News brief on wood industry in China in August

By CnAgri2012-09-13 13:06:31 Print

Sales amount in summer in North America market dropped considerably, traders made less supply in compliance with the decreasing demand, the price went relatively stable.

The recent recovery of real estate industry in North America increased the demand for SPF, which led to higher offer of SPF from local traders. As a consequence, imported SPF price went up in China, and so did the market price.

Merbau has been widely used in coastal areas of Southeast China with large sales quantity. However, due to domestic governmental policy since 2012 and the current off-season, demand for Merbau dropped a lot, and market transaction was quite gloomy.

In spite of traders decreasing offer for Manchurian Ash by RMB100-200/Cubic meter, sales condition was still gloomy due to weak end demand.

Due to governmental policy regarding real estate industry and gloomy action of industries such as furniture and decoration, both transaction and price of veneer were at low levels.

Sales condition of Kevazingo was quite unpleasant recently. However, many traders believed that future sales would be much better considering the super quality and low price level.

Exporting quantity of panel board from Indonesia in the first half of 2012 is only 1.2million cubic meters, down 13.4% compared with the 1.39million cubic meters of 2011. The exporting amount dropped as well, from $0.71 billion to $0.66 billion.

Investment in wood processing industry has been noted a lot in Russia since 2011. It’s expected production capacity of saw timber shall be around 3.5million cubic meters in Russia by 2016. Not only the production scale shall be enlarged, but also the production line will go modernized.

Wood market in North America continued with fluctuation and stable low-level, which was caused by little demand during the current off-season and influence from the debt crisis of Europe-America areas. The gloomy condition also made it difficult for China to export wood to the area.

From "China Wood Market Monthly Report"