Wood Production and Market 2

CHINA WOOD

Monthly Market Report

Wood Production and Market...... 2  Log import of log at Manzhouli continues to climb up. 2  China’s cooperation with African log industries has entered new frontier 3  Huge gap between demand and supply of forest resources in China 4  Carrying rate of harmful insect of the log imported through Jiangsu Port from January to September reached 70%...... 5  Eucalyptus grown in Guangxi Province increased in a big margin6 Board and furniture...... 7  Qingyuan Weilibang Wood Industry Co. Ltd constructed a productive line of fiber board...... 7  “ Furniture Consumption Use Instructions” implemented from October 1, 2004 ...... 7  Unqualified rate of artificial board in Hubei Province reached 40% 7  Canada vs. compound floor board in China is put on file 8 Paper Pulp and Paper Industry...... 9  The project of integration of forest and paper in Meili paper industry Co., Ltd has been put into implementation period...... 9  Big volume of pulp importation with high price in China this year 10 Imp. & Exp...... 11

Oct. 2004

Wood Production and Market

Log import of log at Manzhouli continues to climb up.

Log import from Russia, which has always been the largest import item at Manzhouli, continues to go up despite shocks from crude oil import.

Statistics at the customs show that log import from Russia in the first 6 month this year totalled 8.22 million cubic metres, accounting for 63% of the national total of log import, or 14.1% growth over the same period last year. Trade value totalled $616.26 million, accounting for 44.9% of the national total, or 27% growth over the same period last year. For the first 6 months, log import from Russia at Manzhouli accounts for 40% of the national total of log import from Russia in terms of trade volume and 38.25% in terms of total value. Manzhouli is the number one trade port with Russia, either in terms of import volume or trade growth.

In line with relevant regulations of the National General Administration of Taxation, Manzhouli port abolished the double rebate policy of border areas as of 31 August. Each truck load of log can save taxation of about 1500 RMB yuan. With the coordination efforts of the port office, Manzhouli Customs, the local railway station, together with 19 log import enterprises have signed log MOUs on log import management. Thereby, efficiency of customs clearance has been greatly enhanced as the customs let go of log imports first and the enterprises pay back taxes later.

Manzhouli Quarantine Bureau reformed the reporting procedures for log steaming and verification, from clearance in accordance with Chinese railway cart code and registration code to direct clearance in accordance with examination reporting. As for the procedure of log steaming, prompt clearance has been realized. Meanwhile, log steaming exempting is applied to local procession of imported log. Thereby, log import clearance speed has been greatly enhanced.

Besides, the warehouses and storage area have been expanded after renovation projects, such that the handling capacity of the railway station has been enhanced. Against the backdrops of skyrocketing crude oil price, log import has been unhindered.

China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 2

Oct. 2004

China’s cooperation with African log industries has entered new frontier

In recent years, China import lots of tropical log and sawn timber from Congo, Gabon, Liberia, Cameron, Equatorial Guinea, Central Africa, Tanzania and other African countries. Meanwhile, China also exports to these countries wooden floor boards and various products of wooden construction material. China-made wooden decorative or construction material is known for its reliable quality and cheaper prices as compared with similar products made in Europe, the United States or Japan. Strengthened wooden floor and plywood made in China are readily available in construction and decoration material markets of some African countries. With the economic growth of African countries, demands for the varieties of Chinese wooden products are on the increase. Chinese wooden products exert more influence in Africa and expand their market shares conspicuously.

To rationalize the utilization of the ever shrinking forest resources in the region, African countries have begun formulating policies in areas including funding, machinery, technologies and etc. for the sake of the development of local wood processing industry. To enhance cooperation with China, certain African countries formulated quite a number of preferential policies. For example, Zambia welcomes Chinese enterprises and has encouragement policies for foreign investment, such as the reduction or exemption of import tax for imported equipment. Chinese enterprises in Zambia can also benefit from preferential policies, such as the reduction or exemption of enterprise income tax, special permission tax and etc. On the part of China, 6 relevant ministries including Ministry of Finance, Ministry of Commerce and etc. jointly promulgated 5 preferential policies to promote Sino-African cooperation among enterprises, and provide all round support to Chinese-funded enterprises in Africa in foreign currency, policy funding, taxation, insurance and etc.

