China's timber consumption expected to increase

According to Zhang Jianlong, deputy administrator of the State Forestry Administration, China's total timber consumption will increase from 457 million cu. m in 2009 to 477 million cu. m for 2010, and the demand for timber imports for domestic consumption will grow from 100 million cu. m to 150 million cu. m per year in 2010. Zhang Jianlong pointed out that the farming need for timber can not be met only by importing more. It is urgent to promote domestic timber supply, allocate land areas for wood and timber production and improve forest management, he totted.

According to the recent national forest inventory, China's total forest cover is 1.9 billion hectares accounting for 20 % of the total land area, with a 13.7 billion cu. m standing wood stock volume. China's total area of plantation is the highest in the world, making up 38 % of the global total. In recent years, China's forest resources have been increasing due to large scale reforestation efforts, conversion of agricultural land to forests and through the implementation of the Natural Forest Protection Programme.

According to the National Program for Conservation and Utilization of Forest Land (2010-2020), domestic consumption of timber and wood products will grow rapidly in line with social and economic ontogenesis. The plan also addresses how to increase China's forest area in the future. According to the plan, China's forest area will reach 223 million hectares and standing wood stock 15.8 billion cu. m by 2020.

China is importing wood from Russia
In 2009 China imported over 20 million m3 of wood Russia. China's demand for Russian timber imports in the timber to occupy first place. According to Chinese Customs statistics show that the global financial crisis of 2008, the Russian timber imports reached 19.64 million cubic meters are still about 2008 Chinese total timber imports 56%. In addition, according to China Timber Distribution Association statistics, in 2009, the Russian timber imports more than 20 million cubic meters. And the rising Russian export tariffs might be a problem for the Chines companies.

Shandong forestry enterprises in foreign countries
The implementation of Shandong Province's strategy to launch business activities abroad is reportedly progressing. According to the statistics from Shandong Forestry Bureau, some 17 forestry enterprises from Shandong Province have been setting up businesses in foreign countries for logging, timber processing and establishing forest plantations. These enterprises have rented or bought a total of 3.5 million hectares of forests with 400 million cu. m of standing wood stock, which is four times more than the total provincial forest resources.

Zaozhuang Mining Industry Group invested US$ 200 million to buy forests with 1.6 million cu. m of standing wood stock in Canada and to build a timber downstream processing base in Rizhao City. Yangxin Eurasia Woodwork Company rented a forest area with 1.2 million cu. m of standing wood stock while Yantai Northwest Forestry Co.. Ltd rented forest area with 45,000 cu. m, both in Russia. In Gabon, Shangdong Longsheng Group acquired a concession with 450,000 cu. m of standing wood stock. Shandong Sun Paper Industry Co.. Ltd rented forests with a total of 99,900 cu. m standing stock from South East Asian countries such Laos to initiate pulp and paper production.

The expansion of Shandong forestry sector seems to go along as increasingly enterprises are showing interest to invest in foreign forestry resources, capital and technologies. In 2007, there were 21 Shandong's enterprises participating in field visit to Russian forest resources. In March 2010, 8 enterprises took part in the Investment and Trade fair held in Russia for Shandong downstream timber enterprises.

Shandong Forestry Bureau has founded cooperation with Russia, Japan, Indonesia and Australia to facilitate and provide information for enterprises to invest in foreign countries.

Cost of Chinese furniture in the US market
According to Chinese furniture industries, furniture exports will be greatly affected by the changes in the US Formaldehyde Standards for Composite Wood Products Act, which stipulates hardwood plywood, particleboard and MDF sold in the US must meet a formaldehyde emission standard of 0.09 parts per million by January 1, 2013.

As a result, furniture enterprises will have to use E0 panel instead of E1 panel to produce their products which will increase the costs of furniture manufacturing by 20 %, says a spokesman of Zhejiang furniture industry.

Wood-based panel imports from Thailand pick up
According to the statistics from Ningbo Entry-Exit Inspection and Quarantine Bureau, in the first seven months of 2010 wood-based panel imports from Thailand through Ningbo Port were 60,000 cu. m worth US$ 21 million. Thailand tripled its wood-based panel exports over the same period in 2009, making up 38 % of the total wood-based panel imports through Ningbo Port. There were 3 major enterprises which imported each 15,000 cu. m of rubber wood panels in Ningbo district.

Guangzhou City Imported Timber Market

Shanghai Furen Wholesale Market

Shandong De Zhou Timber market

Hebei Shijiangzhuang Wholesale Market

Tian Jin City Huan Bo Hai timber Market