Chinese solid wood flooring manufacturers have increased
their prices in response to an increase in raw material
costs, causing complaints from retailers and consumers.
South American sawn timber prices increased 30% during
the year, and price rises are expected to continue in the
near term. Retailers and consumers are complaining about
price hikes, since business in China is slowing.
Coastal areas host most of China’s furniture
China Wood Monthly reports that the concentration of
furniture production areas along the coasts has been
growing. These areas have been increasing their market
shares, growing to 92.6% of total exports in 2005.
Guangdong, a fast increasing coastal producer area, Fujian
and Zhejiang make up 78.55% of the country’s total
State Council sets up China’s national forestry
On August 20, the China State Council established the
China Forestry Industry Association. The national
association is a non-profit social group managed by the
State Forestry Administration and will play an active role
in standardizing industry management, improving industry
planning, promoting orderly competition and serving the
forestry industry. Additionally, the association will also
endeavor to improve recognition and competitive strength
of China’s wood products market and move its forest
industry in line with international practices. The
establishment of the association marks an important
milestone in the development of China’s forestry industry.
The total output value of China’s forestry industry topped
RMB1 trillion and the total international trade value of
China’s forestry industry was RMB47 billion in 2006,
nearly three and two times higher than in 2000,
respectively. The total output value of China’s forestry
industry is expected to be about RMB1.5 trillion in 2007.
Shandong Port boosts plywood exports dramatically
During the first half of 2007, Qingdao Customs reported
that plywood exports through Shandong Port rose to 1.47
million m³, valued at US$460 million, up 41% in volume
and 78% in value from the same period in 2006. The
average price for exported plywood was US$310.4 per
cubic meter, up 27%.
The causes of the price rise were record high prices for
exported plywood through the port, which exceeded
US$300 per m³ for six consecutive months and broke
US$317 per m³ in June. The main export markets of the
US, EU and ASEAN countries accounted for 69% of
plywood exports through the port. Statistically, exports
from enterprises grew across the board during the first half
of 2007. Private enterprises rose 40% to 969,000 m³, stateowned
enterprises rose 42% to 359,000 m³, foreign traders
grew 49% to 111,000 m³, and collective enterprises
increased 29% to 32,000 m³.
Imports through Heihe Port surge across the board
Log imports through Heihe Port were 2,043 batches,
63,500 m³ and worth US$3.54 million during the first half
of 2007. The imports resulted in increases by 28.7% in
batch, 33.4% in volume and 42.9% in value from the same
period in 2006. The main timber species imported were
birch and larch. Although Russia had implemented its
higher log export tariff, log imports through Heihe Port
had not yet been impacted.