The Centre for China in the World Economy (CCWE), Tsinghua University expects China's economy to grow faster in the second half of 2013 as exports and investment rise. see: www.ccwe.org.cn/ccwenew/en/
The CCWE forecasts that GDP will grow by 8 percent in the first half and by 8.4 percent for the year. The CCWE report also forecasts that China's fixed asset investment will begin to recover in the second quarter of this year. The report notes that, despite attempts to cool the housing market, demand remains strong and investment to meet demand will spur economic growth.
Interest rates raised in tandem with surge in consumer prices
China’s National Bureau of Statistics said the consumer-price index rose 4.9% in February compared to February 2012. The February rise was slightly above expectations say analysts. Interest rates have been raised three times since October 2012 and the government and Bank of China have introduced other measures to try and cool the economy but inflation remains stubbornly high and consumers have to contend with soaring prices.
Talking tough to deflate housing bubble
At the beginning of March, new measures have been introduced to minimize the risk of the housing bubble in China becoming unmanageable. The State Council released a five-point guideline including a 20% capital gains tax on sales of pre-owned homes however, the Council did not clearly indicate when the new tax would be enforced. This uncertainty has caused a sharp climb in sales of homes with statistics on sales in Beijing alone showing almost a three-fold from the same period a year ago.
However, some analysts question whether the panic selling is necessary as it seems that the attempts at easing the rise in house prices are centered on tough talk rather than on enforcement of the 20% tax which, reportedly, became law since the early 1990s but had never been strictly applied.
China test trans-Arctic shipping route
Mr.Yang Huigen, the director of China’s Polar Research Institute recently announced that the Chinese vessel, Xuelong (Snow Dragon), had successfully explored an arctic route for commercial cargo vessels to N. America and Europe. For Chinese shipping companies, this could be the first commercial shipping route across the Arctic. If commercially feasible the Arctic route will result in major savings in fuel costs as the distance is much shorter than existing routes via the Pacific and the Indian Oceans.
Some overseas shipping companies have been using the trans- Arctic shipping route. Yang Huigen predicts that by 2020, 5-15 percent of China’s container vessels could be using the Arctic route.
Efforts on wood utilization efficiency and substitution
The China Timber and Wood Product Circulation Association has reiterated that, as China is so desperately short of timber raw materials, the country must further develop forest plantations to meet domestic demand. At the same time, says the Association, more efforts are needed to improve wood processing efficiency and to promote substitution. As far back as in 1951 the Chinese government announced measures to improve wood utilisation. These included the establishment of a special authority, the Timber Saving and Development Center, to spearhead these efforts.
To further promote efficiency of wood the State Council issued a decree on Enhancing Timber Saving and Substitution use in November 2005 in which several key projects were identified, including those on mechanization and digital control of wood processing, timber protection, industrialisation of timber recycling and the environmentally friendly substitution project. In 2009, more government resources were directed to improve utilization, minimize waste and substitution. The aim of these efforts was to both save and substitute some 40-50 mil. cubic metres of timber annually.
Statistics from the Timber Saving and Development Center appear to show that the substitution of wood from 1980 to 2012 amounted to over 870 mil. cubic metres, the equivalent of 1.45 bil. cubic metres of forest growing stock. The Association asserts that through these efforts China has made a significant contribution to global forest resource protection.
China - Australia cooperation to eliminate illegal timber from trade
In December 2012 The Nature Conservancy, China (TNC) received a grant of over RMB40 million from the Australian Government to fund its Responsible Asia Forestry and Trade Project. The project aims to improve timber market management in Asia and the Pacific and specifically assist Chinese timber enterprises in responding to increasing challenges in the international timber trade. In November 2012, the Australian Government enacted a law Prohibiting Illegal Logging including prohibiting illegal wood product imports into Australia.
The Australian market is important for many Chinese enterprises which must now meet the requirements of the Australian law. Over the past five years, TNC China has been helping government agencies and the private sector to prepare for the EU Timber Regulation and to respond to the US Lacey Act. Currently, TNC is assisting with the development of China’s Legal Timber Certification System.