Huge gap between demand and supply of forest resources in China

Consumption of wood or wooden products in China expands year by year, of which consumption of artificial board, paper pulp, paper and paper board as well ranks world number two.

The growth of wood stocks from forests that can be logged in China is less than 100 million cubic metres per year. However, consumption of forest resources for commerce per year is 150

Oct. 2004 million cubic metres. So, Chinese forestry has a big resource deficit. Wood resources fall well off demands.

Consequently, the Chinese government strives to develop planted forests. Currently, China has 41.4 million hectares of planted forests. But these planted forests are low in quality. Per hectare wood stock is only 33 cubic meters; growth volume is less than 3 cubic meters; tree varieties are not properly arranged; planting and logging methods are not scientific，resulting in the loss of land fertility. Besides, growth duration of certain trees is too long. For some varieties, it takes 3 to 4 decades to grow up and be logged. In the short run , there is no way to resolve the wood shortage issue.

Carrying rate of harmful insect of the log imported through Jiangsu Port from January to September reached 70%

In recent years, log imported from Jiangsu Port has been increasing greatly while the biomass and varieties of harmful insects it carried increased sharply.

In the previous 9 months this year, the insect-carrying rate of the log inspected reached 70% in Jiangsu Province. In the period from January to September this year, Jiangsu had imported more than 3 million cubic meters of log, accounting for 1/5 of the total in the same period in the whole country, from which, 2000 batches covering 172 varieties of harmful organism were detected during quarantine, increasing respectively 85% and 9.4% compared with that in the last year. The detected harmful insects included Coptotermes curvignathus Holmgren, Heterobostrychus aequalis (Waterhouse), Dendroctonus pseudotsugae Hopkins, Ips typographus L and Hylobius pales（Herbst）etc., which are prohibited to enter into China.

The main reasons for the high insect-carrying rate of the imported log are as follows: Firstly, the logfrom Russia could not be treated before leaving the country and most of every batch of the timber carried live insects. 120 batches of log have been imported from Russia this year and the log carrying only Ips typographus L reached 16 batches; Secondly, log in many countries is with bark, which increased insect-carrying rate and thirdly, log from foreign countries is not thoroughly treated for eliminating harmful insects.

Eucalyptus grown in Guangxi Province increased in a big margin

Oct. 2004 In Guangxi, There are really several foreign and domestic enterprises that engaged in forestation and wood products making including Sinar Mas Group (Indonesia), Stora Enso (Fenland) and China Yin King Co., Ltd (Japan) etc as well as Kao-feng Group and a group of fiber board plants, medium and small forestation enterprises and thousands of rural households in China.

All of them grow a same kind of tree and it is Eucalyptus, which characterized by fast growth, strong adaptation and good economic benefits and broad utilization including sawn timber, pulp timber, artificial board and pole timber, etc.

In 1984, China together with Australia officially began to have a co-operation on introduction and culture technology for high production. At present, several hundred verities of Eucalyptus seed have been introduced and practice approved that Eucalyptus grows fast with strong adaptability and reproduction ability and no need to cultivate for the second crop after harvesting for the first one.

Although fast growing forest have been developing rapidly in Guangxi in recent years, the potential of the forestry in the province yet has not been brought into play. According to statistics, there are 136 thousands sq. km of the areas suitable for forestation in Guangxi, accounting for 57.5% of the total area of the land in Guangxi, most of which are subtropical areas with abundant rainfall and heat energy and 800 thousands ha of the areas are suitable for cultivating Eucalyptus. It is known that Guangxi has formulated a plan for cultivating, in a large scale, fast growing Eucalyptus and as many as 1 million ha of forest land have been divided to Sinar Mas Group and Stora Enso, the two foreign leading groups of paper making.

Board and furniture

Qingyuan Weilibang Wood Industry Co. Ltd constructed a productive line of fiber board

Qingyuan Weilibang invested 380 million yuan to construct a productive line of high density fiber board with the capacity of 200 thousand cubic meter, which is the largest unit project invested China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 5

Oct. 2004 by Weihua Group in Guangzhou. Within the two years, Qingyuan have developed more than 5000 ha of fast growing forestry land based on the model of “company + base + rural household”.

