producers report · 2017-07-25 · international tropical timber organization domestic log prices...

Vol. I No. 14 August 1996

INTERNATIONAL TROPICAL

Tropical jinber Market InformationTowards Greater Transparency in the Tropical Timber Markets

Producers Report

Log Prices

International Prices

Log Prices, G"born

TIMBER ORGANIZATION

I - 15 August 1996

M"!cyst"

I 1/1

,/ 1/1

11/1'

I 11

C@", eroo" Log Prices

1/1

1/1

111

, 1/1

; 1/1

,. 1/1

,

So"tfo Sec Logs

International Tropical Timber Organization (!ITTO)Pacifico. Yokol!anal*1-1 Minato-mirei* Nishi-k, ,, Yokohamai 220 JAPAN

Tel. (81-45) 223-1110 Fax: (8145) 223-1111 e-mail2 tiliadams@ito. 6r. ip

FOB

rome, to

Cadopfry!!"inremindz""

Other mired, qp des

International Tropical Timber Organization

Domestic Log Prices

Report From 8,473il

o83 at milly"rdpeatob"

GII"""

While there are no price changes to report currently rain is Sawnwood Pricesdisrupting the flow of logs. The weather is expected toimprove by September.

per c, ,.",Us$70

DSS6@

*

o8singCatb"

Oti@7/@", be

mire, 'Fromire

orrc",,"rink@kk, ^;4006eussinBi"tic

G""re"

Chemc"e"

Cedrell"

ReportfromM"laysi"

LogsDomestic ise ex-!o8y@74)Meram, t B"kit (39)Kent""88em""gk@kMerb, z"

Peeler Core logsIt"66erwo@d

Per C, " in''90cm + Us $40600" + DSS5@

60cm + DSS55

55c", + Us$, 570cm Us$5070cm+0835@

6thin + 0836@

70cm + DSS45

SOC", + DSS45

Ke";!'us

Reportfr. om findo"coin

",

International Prices

onesttc log prices Per C, " intv, Pood!o83"ce Logs

Core logsCDP!@83

Fark"," logs,, 66en, ,o0d

Me

Teak

"hornt

Brazil

The full impact on industry of the ban on the f^Inng ofMahogany is unclear, an update will be provided in thenext report.

.

Export S@wini, ,o0dIntob" Green

DSSr90. f95

DSS 140- 50

UsSri, 5,150Us$4550Us$35.36

0836

DSSiz@@

08316@

Cor, 41, to (:EFF@pelLKS 171si"" Marke4)

,

Gh"""

it

Currently there are large orders being negoitiated for railwaysleepers.

Vol. I N014 August 1996

per C, ,. inUs$460

Us$540083250

*

Ro, !gft S"",,, Prices FOBPer C, ,. in

Mixed Redi, ,@0's DSS335

low gr"de Od"in (Trek, ,I 0834@O,,'"w" U $220

Incw" it":ed dimensions DSS267rpcw@ Boules DSS2Z9

70cm log of". 25.75", in 45, cm reingt"

Matogc, ,yFAS J@"minp1, ,,^1.8", plusFAS15@mmpl, ,s 2.4mp!,, s""egre

Tropical Timber Market Information


;;,;;;;*'^^$;^^$ " I" .:c-;L?,, b, ,*,\.;* it', .... v. ,:**,- a*ît, . *j: .;!^taint^$! \! fit % *., -., j'<419 *

" '^;af"î$$^'^^?;;*.;;t11^^me$^ ;* $4. ;*; ;,, gir;^^, .. It, ',' + 4.3*,,""*-:,*.,'. I'm. *, e",

I. ' ,,^ * @$$335:?;$$'$; :.I~"~. a, *.~';";., i$';,"J?. ; ' '.' ;:,*, j , ~ j, >J; ' $, *- . '..; ^!,$$^$$'$*$$;*;^ -.* itI$!t**!;,,,,:,., talkj:,. **:,

, . *;$tj$$?^.^$j$;*Î * ; ,'**^@$$^j;^-in '*^;

Malaysia

Son" Tinter

E;^!,@rt(FOB)Dork Red Mein",:, ip QGMS se!ec! & hater fit:D)Ser4V"Seiji, ,flings (75n25 )"î',!pok (25 &37ng ,".

