China: Interim results of national inventory show expansion of forest area
National forest inventories are carried out every five years
in China and to-date seven inventories have been
implemented.
The eighth forest inventory was started in 2009. In 2010
the State Forest Administration completed preliminary
investigations in seven provinces, Shanxi, Liaoning,
Heilongjiang, Jiangsu, Guangxi, Guizhou and Ningxia.
The results just released show that the area available for
forest plantations increased by 1,696,600 ha while the
conversion of forest land to non forest use fell by 14%.
Overall the forest area in the seven provinces increased by
3.94 million ha.
The growing stock rose by 325.63 million cu.m and the growing stock in high forest increased by 2.36 cu.m per ha. Contracted forest lands, forested lands and plantations for operation by individuals increased from 13%, 15% and 17% at the last count to 34%, 40% and 71% in the recent inventory. The results also indicate that the average growing stock per ha in high forests in the six provinces is only 70.6 cu.m, 15.3 cu.m lower than the 85.9 cu.m national average.
Guangdong Province links investment in processing to investment in raw material supply
As of September this year, Guangdong Province began the implementation of “Administrative Regulations on Operation, Processing and Transportation of Timber”. This marked a further development to regulate the timber supply chain through provincial regulations. The changes are contained in thirty two articles in the Regulations which define timber and management responsibilities and streamlines requirements for permits to conduct timber operations and processing.
At the same time, the Regulations define the legal responsibility of each stakeholder and provide for a monitoring and policing system for timber transportation. According to the Regulations, primary processing timber enterprises with an annual production capacity of over 10,000 cu.m can only be established after a forest inventory and planning process has been completed.
A feasibility study on raw material supply is required this must be approved by the provincial forestry authority. Also within the Regulations applications for a license to establish a primary timber processing plant with an annual production capacity of over 30,000 cu.m, must include provision for the creation of forests which can supply 50% of the raw materials need by the plant.
The Regulations prohibits institutions or individuals engaged in processing of timber from operating without a certificate; operation and processing of timber outside the scope and size prescribed in the license; operation and processing of timber without legal raw material supply, purchase of timber from forest areas without permits. Analysts believe that these Regulations will promote the protection of forest resources and encourage efficient management and operation of timber enterprises in Guangdong Province.
Diversification of log sources benefits New Zealand and N. American suppliers
Due to the high cost of Russian logs, which now attract an export tariff, Chinese importers are sourcing more logs from New Zealand and North America. In first nine months of this year, China imported some 3.61 million cu.m of logs from the US, up 107% from the same period 2010.
Imports from Canada totalled 1.76 million cu.m (up 137%) while imports from New Zealand reached 6.18 million cu.m (up 42%). Imports from these two countries accounted for around 36% of the total logs imports into China. In contrast, log imports from Russia plummeted and the ratio of imported Russian logs to China’s total logs imports fell from 43% to 34%. However, despite the increased cost Russia remains the largest supplier of logs to China.
According to analysts, the reasons behind the changing log supply are that firstly Russia introduced the export tax on logs which suppliers passed on to importers resulting in increased costs. Secondly, China’s imports of logs are mostly coniferous timbers and supplies from the various sources can be substituted for each other in most end-uses. The US is one of the most important markets for China and Chinese companies know that by using American timbers they will be more likely to be able to satisfy the US consumer.
Malaysia Log Prices
Guangzhou
City Imported Timber Market
Shanghai Furen Wholesale Market
Hangzhou Timber Market
Shandong De Zhou Timber market
Hebei Shijiangzhuang Wholesale Market
Wenzhou Timber Trading Market
The growing stock rose by 325.63 million cu.m and the growing stock in high forest increased by 2.36 cu.m per ha. Contracted forest lands, forested lands and plantations for operation by individuals increased from 13%, 15% and 17% at the last count to 34%, 40% and 71% in the recent inventory. The results also indicate that the average growing stock per ha in high forests in the six provinces is only 70.6 cu.m, 15.3 cu.m lower than the 85.9 cu.m national average.
Guangdong Province links investment in processing to investment in raw material supply
As of September this year, Guangdong Province began the implementation of “Administrative Regulations on Operation, Processing and Transportation of Timber”. This marked a further development to regulate the timber supply chain through provincial regulations. The changes are contained in thirty two articles in the Regulations which define timber and management responsibilities and streamlines requirements for permits to conduct timber operations and processing.
At the same time, the Regulations define the legal responsibility of each stakeholder and provide for a monitoring and policing system for timber transportation. According to the Regulations, primary processing timber enterprises with an annual production capacity of over 10,000 cu.m can only be established after a forest inventory and planning process has been completed.
A feasibility study on raw material supply is required this must be approved by the provincial forestry authority. Also within the Regulations applications for a license to establish a primary timber processing plant with an annual production capacity of over 30,000 cu.m, must include provision for the creation of forests which can supply 50% of the raw materials need by the plant.