“Furniture Consumption Use Instructions” implemented from October 1, 2004

The National standard of “Furniture Consumption Use Instructions” will be implemented from October 1, 2004. The furniture seller must not only indicate in the instructions for the furniture the names of the enterprise and producer and names & address of import agent and seller, postcode and telephone number, etc but also the releasing amount of harmful substances including formaldehyde and lead, etc. If a enterprise owner or seller refuses to supply the instructions for the product, consumers should appeal to consumer’s association and quality control sectors and the productive and selling enterprises will be punished.

Unqualified rate of artificial board in Hubei Province reached 40%

Recently, Hubei Administration of Quality and Technology Supervision had a spot-check for 71 batches of artificial board in 69 enterprises in 9 cities in the province and the results showed that 39 batches of them were qualified, accounting for 54.93%, of which, the qualification of the board produced in 28 batches from 26 enterprises in Wuhan City was only 39.28%.

During this time in Wuhan City, 5 batches of melamine faced board had been spot checked and only one batch of them was qualified, making up 20%. The main items not qualified were inner binding strength, static bending strength, screw holding capability and capacity of facial gluing and the main reasons for the former three items were unqualified medium density fiber board and particle board used and for the latter one was unqualified productive technique, resulting in less strength for basic material and veneered surface.

The quality of blockboard products checked for this time was low and the qualification rate (10 from 23 batches) was only 43.48% and the main factors unqualified were mechanical strength, binding strength and specifications.

Canada vs. compound floor board in China is put on file

Canada vs. compound floor board made in China is put on file to investigate the case against dumping and subsidy. China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 6

Oct. 2004 Recently, Canada Border Services Agency has put the case on file officially after one-month investigation and Sichuan Shengda Wooden Products Co., Ltd is involved in the case.

Canada Border Services Agency, based on the subsidy part of the investigation, sent the questionnaires to the Chinese Government and known exporters and the deadline for submitting the questionnaires was November 10, 2004. The Agency required Chinese Government and related exporter supply completed information and if not, the margins of dumping and subsidy of the investigated products would be calculated base on the most advantageous information acquired by the Agency. It has been known that Canada Border Services Agency will have investigations on two parts of the case including dumping and subsidy and will adjudicate preliminarily before January 4, 2005. At the same time, Canadian International Trade Tribunal will have an investigation on damage of the case and will adjudicate preliminarily before December 3, 2004.

It is known that the exportation volume of compound floor-board of Sichuan Shengda Wooden Products Co., Ltd to Canada last year was about US$3 million, not very big and this case is somewhat different from the previous case against dumping. Government will be the main body for the case against subsidy and enterprises related will do some help actively on questionnaires while the main response body is the enterprise related for the case against dumping.

Paper Pulp and Paper Industry

The project of integration of forest and paper in Meili paper industry Co., Ltd has been put into implementation period

On September 21, the experts from both outside and inside Ningxia Autonomous Region evaluated and approved unanimously “Feasibility Report on Research of the Project of Integration of Forest and Paper in Meili”, which symbolized that the project has been put into implementation period.

As early as 1998, Meili paper industry Co., Ltd, for the first time pointed out the idea of the engineering on integration of forest and paper making and the sectors related had time and again investigation and study as well as evaluation for the project proposal and its

Oct. 2004 implementation. From 2001, Meili afforested 30 thousands ha along the fringe of Tengger Desert within the radius of 200 square kilometers. The forest grew vigorously and the survival rate reached more than 85%, supplying stable raw material for the pulp project and laying a good foundation for implementation of the project of integration of forest and paper making.

In 2003, the planning for Industrial Park of Meili Paper Making was approved the government of Ningxia Autonomous Region and since two years, Meili have pushed down more than 10 thousand sand dunes and leveled more than 1000 ha of land in the project area, and completed construction of various infrastructure, establishing a new platform for overall implementation of the engineering of integration of forest and paper making.

The total investment of the project is 4000 million yuan (RMB) and the constructing scale reached new-increased capacity of 410 thousand tons of paper making, in which, the technique and equipment as well as auto-controlled degree occupy leading level in the country and advanced level in the world. The product positioning is accurate and the prospect for the market is broad, with feasible plan of waste water treatment and zero charge, and the waste water from the enterprise can be used for irrigation of the forest land after proper treatment.