I'Se",""gkq.kI:^5",,,,&37^jinaKD)

Gfo""@

Domestic prices have remained unchanged, demand isstagnant.

Tatw"" Province of Chin"

I^^^t^'î^^@illîtîf^$;it;^:^74^!$> ;$%t^!^;$;:;$'^;*^^;^$-*;$;*yin* ^-. ;$:^*:!!ER;!@4n::ît;,:#,;^:i^^^;!^.!^!@;ti-$?:Î, ^4-4:;;itÎ, ^^$^:@;j^^: ::;;;$@^j@Ii^jfii:*';:";;;;;! 4$;;;;*" 4 i;Lis$;!anno*'*;

^$\^^!inn:!.;\;*;#$;;; 'î ..!;î$^4^:@4**':*.î^;;^î^^jjît$@*^;$:-,.;* \\?^tit^;:;.î^4^;i^@iît^@*^;$:--.;* #;în^$:;:,\^,,-:**., I. ,..* ,.,. .*.~lait'-*, ' 41, . '.':^;,\:,. ,., -*,,~,...;"....,;,~J:;;'?,

per C, ,. in

DSS7@5- 725

Lis$720.735

DSS755"765

3363S-650a.

1. < A *j'<,,*,., I;.\.,:,:-,**.;; ,;~$ ,, ;^!

;R;^.^^^t^!@;^;^ ^,,.* *,,

^^^;i$,^!,$!I!@^;$"'"""""^;^'tit, Feb. I-~"*h**';:!:.,=* .. * *

I$'fjî^în- 't;^t;^;I?'^'j ' I , ' 'F1*are, ,,..!;.$ '*;. . .' " *;Rat, t',,; $<3! : .

Zj^j:;^^^^^*$^@"r ,,.,*Z\,}~'\,*,!;:*:". ,,,

G"born

'er C, ""'LIS 365,370

S$,, 30-44@

U $450;.. 460

,*,*,**,, 13:1:5;$1;:^^;, a:F^#In, \I'$;'^;;^- ^?;;;t. \$*;: , A^sI ,;. Iti'^'",@!î^tit^;j^;'^3Î^@^,!\.* * ** *.*11^*;** by!$.' ":j^^'4^^!!!it^;@. a!g\^;5, ;1:56, ^!,!; * * I ' #t'' ', by;; ',. ,,,ît!$^nile;;i^^4^'Î^^Î^^$,^^4;46.4, :^; -* ^^^!^9^^;^;g^^'!^*,,;^^^?"e":în^^!"^!,,*;^,-it"!I^^^4^^";4:14^;,@"^84"^fit*,,^ I$$4t;;^!^;;*$*14Î.*'tin*;^;!!$;^$:"~ *^^;;;!;^@17:4;;;!41.4;'@@^^,;^^!:@,,;a^;*i.,",,,. .,*:13. !*, I**;;,.,,,;e, ,$;:T, ,I^:-{q*;-.*h-,~ ..<. - *-4. ' -.,*:tit! .*.. It:. t. It I;^:j^;^*;ÎC!;Î^$sen^tit^:;^'^14t^:$'I$-^^.$4^^*t:::$;^;i$^t^$.':^$^%;##11^;t^^:^;î$;@@:Î^^^;I;^t;if," *.,::,,:,, ,"I, .I *, ,*, I;. A .,;$!,., Jr. !* , , 1,531 *,'",..*;" ' r. . ,,,;It;. ... v, It; *,,,,. . -(,.*,;,,

I;, *",;:tit:;,.'Y* ,*!!, '.:kj^4i, *prte'J-:":,$;;-.-,.* 1:4:4^;';,- * 41t. ;n::;:

Domestic Sawnwood Prices

keyort^. om Br"zi!