Fujian attracts major investors from Taiwan P.o.C
It has been reported that in 2012 the Fujian provincial government approved investment by 16 Taiwanese timber and forestry enterprises valued at around US$68 million. The Fujian provincial government has actively promoted investment from Taiwanese companies and has developed policies to support this investment. The provincial government has accelerated the development of the Taiwanese farmers' business zone and tried to create an attractive investment climate for Taiwanese companies.
Guangzhou Yuzhu International Timber Market
Logs |
Price(yuan/cu.m) |
|
Lauan |
Dia. 60 cm+ |
2000-2200 |
Kapur |
Dia. 80 cm+ | 3100-3200 |
Merbau |
Dia. 100 cm+ | 5500-5600 |
Dia. 30-60 cm |
10000-13000 |
|
Teak |
||
Wenge |
not specified |
4500-5500 |
Sawnwood
|
||
Maple |
Grade A |
7500-9000 |
Walnut USA |
FAS 2 inches |
14000-16000 |
Cherry USA |
FAS 2 inches |
10000-12800 |
Sapelli |
Grade A |
6600-7000 |
Okoume |
Grade A |
4200-4500 |
Plantation Teak |
Grade A |
9600 |
Shanghai Furen Forest Products Wholesale Market
Logs |
Price(yuan/tonne) |
|
Red Sandalwood India |
All grades |
1 million-2 million |
Myanmar and Nepal |
All grades |
7000-8800 |
Granadillo (Mexico) |
All grades |
7500-8000 |
Sawnwood |
Price(yuan/m3) |
|
Okoume (Afrcia) |
grade A |
3700-4000 |
Sapelli (Afrcia) |
grade A |
6300-6500 |
Beech (Europe) |
grade A |
4400-4800 |
Red Oak (USA) |
2 inch FAS |
7300-7500 |
Cherry (USA) |
2 inch |
9800-10000 |
Maple (USA) |
2 inch |
8000-8300 |
Sapelli (Africa) |
2 inch FAS |
6300-6500 |
Merbau (Indonesia) |
All grade |
8500-13500 |
Hangzhou Timber Trading Market
Logs | Price(yuan/m3) |
|
Ash |
4m 30cm |
3200-4500 |
Larch |
4m 8-10cm |
1800-2900 |
Linden |
4m 26cm |
2200-3100 |
Sawnwood
|
||
Beech(Europe) |
All grades |
3200-4900 |
Black walnut (USA) |
All grades |
7000-13000 |
Teak(Myanmar) |
All grades |
9000-18000 |
Red oak (USA) |
All grades |
4200-7200 |
Alder(Myanmar) |
All grades |
4500-5300 |
Merbau |
All grades |
7200-14500 |
Plywood |
Price(yuan/sheet) |
|
Red beech |
4'x8'x3mm |
50-72 |
Black walnut |
4'x8'x3mm |
50-95 |
Teak |
4'x8'x3mm |
70-138 |
Shandong De Zhou Timber Market
Logs |
Length |
Dia. |
Price(yuan/cu.m) |
Larch |
4m |
18-22 cm |
1200 |
24-28 cm |
1250 |
||
30 cm |
1450 |
||
6m |
18-22 cm |
1230 |
|
24-28 cm |
1250 |
||
30 cm |
1500 |
||
White Pine |
4m |
24-28 cm |
1350 |
30 cm |
1450 |
||
6m |
24-28 cm |
1350 |
|
30 cm |
1450 |
||
Korean Pine |
4m |
1700 |
|
6m |
1750 |
||
Mongolian Scots Pine |
4m |
30cm |
1360 |
36cm |
1500 |
||
6m |
30cm |
1420 |
|
36cm |
1600 |
Wenzhou Timber Trading Market
Logs |
Price(yuan/m3) |
|
Ash |
2m 20-30cm |
1300 |
Chinese fir |
4m 16-18cm |
1500 |
Wenge (Africa) |
all grades |
4500-5100 |
Teak (Africa) |
all grades |
2100-2500 |
Merbau |
all grades |
3500-5000 |
Sapelli (Africa) |
all grades |
3200-3700 |
Plywood |
Price yuan/sheet |
|
Red beech |
4'x8'x3mm |
40-80 |
Black walnut |
4'x8'x3mm |
40-85 |
Teak |
4'x8'x3mm |
45-110 |