Big volume of pulp importation with high price in China this year

In the period from January to June last year, China imported 2.93 million tons of various pulp with month average volume of 490 thousand tons and 3.88 million tons of various pulp have been imported to China in the same period this year, with month average 650 thousand tons, increasing 32%. The total value of imported pulp in the first half of last year was US$1.25869 billion, with average price of US$429/ton and the total value of imported pulp in the same period this year was US$1.88316 billion, with the average price US$486.

The volume of imported pulp increased in a big margin with higher price.

Imp. & Exp.

I: Log Imports by Variety: In September 2004, China imported 2.229 million cubic meters of logs. Of the imports in the total 9 months, 64% were from Russia, 10.2% were from Malaysia China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 8

Oct. 2004 (Table 1-2). Table1, China’s Imports of log by Supplying Country (Products of heading No.4403- in China customs tariff) Unit: 000m3 Burma Korea Indonesia Malaysia congo Russian U.S Gabon 2003 863.0 90.2 259.4 2,931.4 242.4 14,367.6 101.3 941.6 Sep.04 55.0 11.9 3.8 257.6 30.1 1485.4 7.5 48.9 Jan.-Sep.04 872.3 119.1 86.2 1,993.2 359.5 12,584.7 118.8 470.0 Percentage 4.4 0.6 0.4 10.2 1.8 64.1 0.6 2.4 Papua New Equatorial New Solomon Guinea Cuinea Cameroon Zealand Is Others Subtotal 2003 1,377.8 510.8 139.3 1,920.7 178.7 1531.7 25,456.0 Sep.04 87.1 30.4 12.1 78.0 73.3 47.6 2,228.6 Jan.-Sep.04 929.1 248.9 84.6 698.8 322.6 741.7 19,629.8 Percentage 4.7 1.3 0.4 3.6 1.6 3.8 100.0 Note : 4403- including 44031000, 44032000, 44034100, 44034910, 44034990, 44039100,44039200, 44039910, 44039920, 44039930, 44039940, 44039990

Table 2, Imports of Logs by Customs (Products of heading No.4403- in China customs tariff) Unit:m3 Customs Sep.04 Jan.-Sep.04 Total 2,228,645 19,629,750 Manzhouli 571,810 5,095,978 Huhehaote 192,999 1,688,731 dalian 62,230 278,979 Changchun 11,385 116,266 Haerbin 528,365 4,518,387 Shanghai 56,488 712,797 Nanjing 452,917 3,868,637 Hangzhou 30,254 261,816 Ningbo 23,881 115,493 Qingdao 75,374 574,662 Guangzhou 79,302 532,657 Huangpu 26,784 189,317 Shenzhen 35,238 321,173 Gongbei 1,234 104,061 Haikou 0 14,051 Kunming 50,956 817,010 Other 29,428 419,735

1. Imports of Logs Treated with Paint: Imports of logs treated with paint were 6 cubic meters in September 2004. (Table 3-4).

Oct. 2004 Table 3, Imports of Logs Treated with Paint by Supplying Country (Products of heading No.44031000 in China customs tariff ) Unit: m3 Indon Malays Camero Gabon Russian New Papua New U.S Oth Subtotal esia ia on Zealand Guinea ers 2003 0 4915 0 277 0 40527 0 0 118 45837 Sep.04 0 0 0 0 0 0 0 0 6 6 Jan.- Sep.04 0 0 0 0 0 0 0 0 380 380 Percentage 0 0 0 0 0 0 0 0 100 100

Table 4, Imports of Logs Treated with Paint by Customs (Products of heading No.44031000 in China customs tariff ) Unit: m3 Sep.04 Jan.-Sep.04 Total 6 634 Dalian 0 0 Shanghai 0 0 Shenzhen 0 0 Wulumuqi 0 0 Guangzhou 0 0 Other 6 634

2. Imports of Coniferous Logs: In September 2004, Korean pine and Pinus sylvestris var. mongolica imports were 719,200 cubic meters, Kahikatea imports 263,300 cubic meters, Montery pine imports 75,900 cubic meters, eastern larch imports 317,500 cubic meters, and imports of other coniferous logs 16,500 cubic meters (Table 5-14).