Sint, ","o0d(Oree" ex-""741per C, "inUs$450lyeIIS$160Ban@!PP, "s

U^$365-38@LIS$, 90;-505

*.*, j.DSS:535-55@LIS$825-830DSSZJO@-J2@O

Reportj*@mr"domesin

Vol. I N0 14 August 1996

^ ;.~*;j^:b"*,- ' . ^^^^;$#r. . .- pi;;;^ .'-^:;@'@}i;,;îte:^!tin$^t!^;tin, *I^@ten^!' 4:14: . - - . '\;"','

^:pins^@:^j^c^,-;,:-'tis$;if^^43;sj*;;i49';!^^^:î^c"!:;:-I't!g$*!^^4^^$;;i$;^:\;;; I. ' $, ' - , . -: o. ,$$^'^@;:$^@^j;' I*~-*.-}.-----* ,*,*!;;;::: in'* * ' . r :,*-:*^^!*-;*'*<* , ;:';^^!;?aÎ^;Î$;^,$'$ .;tj$^^^:^;j, *-. j;' , ' -^!;;^@îai - ' *;^; . ^LIS 8@!:'34^\$;*<:43. , *,*v. ,,;-.,*,*1:<L : ;*a- ;,\:g, *?!:,?,$;1. <=*ip R*:$'.

Tropical Timber Market Infonnation


Malaysi",, Domestic SawnwoodP, .ices

Sawn timber demand in the domestic market has been veryactive during recent weeks, Red Me rantis and constructiontimbers such as Kernpas, Kapur, Keniing and other mixedmedium and light hardwoods are in demand. Contractors arefinding it difficult to secure sufficientsupplies fortheirneeds.The prices for these construction timbers are also very firm

1,004, Spliced reinedr (Joyous)Thick"es 6", in

g:

Scpele'"egreMakog""yKoto

Plywood and Veneers

Internalioamal Prices

A new plywood mill has been commissioned and will beproducing for the export and domestic market. During thiscommissioning stage alloutputwillgoto the domestic market,

Gh@""

per C, ,."tDSS1370

DSS1@62

LIS$zZ49

Us$1Z53

Industry is reporting that while sales are slow at present thesituation is expected to improve by the end of August. Theholiday period in Europe has a dampening effect on businessInquires

#

Sliced re, ,eer 4!g, Sq. ,,ji's^!. 20As",!fom" FCCe

rintertor us^!.*@@LIS$@:65BCCki"g

Redwoods p14@togriny, C""donei, Edt, ,"",)pe q. ",Us I, f5

DSS@. 90

DSS@, 55

Face

finteri@r

Backing

Vol, I N0 14 August 1996

Brazili"" Plywood ",, of Veineer

Prices at which last business was done remain unchangedAs the situation regarding Virola emerges it will be reported

Pe"eer

Irk, te Viral" FCee

2.5m",

per C, ,.",

Us$260-32@

Tropical Timber Market Information

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Other Panel Product Prices

Br"at!

in port Priceslockbo", d Z8m",

White Viral" Fused

or allK'

", ticlebo"rd

2.18"un (4x, !I

Malaysi"

The export market for particleboard continues to be quite weakand the

prices are still low. There are reports of local productionbeing scaled down drastically and one mill is reported to haveceased production. FOB prices range from Us$ 150 - 160per Cu, in

The domestic consumption of particleboard is reported to bequite highrecently and it is estimated to be in the region of 350,000Cu. in annually, The prices for imported particleboard arereported to be very competitive. Domestic pricesrange from Us$ 165 - 180 Cu. in.

rindo"esi"

Taiw@" Provi"ce of Chi"", Imports


Prices of Added Value Products

J, ,domesin

o"Mingsmr'" skirting

or the Jt"Ii",, ",@ate

row" using .P" at or err, tomor J" cinese market

,

Tropical Timber Market Infomiatior


co"t.

in,

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un B dq;

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in

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$4

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F",:"it"re

4 13a^!', ER$ iRubberwood parts and components:

Mat"ysi@In recentyears TaiwanProvinceofChina's furniture industry

The demand for wooden furniture, particularly the low to has encountered problems such as rising wages, difficultiesin finding workers, ra, w materialshortages, and soaring landmedium categorycosts. These problems have forced manufacturersto movecontinues to be veryactive. However the prices remainquiteoff-shore; mainly tomq. inlandt:hinaandto South-EastAsianlow as competition in this market is particularly intense . 1' 'I . *- ,-.countries. ,amongproducers in Malaysia, Thailand, China andVietriam

Despite these problems, Taiwan Province of China is stillone of the leading exporters offurniture in the world, afteronlyGennanyandltaly. I*' I

.. 11, ' "',' ,,' "According to ^îtisticsreleas6d'I;'ytê, 'Industrial Development ",-Bureau, there are more than'3,00'0 furniture manufacturerson the island aÎd IÔS't;îtheÎ Î'^;'small and in^diufri-Sized, ,

"- 09 .'.' It ' "' '

andthosewithmotetiian 300workersaccountsforonly2%.

