07 September 2011

China: Growing timber deficit expected to impact domestic timber prices

It has been reported that China’s log imports rose to 34.35 million cubic metres in 2010 doubling from the 17 million cubic metres imported in 2001. This rate of growth of timber imports is expected to continue.
It has been estimated that China’s overall timber deficit could grow to over 180 million cubic metres (roundwood equivalent) by 2015. However, with the international supply of commodity wood products falling and with rising domestic demand there will be a strong upward pressure on timber prices in the Chinese market.

Raw materials for traditional style furniture in short supply
The China National Forest Products Industry Association (CNFPIA) has recently reported that manufacturers of traditional furniture are finding it difficult to secure supplies of timbers such as sandalwood and ebony. These species are the main raw materials for traditional style furniture. The declining availability of these timbers will affect production of high-end classical furniture in China.