Table 5, Imports of Korean pine Logs by Supplying Country (Products of heading No. 44032010 in China customs tariff ) Unit: m3 New Mongolia Kazakstan Russia Canada Zealand Other Total 2003 1.1 0.4 6735.9 0.6 5.1 1.6 6744.6 Sep.04 0.0 0.0 718.9 0.3 0.0 0.0 719.2 Jan.-Sep.04 0.0 0.0 6171.0 1.0 0.0 0.2 6172.2 % 0.0 0.0 100.0 0.0 0.0 0.0 100.0

Table 6, Imports of Korean pine Logs by Customs (Products of heading No.44032010 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 10

Oct. 2004

Total 719,196 6,172,203 Manzhouli 484,385 4,247,135 Hohhot 154,036 1,233,463 Dalian 2,133 8,790 Harbin 70,936 569,797 Shanghai 0 2,214 Nanjing 2,440 53,521 Qingdao 3,637 34,816 Urumqi 1,629 17,923 Other 0 4,544

Table 7, Imports of Kahikatea Logs by Supplying Country (Products of heading No. 44032020 in China customs tariff ) Unit: m3 United New Korea,DPR Congo Gabon Germany,FR Russia Canada States Zealand Other Total 2003 24.8 4.6 1.3 10.3 2694.7 5.2 23.1 28.7 13.9 2806.7 Sep.04 2.2 0.0 0.0 0.0 259.9 0.0 0.0 0.0 1.1 263.3 Jan.- Sep.04 22.7 0.0 0.0 1.1 2330.3 3.1 16.7 10.1 11.7 2395.6 % 0.9 0.0 0.0 0.0 97.3 0.1 0.7 0.4 0.5 100.0

Table 8, Imports of Kahikatea Logs by Customs (Products of heading No.44032020 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 Total 263,257 2,395,623 Manzhouli 11,149 187,105 Hohhot 19,269 292,406 Dalian 28,195 157,056 Changchun 2,239 22,823 Harbin 176,074 1,425,877 Shanghai 1,025 55,183 Nanjing 15,902 145,676 Qingdao 5,766 58,696 Shenzhen 849 1,352 Urumqi 1,790 16,980 Other 999 32,469

Table 9, Imports of Montery pine Logs by Supplying Country (Products of heading No. 44032030 in China customs tariff ) Unit: m3 Taiwan prov Australia New Zealand Other Total 2003 0.5 192.6 1738.3 0.0 1931.5 Sep.04 0.1 0.0 75.9 0.0 75.9 China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 11

Oct. 2004

Jan.-Sep.04 0.3 82.5 654.9 0.1 737.7 % 0.0 11.2 88.8 0.0 100.0

Table 10, Imports of Montery pine Logs by Customs (Products of heading No.44032030 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 Total 75,937 737,715 Tianjin 0 0 Dalian 0 0 Shanghai 7,948 157,297 Nanjing 14,864 182,885 Xiamen 15,543 223,075 Qingdao 18,027 59,160 Guangzhou 0 0 Huangpu 0 12,054 Shenzhen 19,555 75,771 Other 0 27,473

Table 11, Imports of Larch Logs by Supplying Country (Products of heading No. 44032040 in China customs tariff ) Unit: m3 Korea,DPR Mongolia Kazakstan Germany,FR Russia Other Total 2003 29.1 0.3 0.8 0.1 3124.3 3.1 3157.8 Sep.04 1.7 0.0 0.0 0.0 315.5 0.2 317.3 Jan.-Sep.04 16.0 0.0 0.0 0.0 2394.6 4.7 2415.4 % 0.7 0.0 0.0 0.0 99.1 0.2 100.0 Table 12, Imports of Larch Logs by Customs (Products of heading No.44032040 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 Total 317,327 2,415,356 Manzhouli 50,948 516,698 Hohhot 6,740 92,377 Dalian 26,938 70,834 Changchun 1700 17,235 Harbin 144,003 1,230,350 Shanghai 18,491 140,002 Nanjing 33,945 208,719 Qingdao 16,389 46,611 Urumqi 0 146 Other 18,173 92,384

Table 13, Imports of Other Coniferous Logs by Supplying Country (Products of heading No. 44032090 in China customs tariff ) China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 12