The Regulations prohibits institutions or individuals engaged in processing of timber from operating without a certificate; operation and processing of timber outside the scope and size prescribed in the license; operation and processing of timber without legal raw material supply, purchase of timber from forest areas without permits. Analysts believe that these Regulations will promote the protection of forest resources and encourage efficient management and operation of timber enterprises in Guangdong Province.
Diversification of log sources benefits New Zealand and N. American suppliers
Due to the high cost of Russian logs, which now attract an export tariff, Chinese importers are sourcing more logs from New Zealand and North America. In first nine months of this year, China imported some 3.61 million cu.m of logs from the US, up 107% from the same period 2010.
Imports from Canada totalled 1.76 million cu.m (up 137%) while imports from New Zealand reached 6.18 million cu.m (up 42%). Imports from these two countries accounted for around 36% of the total logs imports into China. In contrast, log imports from Russia plummeted and the ratio of imported Russian logs to China’s total logs imports fell from 43% to 34%. However, despite the increased cost Russia remains the largest supplier of logs to China.
According to analysts, the reasons behind the changing log supply are that firstly Russia introduced the export tax on logs which suppliers passed on to importers resulting in increased costs. Secondly, China’s imports of logs are mostly coniferous timbers and supplies from the various sources can be substituted for each other in most end-uses. The US is one of the most important markets for China and Chinese companies know that by using American timbers they will be more likely to be able to satisfy the US consumer.
| Logs | Yuan per m3 |
|
Lauan (50-60cm)
|
2000-2100 |
|
Kapur (up to 79cm)
|
3300-3500 |
|
Merbau 6m, (up to
79cm)
|
3500-4000 |
|
Teak
|
11000-13000 |
|
Wenge
|
6200-7200 |
| Sawnwood |
|
|
Teak sawn grade A
(Africa)
|
9600 |
|
US Maple 2" KD
|
7500-9500 |
|
US Cherry 2"
|
10000-13000 |
|
US Walnut 2"
|
14000-16000 |
|
Lauan
|
- |
|
Okoume
|
4500-5000 |
|
Sapele
|
5900-6100 |
Shanghai Furen Wholesale Market
| Logs |
Yuan per
m3
|
|
Teak (Myanmar, all
lengths)
|
7500-8500 |
| Sawnwood |
|
|
Beech KD Grade AB
|
4800-5000
|
|
US Cherry, 1 inch
|
9000-10000
|
|
US Red Oak, 50mm
|
6500-7000
|
|
Sapele 50mm FAS
(Congo)
|
|
|
KD (2", FAS)
|
6500-6800
|
|
KD (2", grade A)
|
5700-5800
|
Hangzhou Timber Market
| Logs |
Yuan per m3 |
|
|
Ash
|
4m,
30cm diam. |
2900-3800 |
|
Linden
|
4m,
26cm diam. |
1800-2100 |
| Sawnwood | ||
|
Beech Europe
|
3000-5500 | |
|
Black walnut North
America
|
7000-13000 | |
|
Teak Myanmar
|
9000-18000 | |
|
Red oak North America
|
8500-8500 | |
|
Alder Myanmar
|
4500-5000 | |
|
Sapele Africa
|
3800-4500 | |
| Plywood |
||
|
Red beech
|
4x8x3
mm |
50-65 |
|
Black walnut
|
4x8x3
mm |
50-95 |
|
Teak
|
4x8x3
mm |
65-130 |
Shandong De Zhou Timber market
| Logs | Yuan per m3 |
| Larch
6m, 24-28cm diam. |
1800
|
| White
pine 6m, 24-28cm diam. |
1750
|
| Korean
pine 4m, 30cm diam. |
-
|
|
6m, 30cm diam.
|
-
|
| Mongolian
Scots |
|
| Pine
6m, 30cm diam. |
1580 |
Hebei Shijiangzhuang Wholesale Market
| Logs | Yuan per m3 |
| Korean
Pine 4m, 38cm+ diam. |
1800
|
|
Mongolian Scots Pine 4m, 30cm diam. |
1700
|
|
6m, 30cm+ diam.
|
1750
|
| Sawnwood | |
| Mongolian
Scots Pine 4m, 5-6cm
thick |
1700 |
| 4m,
10cm
thick |
1750 |
Wenzhou Timber Trading Market
| Logs | Yuan per m3 |
|
Wenge (Africa)
|
4500-5100 |
|
Teak (Africa)
|
2100-2500 |
|
Merbau (Africa)
|
3500-5000 |
|
Sapele (Africa)
|
3200-3700 |
| Plywood |
Yuan
per
piece |
|
Red beech 4x8x3 mm
|
40-80 |
|
Black walnut 4x8x3 mm
|
40-85 |
|
Teak 4x8x3 mm
|
45-110 |