Market News in September

1.1 Forestry Resources and Policies News

l According to the 9^th inventory of China’s forest resources, the area of eucalyptus is 5.4674 million hectares. From 1986 to 2018, the area had increase 10.7 times.
 

1.2 Company News

l On September 12, a framework cooperation agreement on sino-Italian wood machinery Sci-Tech Center was signed by Lanshan District of Linyi, Shandong Province and Italian Imapal Group. Owning more than 3,200 wood enterprises, Lanshan Dictrict’s panel output accounts for 30% of China’s total output. Its annual output of wooden products is over 2,000 cubic meters and the annual output of wooden products is over 1.5 million cubic meters.   
l On September 16, the production of Jinyu Tiantan (Tangshan) Wood Science and Technology Corp’s relocation technical transformation project with an annual output of 300,000 cubic meters of fiberboard started. Construction of the project started in September 2018. Debugging will continue later in order to reach target output as soon as possible.
l On September 17, the District Committee of Guangxi Development and Reform Commission issued a major project plan which includes Guanglin Wuxiang Logistics Park and Chongzuo Guanglin Okaro Home Corp’s integrated cupboard project with an annual output of 50,000 sets. The total investments in the two new projects would be RMB 852 million.
l On September 21, Zheng Yuan Holding Co., Ltd. signed a contract with the government of Pengxi County, Sichuan Province on a smart home high-end panel project. With a total investment of RMB 600 million, the company would set up a door industry/smart home high-end panel production line and its supporting facilities and equipment with an annual output of 300,000 cubic meters. The construction period would be 24 months.
l On September 26, the production of Guangxi Hengxian Xinweilin Board Corp’s decorative orientated particleboard project with an annual output of 300,000 cubic meters started. The project was under construction in October 2018 with a total investment of RMB 680 million.
l On September 29, the second phase of Jingui’s high-end cardboard expansion project with an annual output of 1.8 million tons was under construction. It was expected to be put into operation in 2022. The project includes the construction of an ordinary white cardboard production line with an annual output of 900,000 tons and a food-grade white cardboard production line with an annual output of 900,000 tons. The construction also includes supporting facilities such as a hydrogen peroxide plant with an annual output of 300,000 tons, a chemical pulp project with an annual output of 750,000 tons, a power workshop and other related facilities. .
l On September 30, Vanuatu National Forest Resources Industry Company signed a contract with Hepu County Government of Guangxi Province and Beihai Tieshan Donggang Industrial Park of Longgang New District on Vanuatu National Forest Timber Processing Project. The total investment in the project is RMB1.53 billion and the project will be constructed in three phases. The project will include the construction of a limber storage yard, a wood-chipping factory, a veneer factory, a lumber mill, a redwood processing factory, a biomass fuel processing factory and related supporting facilities.
l On October 7, Lanshan District of Linyi City, Shandong Province held a centralized opening ceremony for the transformation and upgrading of the wood industry on the key projects of 2019. With a total investment of RMB15 billion, all of the twenty key projects of transformation and upgrading of the wood industry and the supporting facilities were under construction. At present, the construction of 2,600 Mu timber industry transformation and upgrading demonstration area, 5000 mu timber comprehensive supporting area and 500 mu timber machinery area has started.
l From October 10 to November 10, five paper machines of Tianjin Nine Dragons Paper will be shut down for 79 days. It is expected to affect production capacity by 100,000 tons.
 

1.3 The Monthly Data Statistics on Wood and Its Products 

1.3.1 The Monthly Data on Industry Related Economic Indicators

l From January to August, the forestry fixed asset investment decreased 4.5% year on year.
l From January to August, the fixed assets investment in wood processing and wood/bamboo product industry increased 2.0% year on year; the business income was RMB 543.68 billion, up 1.2% year on year; the total profit was RMB 22.71 billion, down 4.0% year on year; the export delivery value was RMB 34.18 billion, up 0.1% year on year.
l From January to August, the fixed assets investment in the furniture manufacture industry increased 4.1% year on year; the business income was RMB 444.31 billion, up 3.0% year on year; the total profit was RMB 27.03 billion, up 14.7% year on year; the export delivery value was RMB 111.47 billion, down 0.8% year on year.
l From January to August, the fixed assets investment in the paper and paper product industry decreased 8.7% year on year; the business income was RMB 865.19 billion, down 3.5% year on year; the total profit was RMB 38.54 billion, down 21.9% year on year; the export delivery value was RMB 39.39 billion, up 6.0% year on year.
l In August, the production of machine-made paper and cardboard was 10.443 million tons, up 1.9% year on year; from January to August, the total production was 80.838 million tons, up 1.0% year on year.
l In August, the newsprint production was 71,000 tons, down 37.2% year on year; from January to August, the total production was 746,000 tons, down 23.1% year on year.
l From January to August, the sales area of the commercial housing was 1018.49 million square meters, down 0.6% year on year; the existing home sales area was 149.78 million square meters, down 20.8% year on year and the sales area of the forward delivery housing was 868.7 million square meters, up 4.0% year on year. The sales area of commercial residential buildings was 894.1 million square meters which was 87.79% of the total the commercial housing sales area.
l From January to August, the total investment in real estate was RMB 8458.906 billion, up 10.5% from the same period of last year. The new real estate construction area was 1451.33 million square meters, up 8.9% year on year; the completed area was 416.1 million square meters, down 10.0% year on year.
l From January to August, the commodity retail sales of the furniture, building and decoration materials of the units above designated size reached RMB 122.02 billion and RMB 126.25 billion, up 5.8% and 3.5% respectively year on year.
l In August, China’s large scale building material and home furnishing stores’ sales were RMB 80.73 billion, down 1.05% month on month and up 0.81% year on year. From January to August, the total sales were RMB 627.01 billion, up 4.28% year on year.
l In August, China’s wood and paper pulp producers’ purchase prices decreased by 0.5% month on month, down 4.5% year on year; from January to August, the purchase prices decreased by 1.8% year on year.  
l In August, China’s wood processing producers’ factory prices raised by 1.1% year on year; the artificial wood increased by 1.7% year on year; wooden products decreased by 2.1%; the wooden furniture factory prices increased by 1.1% year on year; the pulp factory prices decreased by 14.5% year on year; paper-making decreased by 11.3% and paper products decreased by 2.3%.

1.3.2 The Monthly Data on the Wood Imported at Different Ports

l Since Caofeidian began importing timber in 2015, it has totally imported 4.06 million cubic meters of timber with a value of more than RMB 4 billion by July this year. Its annual fumigation capacity has increased to 3 million cubic meters in 2017.

1.3.3 The Data on the International Wood Market

l On August 5, Indonesia issued a ban requiring Indonesian ministers, governors and other officials to stop issuing logging permits for relevant forests and peatlands; the logging activities in 66.1 million hectares of virgin forests and peatlands would be permanently stopped.   
l During the first eight months of 2019, Vietnam's total exports of forest products had exceeded US$7 billion, an increase of 18.6% over the same period last year. During the first eight months, Vietnam's forest development area was 140,000 hectares and its output was about 13 million cubic meters.