, , ,,,

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$4

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r

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Sfoq@gdC "i, ;gentso8-2în!i, !6 ' 18"$4"@re$) .

,; @^S$2.95-$, rayiêrpc\$

Per C, ,. inring!erj@intedus''40,850toad, ,@ted^@my4S+, ; :H. .

topg, rude " 05'890@

,.

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Tropical Timber Marketlnfonnation


A Special Report from IT'1'0'sCorrespondent in China

China's fur, ^ituse Industry

Since the refonn and the opening of the economy,China's furniture industry has been developingat an unprecedented rate in tandem with nationaleconoiriic development and with the improvementin the life style and demands of its people.

According to statistics from the National StatisticsBureau, China has total 8,014 furnitureenterprises. In this context, enterprise meansthose independently accounted enterprises andindustry units with a legal status. These industriesemploy some 515,500 people and, on an arumalbasis, produce atotalof 3,086,378 items (of whichwooden furniture items account for 2,022,609pieces, or 65%). Furniture of wood and steelcombined production totals 368,713 pieces, or12%.

Market Prospects

In the coming years, the market prospects forChina's furniture sector are positive as demandfor furniture is forecast to grow at an annual rateof 8% for the following reasons:

The annual production value from theseiridustriesin 1993 was Yuan 17,548 billion and total salesincome was Yuan 13,785 billion. Compared tothe production of 1/6,41 million pieces of funiiturein 1985, the production in 1993 has more thandoubled.

I, Hotels in China are entering a period wherethey win be replacing furniture. China has morethan 1,900 hotels that can receive foreign guestsand has more than 300,000 rooms (There are 230hotels in Beqrng region). The total value of thehotel funiiture replacement business could be asbigli as Yuan 2 billion.

Statistics from another source, the total numberof furniture enterprises in China, includingtownship andiridividually owned enterprises, hadreached 22,000 with about 900,000 employees andYuan 20 billion eross sales in 1994.

Of alenterprises, 2,711 or 45% of enterprises areindependently accounting industries within thedefiriition of the Lie^It Industry System, a further36% (16,000) were rural township enterprises, anda further 199'0 were run by the ForestryDeparttnent. In addition, 650 were owned byforeign enterprises or Sino-foreign jointenterprises.

2. T}Ie residential housing market has enteredan improvement period. About 3 Trimion flats arebuilt annually in cities and towns in China. Theincreasing improvement of residential stocks willresult in a rapid gr'OWLh in demand for householdfurniture.

3, in estimated 10 million couples will getmarried annually (80,000-90,000 couples are inBeijing). Their purchases of furniture areestimated to be abolit YLiari 3 billion.

Vol. IN014 August 1996

A ^tome on the hintti, re Indri^stry

The development of China's furniture industry hasthe following characteristics:

Joint venture manufacturing by Sino-foreigninvestors is developing rapidly. Ten years agoChina had only 17 joint manufacturingenterprises, this had jumped to 650 enterprisesby the end of 1993 (Beijing had more than 30,Shanghai had most, accounting for more than1901.

Investors are from Hong Kong ( 60% of all, next isSingapore, followed by the United States, Japanand Taiwan Province of China. The enterprisesare of the small to medium scale and a variety of

8 Tropical Timber Marketlnfonnation


furniture is produced of the medium to highquality.

The main raw material for furniture mantifac-Greater attention is being paid to technological ture is wood, and combination of wood andupgy'adjng of old facilities. A variety offurniture steel. In 1993, wooden furniture made u 65%facilities have been upgrade and the equivalent of of total furniture production, furniture made ofUs$170 Thinion has been invested into some 200 wood and steelcombination made up only 11%enterprises since the reform and opening to the of the total production.

