59.57 million m³ respectively. The paper making industry also showed signs of recovery. The output of machine-made paper amounted to 43.10 million tons in the first six months and reached a peak of 8.52 million tons in June alone. According to professionals, these achievements resulted mainly from the following measures taken by governments:

Firstly, the guidance and support for industry development strengthened. For instance, for products produced with timber residues, the policy of refunding upon payment of VAT has been established; export tax rebate rates for 63 forest products have been increased. Secondly, local authorities sped up incentives to encourage development of industrial structures. Some new industries, such as biomass energy, biological medicine production, forest food, forest tourism and biomass material, continued to increase. Thirdly, the import and export of major forest products showed signs of a gradual increase.

Furniture exports through Guangdong Province rise
According to statistics from Guangzhou Customs, the value of exports of furniture and parts (including nonwood furniture) was USD4.4 billion in Guangdong Province in the first half of 2009, down 12% from last year. Of the total, the exports to US and EU were USD 1.52 billion and USD1.06 billion, respectively, down 26% and 11% respectively. To cope with this difficult situation, the Guangdong furniture industry has actively explored ASEAN markets and the export value to these areas continued to rise. In the first half of 2009 the value of its furniture exports to ASEAN was USD440 million. Guangdong furniture is exported to all ASEAN countries except Laos. The value of furniture exports to Malaysia was over USD200 million, to Singapore was USD150 million, more than two times their worth in the first half of 2008. According to experts, ASEAN countries have become one of the largest markets for Guangdong furniture.

Sino-Russia Cooperation discussed in Harbin
Affected by the global financial crisis as well as increased Russian export tariffs, China’s logs imports from Russia in 2008 declined by 26%. Under this circumstance, the two countries discussed potential cooperation in wood downstream processing during the 20th Sino-Russia Economic Cooperation and Trade Fair organized on 15 June 2009 in Harbin. The representatives from governments and enterprises of the two countries also discussed joint exploitation of forest resources in other areas.

Malaysia Log Prices
Guangzhou City Imported Timber Market
Logs Yuan per m3
Lauan
1900-2400
Kapur
1900-2450
Merbau 6m, 60 cm diam.
3500-5200
Teak  
11000-16000
Wenge  
5200-5300
Sawnwood 

Teak sawn grade A
9300
US Maple 2" KD
7500-11500
US Cherry 2"
12000-12800 
US Walnut 2"
14000-15500
SE Asian Sawn 4m+, KD
3500-4000 


Shanghai Furen Wholesale Market
Sawnwood
Yuan per m3
Beech KD Grade AB
2500-3000
US Cherry, 25mm
9500-10000
US Red Oak, 50mm
9800-10500
Sapele 50mm FAS (Congo)

KD (2", FAS)
5800-6000
KD (2", grade A)
5200-5300

Shandong De Zhou Timber market
Logs Yuan per m3
Larch 6m, 24-28cm diam.
1150
White pine 6m, 24-28cm diam.
1200 
Korean pine 4m, 30cm diam.
1400
6m, 30cm diam.
1500

Hebei Shijiangzhuang Wholesale Market
Logs Yuan per m3
Korean Pine 4m, 38cm+ diam.
1700
Mongolian Scots Pine 4m, 30cm diam.
1200
   6m, 30cm+ diam.
1300
Sawnwood

Mongolian Scots Pine 4m, 5-6cm thick
1400
                                 4m, 10cm thick
1400

Tian Jin City Huan Bo Hai timber Market
Logs Yuan per m3
Okoume 80cm+
2800-3400
Sapele 80cm+ 6000-6500
Wenge 80cm+ 13000-14000
Plywood

US Black Walnut 4x8x3 mm
6000-8000
Beech 4x8x3 mm
6000-8000
Teak 4x8x3 mm
6000-8000
Poplar (4x8x3-5 mm) 3000-4000