Oct. 2004

Unit: m3 Burma Korea,DPR Russia Canada United States Australia New Zealand Other Total 2003 68.6 5.0 28.9 74.5 2.6 40.8 95.7 17.6 333.6 Sep.04 3.6 0.5 5.3 4.4 0.1 0.0 2.1 0.5 16.5 Jan.-Sep.04 37.8 3.1 30.6 33.6 5.2 38.4 29.0 37.0 214.7 Percentage 17.6 1.4 14.2 15.6 2.4 17.9 13.5 17.2 100.0

Table 14, Imports of Other Coniferous Logs by Customs (Products of heading No.44032090 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 Total 16,469 214,670 Hohhot 5,323 28,507 Dalian 706 5,017 Changchun 0 571 Shanghai 4,192 44,220 Nanjing 0 34,685 Shenzhen 2,074 25,540 Xiamen 43 24,749 Kunming 3,634 37,767 Urumqi 0 896 Other 497 12,718

3. Imports of Tropical Logs: In September 2004, red lauan imports hit 10,567 cubic meters, of which 10,487 cubic meters were from Malaysia and 37 cubic meters from Indonesia. Teak imports registered only 4,715 cubic meters. Other tropical log imports totaled 34,600 cubic meters (Table 15-18).

Table 15, Imports of Red lauan Log by Supplying Country (Products of heading No.44034100 in China customs tariff ) Unit: m3 Malaysia Gabon Indonesia Papua New Australia Others Subtotal Guinea 2003 240,531 76 53,510 18,534 1,648 314,299 Sep.04 10,487 0 37 0 0 43 10,567 Jan.-Sep.04 147,038 0 36,600 7,622 12,940 251 204,451 Percentage 71.9 0.0 17.9 3.7 6.3 0.1 100.0

Table 16, Imports of Teak Log by Supplying Country (Products of heading No.44034910 in China customs tariff ) Unit: m3

Oct. 2004

Burma Indonesia Malaysia Thailand U.S Papua New Guinea Others Subtotal 2003 35,882 70 0 516 39 89 4,294 40,890 Sep.04 4,627 18 0 0 0 0 70 4,715 Jan.-Sep.04 43,564 34 0 50 0 10 2,812 46,470 Percentage 93.7 0.1 0.0 0.1 0.0 0.0 6.1 100.0

Table 17, Imports of Other Tropical Log by Supplying Country (Products of heading No.44034990 in China customs tariff ) Unit: 000 m3 Malaysia Cameroon Equatorial Gabon U.S Papua New Indon Other Subtotal Cuinea Guinea esia Congo 2003 221.2 120.5 32.7 118.6 0.6 20.8 5.2 61.4 86.4 667.4 Sep.04 5.8 11.6 3.6 2.0 0.0 0.0 0.0 9.1 2.5 34.6 Jan.-Sep.04 82.5 81.0 19.6 35.0 0.5 19.5 0.0 48.2 51.9 338.3 Percentage 24.4 23.9 5.8 10.3 0.1 5.8 0.0 14.3 15.3 100.0

Table 18, Imports of Tropical Log by Customs (Products of heading No.44034100-44034990 in China customs tariff ) Unit: m3 Sep.04 Jan.-Sep.04 Total 49,870 589,193 Tianjin 43 1,194 shanghai 1,995 38,345 Nanjing 37,184 370,190 Gongbei 392 21,783 Other 10,256 157,681 Note: Including 44034100,44034910,44034990

4. Imports of Non-Coniferous Logs: In September 2004, China imported 61,415 cubic meters of oak, 7,610 cubic meters of beech, 0 cubic meters of nanmu, 27 cubic meters of camphor and 5,874 cubic meters of rosewood. Imports of other non-coniferous logs stood at 353,800 cubic meters (Table 19-25).