, outside world. This investment includes 200

production lines for panel products, solid woodand bent wood furniture and 100 lines for soft/ The wood rawmaterials used in furnitureupholstered furniture and 20 for metal furniture. manufacture has been changing . The propor-

tion of natural solid wood has gradually de-The quality of the furniture produced is now creased and has been substituted by reconsti-oriented towardsthemediumandhig}Igrade. The tuted products especially panels and laminatedmarket demand for furniture of medium-high woodproducts.erade is growing rapidly due to growth in demandas a result of more hotel construction and as a

result of an increaseiridisposableincome. This is Styles and Demandespecially the case in the coastal region and bigcities which are experiencing rapid economic Furniture styles are mainly modern, buttherehatdevelopment andwherethe growth trendis more beenadevelopmentofbottimodemaridtraditionalobvious. styles simultaneously. The designing offurniture

is gy'adIJally developing from, traditional, frameAs an example of this, sales of tinttationma}logariy structure to the panelstructure, as areSUItof tti~are booming in cities such as Shanghai, and increased useofplywoodaridotherparielprodtictsGuamgzhow, as a result, street markets selling for furniture manufacture.only "mahogany" fi}mittire are appearing. InShanghai alone there are more than 200 newlyopened "mahogany" furniture shops. It is The averagesizeoftheftimitureenterpriseissmallanticipated that this market will expand to the and production facilities are basic and of lowother big cities. technology. Of the more than 20,000 furniture

enterprises, 80% are considered small. TheThere has been a big increase in exports of furniture outputoftheserulllsis of the lowgrade.furniture from China. The country exported The medium to high grade furniture sector has

~ furniture valued at only Us$33 million in 1985, room for a gr. eater growth in capacity and it is forUs$150 million in 1990, Us$200 million in 1991, this segment of the market that investtnent willUs$800rntllioniri1992, bute>EPOrtsreachedUS$1 be directed.billion in 1993.

Raw Materials

China's customs statistics show thatthe value of At presentitis estimated that the production offttrniture exports were Us$544 million in the low quality furniture has surpassed the demandperiod January to June 1995. The main export in the domestic market, it is only in the marketdestinations were Hong Kong, the United States for newstyleftirnitlirewithinthe mediumtohigh

quality has more market gr'owtli capacity. .and Japan.

Vol. IN0 14 August1996 9 Tropical Timber Marketlnfonnation


Freight Costs

Br"zi!

Saw","oort

Pare""g""-koiterd"inCo"t"mer 2017.coat@mar 40n-Pain, ,,^g, ,"-BClti", oreContainer 2012.coat"i"er 40n-

Us$66per C". inB"IkS"wini, ,o0d

IRCrd",@ods over 750kg/C;,".")

PlywoodPar""@g""-Z7Pollensed

DSS13@@

LIS$200@.

Mat, ^psi"

088150@

Us$180@

Indomesin

Bundled Sawnwood

Malaysia to Rotterdam Us $42 per Cu. in.

40 ft. container

Malaysia to West Coast USA at Us $2650Malaysia to East Coast USA Us $3200Malaysia to Ports in Taiwan Province of China Us $550-650

44n Colat"iterIckort@-Reader, min

fuki, t"-L4(I*, est co t LISA)J@k@rt"-NY(eastc@art CFS^)

Us42per C, ,.",

Gfo@""

Port KlangI Ports of Taiwan Province of China Province ofChina

UsD 42 per Cu, in Bundled Sawnwood

~

Indonesian plywood imports are up 9.9% to 299,000 Cu. inandimporrs from Malaysiaare up by 10.5%to 116,000 Cu. in.Bundled Sawnwood

Ghana to Europe (Alitwerp-Hamburg), Us $65 to Us $83 per Imports from the two countries amount to some 90% ofCu. in depending on quantity and the buyers' relation with plywood imports and their market share is growing,the shipping lines.

