The Lithuania Western Timber Enterprises Association has forecast that Lithuanian log exports will reach 2.5 million cubic metres in 2011. Of this total, 1.5 million cubic metres will be exported to Asia with most going to China.

In the past China imported large quantities of logs from Russia but this has changed due to the imposition of high export tariffs on log exports from Russia. Timber traders in China have been importing logs from Lithuania as they are cheaper than those from Russia because there is no export duty applied. However the increasing demand from China has pushed up log prices to such an extent that domestic mills in Lithuania cannot compete.

News reports say that Imedeksa, one of Lithuania timber processing companies, is of the opinion that some Lithuanian timber processing companies will face the risk of bankruptcy if the Lithuanian government does not act to impose an export tariff on logs.

Many Lithuanian timber processing companies signed a letter to the government asking that the risks to domestic manufacturers be addressed. However, the imposition of an export duty by Lithuania may first have to be approved by the EU says an analyst.

Guangxi quick to develop plans for strategic timber reserve
The Guangxi Forestry Department has just completed a plan for establishing, what it terms, a national timber strategic reserve. Reports suggest that within 10 years the province will establish plantations over an area of 3.3 million hectares. At full production this area would produce around 70 million cubic metres annually and could meet about 20% of the domestic timber supply shortfall.

China is not rich in timber resources and has to import over 40% of its timber needs to meet domestic demand. Analysts say the rate of growth in demand is around 15% annually due to the rapid economic development. In order to guarantee timber security the country is actively pursuing a national timber strategic reserve aimed at increasing domestic timber supply capacity. The State Forestry Administration (SFA) recently announced ‘The compilation of the planning of national timber strategic reserve’. The SFA has requested 25 provinces and 4 forest industry groups to prepare plans for this strategic timber reserve.

According to the Guangxi forestry plan, the forest cover of the Province will increase by 2.6 percent when the plan is implemented. The net increase of forest volume is expected to be around 200 million cubic metres (around 8% of the national total).

Ganzhou furniture exports top 100 million dollars
During the first eight months of this year furniture exports by manufacturers in the region of Ganzhou City, Jiangxi Province almost doubled to US$102 million making up about 32% of the total exports from the province. In the first eight months of 2011, furniture exports by foreign enterprises based in Ganzhou city doubled compared to levels in 2010 and accounted for most of the increased exports.

The largest single factor behind this performance was the increase in exports to ASEAN countries following the latest round of trade deals between China and ASEAN. Exports to the US and the EU also rose significantly.

APEC offered a 3 point forestry plan by Chinese President
President Hu Jintao said that China aims to increase its total area of forest by 40 million hectares in the next decade and that China will continue to accelerate the pace of forestry development. The Chinese President outlined a three-point plan for sustainable and green growth.

In addressing an APEC meeting the President said APEC members should strengthen forestry cooperation by integrating forestry development with economic and social development aims. President Hu also said APEC members should balance economic development, environmental protection, industrial growth and ecologic issues by tapping into the various beneficial functions of forests. At the summit APEC members were asked to deepen regional forestry cooperation through high-level dialogue on policy coordination and technological cooperation and the elimination of trade barriers.

Guangzhou City Imported Timber Market

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	6200-7100
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.	2900-4300
Linden	4m, 26cm diam.	2000-3200
Sawnwood
Beech Europe		3500-7500
Black walnut North America		12000-17500
Teak Myanmar		9000-18000
Red oak North America		8500-15000
Alder Myanmar		4600-7600
Sapele Africa		5000-6500
Plywood
Red beech	4x8x3 mm	50-65
Black walnut	4x8x3 mm	50-95
Teak	4x8x3 mm	75-150

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