Japan's total plywood imports for January-May were2,038,000 Cu. in, an increase of 14% over the same periodContainers

Containerized sawnwood and other products from Ghana for one year ago. Imports from Indonesia reached 1,332,000Cu. in, an increase of 8%, followed by Malaysia at 499,000N. European PortsCu. in, an increase of 28%. Canadian softwood plywoodUs $2070 for a 20fl container

imports totaled 133,000 Cu. in, an increase of 32% over theUs $3730 for a 40ft container

same period last year. Imports of Us plywood totaled 23,000Cu. in, an increase of 18%.

r

Consumers Report

Report From Japan

ICp@" 's Jinp@, ts of Plywood Lt,

Tatw"" Province of Chin"

According to a report from the Japan Plywood Manufacturers'Association, based on data from the Ministry of Finance,plywood imports in May were 471,000 Cu. in representing anincrease of almost 15% over the same month last year. Therehas now been eight straight months of increase in plywoodimports.

40ft. container

West Coast USA from Taiwan Province China Us $2000East Coast USA from Taiwan Province China Us$ 2350


ranpo, t Forecasts

The forecast for this year's imports are 5,769,000 Cu, in ofSouthsealogs and 429,000 Cu. in of African logs, accordingto the Southsea Timber Section of the Japan Lumber

Tropical Timber Market Infomiation


Importers' Association. Southsea lumber imports are expected Regio""JReviewto be 1,172,000 Cu. in and yearly plywood imports are forecastat4,714,000 Cum (up by about 7% over last year). The supplies The forests of the Northeastare now providing more offrom Indonesia, the largest exporterofplywood, will remainfairly the country's needs. The high quality hardwood logssteady but importsfromMalaysiaandothercountriesareexpected from the state-owned forest areas of Northeastandlnnerto continue to grow. Mongolia had very good market in the first halfofthe

year and prices remain high. As an example,Manchurian Ash logs, 4 metre length and 30-40 cmdiameter, were fetching 1750-1800 Yuan per Cum. Incontrast, the price of Korean pine logs had fallen

Influenced by favorable housing starts the Japanese imports of considerably in the Jinn production arealogs are showing a recovery after a long dull period. However,prices have not yet started to move but are finn. It is expected In the Yichun forest area, although the price of Koreanthat some price improvement will occur. The most important pine logs of6 metre length and 30-38 cm diameter wasfactors in the apparentrecovery are, firstly, that housing starts only 900 Yuan, demand could not be stimulated. Thiscontinetobe at higher levels and secondly that there is a shortage situation is the result of there being a stronger demandof domestic logs at present. for. decorative furniture timbers and lower demand for

constructionaltimber as the construction industry wasvery depressed.

Sjg"sty'Recovery tm the LogM"rket

Report:r'rom China

Prices of Timber

logs

Korean Pine

Spruce/Fir

Larch

Ash

Chinese Fir

Yuan per Cu. in

6m, 30-38cm

Masson Pine

6m, 24-28cm

Yunnan Pine

6m, 24cm+

Imported logs

4m , 30-38cm

Douglas Fir

Beijing

4-5.8m, 14-18

Hemlock

4m, 18-28cm

Luan

4m, 18-28cm

1200

Shanghi

1100

cm

mewoodProd"ctsM"rketi"thenrstH@4/@If996

850

Allexceptiontothissituationwasseen mrelationtothedemand for spruce, fir and larch. Smallto mediumdiameter logssold wellandthis wasthe resultofstrongdemandfromthepulpandpaperindustrywheredemandwas much greater than supply.

220

In the first half of 1996 the markets for wood products in the In order to try and stabilise wood prices, a minimumcountry were not very active, stocks had accumulated and were price limit has been adopted by the state-ounied forestmoving slowly, and this was causing a downward pressure on of the Northeast, but the stock situation continues toprices. worsen.

1600

Hachin

1050

900

2400

1300

850

Xian

900

750

1800

1400

1450

Nanjing

1150

1050

Vol. IN0 14 August1996

1550

I500

800

Hefei

880

850

1200

18/6

1449

Guangzhou

1150

1050

1800

1569

1200

1397

I050

2700

780

1220

800

2300

1650

1000

In tilesouthemforestareathemarketdeclinedandstocks

increased, prices were down, especially forthe smalltomedium diameter logs which were hard to-dispose of.

780

11 Tropical Timber Marketlnfonnation


Yuan per Cu. in

Plywood

Imported

Domestic

Linden/Ash 4x8 3mm

Yuan per Sheet

4x83mm

Be tying

Sawnwood

Korean Pine 4m Length

Spruce/Fir 4m Length

Shanghi

In some of the forest areas such as the south Jianxi Province, Prices were up an average 50 Yuan per Cu. in compared toeast Guangxi Autonomous Region, south Fujian Province, prices at the end of last year.south-east Guizliou Province and south Hunan Province, the

price of Chinese fir 4 -5.8 in length and 14 -18 cm diameter The price of Masson's pine logs 4 in long and 18-28 cmdiameter in the three areas mentioned above was Yuan 850,was in the range 750 "1,050 Yuan per Cu. in.740 and 1,050 per Cu. in. Although this price was down

The impact of low prices and reduced turnover had a negative compared to last year, it has remained stable, In the southeffect on the enterprises in these areas and all were reporting it appears that the Sleeper market has improved.an unsatisfactory financial performance for the first half of

Chi, ," '3 Bigges, Processi"g Ce"itethe year.

The picture was much the same in the northern area, demand Hei Long Jiang Province, with its abundant forest resources,was low and the timber enterprises were experiencing reduced has become the biggest processing centre for forest productssales income. Overall, prices were slightly down compared in China, today there are more than ten thousand forestto that last year. Taking Korean pine log as an example, the products processing enterprises. The main products includeprice of logs 6 in length and 30-38 cm diameter was Yuan avariety of panel products, furniture, paper and paperboards1300,1250,1400 and 1500 in Bejing, Zhengzhou, Jinari The total investment by enterprises in forest productsand Xian, this represented a decline of between 10-15% on processing has now reached Yuan 5.3 billion.prices for last year. However, the prices for decorativehardwoods of high quality remains fimi. In order to further develop high quality downstream

production, daring the Ninth five-yearPlan, the Province willIn Tianjin, Qingdao and Zhenzhou, the selling price for installalvroF plantwith an annual capacity of 125,000 Cu. in,Manchurian Ash logs reached Yuan 2230, 1800,2200 per In addition, under the Plan, solid wood furniture productioncubic metrein the areas mentioned. The upwardtrend in prices lines will be upgraded. In the non-veneer panel sector, thecontinued in the first halfofthe year. Interns of volume of key development will be focused on MDF and OSBsales, spruce, fir and larch logs were slightly higher than the (especially thin board types), at the same time production offor Korean pine. Spruce, fir and larch log prices have wide plywood will be developed as will be the utilisation ofremained stable, a wider range of species. All types of panel with synthetic

decorative overlays will be developed in order to raise theIn the southern consuming areas the market situation was value added output.very different and there were noticeable differences in pricesfor various grades and sizes, large diameter logs were selling It is estimated that the solid wood furniture produced by threewell and at very good prices, The price of Chinese firlogs 4 key enterprises and marketed in China under the trade names~ 5.8m and 14 - 18 cm diameter reached Yuan 1,449 perCu. in "Bright', "Helm" and "Crane" will reach an annual output ofin Nanjing, Yuan 1,080in Charisha and Yuan 1,200in Hefei 4.5 million pieces. These enterprises are expected to begin

44

23

Harbin

42

Beijing

Xian

42

Shanghi

1900

1200

30

Nanjing

45

Harbin

35

1400

Hefei

40

Xian

1700

1150

38

Guangzhou

41.5

Nanjing

1750

1300

40

Hefei

2150

1670 1400

Vol. I N014 August 1996 Tropical Timber Marketlnfonnation


to seek ways to come together for business and production consumption, accountino for well over 50% of the nation'srationalisation. Because of the availability of high quality total use for most products.hardwoods in the Province, the production of solid woodfurniture will be integrated with up-stream processing. A notable exception is in particleboard usage where the

Midwestem region accounts for 83.1% of the nation's totalThe total production valueofforestproductsoftheProvince consumption. In contrast to this, the Midwestern re ionis forecastto reach Yuan 60 billion, and of this some Yuan consumes only a 11% share of the nations hardwood lumber800 million is expected to be yielded in taxes and profits. use in the furniture industryHei Long Jian Province is well on the way to taking fulladvantage of the available resources and towards offering This can be explained by the heavy concentration of officeemployment opportunities to a potentially huge work force. and institutional filmitore manufacturers in the Midwestern

regionespeciallyin GrandRapids, ^^fi. Office and institutionalfurniture makes much more use of panels than householdfurniture.IIS Industry Report

WoodR@w- ateri"Is in theninertc"" F"rinit"rel"d"st, y1995

Hardwood lumber is the most commonly used material bythe furniture industry, however, the use of panelproducts isincreasing. Particleboard use is up 42%, Softwood lumberup 22.99'0 and MDF up 22.59'0 all are increasing at a muchfaster rate than hardwood lumber.

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UseqfH"rdwoodsby Species

Red Oak is the most commonly used species, representingsome 33% of the furniture industry's total hardwood lumberuse. In absolute tenns, consumption of Red Oak ishighestinthe Southern andWestem regions, each one claiming ashareof 43% of the nation's total.

rbinodkyre, rerun

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WoodM"termlUsebyRegio"

In relative terms, the furniture industry's Red Oakconsumption is most dominant in the Western region. Infact, amassive 86% of the region'stotalhardwood usage forfurniture is Redoak, compared to anationalaverage of 339Yellow Poplar (16%), White Oak (11%) and Hard Maple(9%) are also popular furniture woods.

This may be the result of transportation costs and the heavyThe Southern region accounts for the largest proportion of consumption of Alder. Also, larger companies are morelikelysolid wood raw-materials utilised for the production of to o Grate theirown d -kiln.furniture. The region absorbs 77.8% of dimension parts and62.1%of allhardwoodlumberusedbytheAinericanfumitureindustry. The Southern region is also the leader in panel

Sol^^

5:6

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70fo

796

The wood furniture industry is using most often No. ICommon grade hardwood lumber. This grade accounts forapproximately 60% of the total hardwood lumber volume,and is highest in the Western region (72%).

Vol. IN0 14 August1996

Lumber graded No. 2 Commonand FAS/Selects accountforapproximately 25% and 12% respectively of the totalhardwood lumber volume

Almost two-thirds of all hardwood lumber purchased byfurniture manufacturers is green. However, finns located inthe Western region buy nearly all of their hardwood lumberkiln dried.

Tropical Timber Marketlnfonnation


\bll"Râ.1696

Bach Qie"y9fo

Lôrl. ^^firr^

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r. ,IN. ,, a9:16

Use of Soft, "o0d by Species

The following chart illustrates the approximate speciesbreakdown of softwood lumber used in the production offurniture. Eastern White Pine is the most commonly usedsoftwood species, accounting for 52% of total softwoodlumber use. PonderOSa pine and Southern Pine are thenext most commonly used softwood species

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Soull. in Pine

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Fb, ,"roea

PineIÂ

GeographicalIy, the Southern region accounts for the largestquantity (328 un^F) of softwood consumption. TheEastern White Pine is the most used species in the Southernregion and PonderOSa Pine is mostly used in the Midwestand Western regions.

Qinrs

,,%

^lain Wilts

rin

^fo

Vol. I N014 August 1996 14 Tropical Timber Marketlnfonnation


LM Loyale Merchant, a grade of log parcelFOB Free-on-Board

SSQ Select Sawmill QualityAD Air DryBoule A Log Sawi Through and Through

the boards from one log are bundledtogether

BB/CC Grade B faced and Grade C backed

PlywoodMBF 1000 Board Feet

Sq. Ft Square FootFFR French Franc

Koku 0,278 Cu, in or 120BF

libbrevi"ito"s

Vol. I N0 14 August 1996

.

Cu. in Cubic Metre

SQ Sawmill QualityKiln DryKD

FAS Sawnwood Grade First andSecond

WBP Water and Boil Proof

MR Moisture Resistant

per piecePCeachea

BF Board Foot

unF Medium Density FibreboardF. CFA CEA Franc

15 Tropical Timber Marketlnformation


V01. I 1.10 14 August 1996 16 Tropical Timber Marketlnfonnation

producers report · 2017-07-25 · international tropical timber organization domestic log prices...

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