Table 19, Imports of Oak Log by Supplying Country (Products of heading No.44039100 in China customs tariff ) Unit: m3 Russian U.S Others Subtotal 2003 250,810 23,502 44,944 319,256 Sep.04 38,718 4,837 17,860 61,415 Jan.-Sep.04 289,485 35,166 120,358 445,009 Percentage 65.1 7.9 27.0 100.0

Table 20, Imports of Beech Log by Supplying Country China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 14

Oct. 2004

(Products of heading No.44039200 in China customs tariff ) Unit: m3 Indonesia Malaysia Belgium Germany France Holland Others Subtotal 2003 155 0 15364 293039 20239 1003 14,788 344588 Sep.04 24 0 0 7317 0 0 269 7610 Jan.-Sep.04 256 0 3068 161321 6472 1785 3482 176384 Percentage 0 0 2 91 4 1 2 100

Table 21, Imports of Nanmu Log by Supplying Country (Products of heading No.44039910 in China customs tariff ) Unit: m3 Burma Indonesia Malaysia Thailand Taiwan U.S Others Subtotal 2003 18,628 0 0 0 0 0 55 18,683 Sep.04 0 0 0 0 0 0 0 0 Jan.-Sep.04 228 0 0 0 0 0 0 228 Percentage 100 0 0 0 0 0 0 100

Table 22, Imports of Camphor Log by Supplying Country (Products of heading No.44039920 in China customs tariff ) Unit: m3 Burma Indonesia Malaysia Russian Others Subtotal 2003 0 308 0 0 202 513 Sep.04 0 0 0 0 27 27 Jan.-Sep.04 0 0 0 0 171 171 Percentage 0 0 0 0 100 100

Table 23, Imports of Rosewood Log by Supplying Country (Products of heading No.44039930 in China customs tariff ) Unit: m3 Burma Indonesia laos Malaysia Thailand U.S Vietnam Others Subtotal 2003 14084 509 11279 2638 937 0 9722 16,862 56031 Sep.04 751 0 0 538 0 0 2478 2107 5874 Jan.-Sep.04 10024 263 11783 2000 787 0 12041 10826 47724 Percentage 21.0 0.6 24.7 4.2 1.6 0.0 25.2 22.7 100.0

Table 24, Imports of Other Non-Coniferous Logs by Supplying Country (Products of heading No.44039990 in China customs tariff ) Unit: 000 m3 Burma Indonesia Malaysia Cameroon Equatorial Cuinea Gabon 2003 655.1 26.2 1,593.2 16.4 96.3 99.0 Sep.04 40.0 0.0 112.4 0.0 4.5 5.8 Jan.-Sep.04 615.6 21.7 865.2 0.5 19.8 59.7 Percentage 19.7 0.7 27.7 0.0 0.6 1.9 Russia U.S New Papua New Liberia Australia Others Subtotal China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 15

Oct. 2004

n Zealand Guinea 2003 274.4 12.4 4.1 1,318.4 345.3 48.2 524.0 5,013.1 Sep.04 9.9 0.3 0.0 80.0 0.0 1.8 99.1 353.8 Jan.-Sep.04 89.1 5.9 1.0 879.0 0.0 42.5 520.5 3,120.5 Percentage 2.9 0.2 0.0 28.2 0.0 1.4 16.7 100.0

Table 25, Imports of Non-Coniferous Logs by Customs (Products of heading No.44039100-44039990 in China customs tariff ) Unit: m3 Sep.04 Jan.-Sep.04 Total 428,775 3,790,048 Haerbin 36,843 269,628 Shanghai 16,456 179,085 Nanjing 185,472 1,504,895 Ningbo 1,491 16,638 Guangzhou 50,756 338,804 Huangpu 10,213 82,808 Shenzhen 12,669 136,490 Gongbei 2,030 41,183 Kunming 36,952 610,893 Other 75,893 609,624 Note: including 44039100, 44039200, 44039910, 44039920, 44039930, 44039940, 44039990.

II: Converted Timber Imports by Supplying Countries: China’s converted timber imports totaled 483,900 cubic meters in September 2004, including 37,000 cubic meters from Malaysia, 90,600 cubic meters from Indonesia, 65,500 cubic meters from U.S (Table 26-27).

Table 26, Imports of Converted Timber by Supplying Country (Products of heading No.4407- in China customs tariff ) Unit: 000 m3 Burma Indonesia Malaysia Mongolia Thailand Tai wan Germany 2003 243.7 1,087.7 436.9 0.0 671.3 46.7 130.5 Sep.04 16.4 90.6 37.0 0.1 64.7 3.0 7.4 Jan.-Sep.04 221.1 740.7 324.4 0.4 631.8 29.3 63.1 Percentage 4.8 16.0 7.0 0.0 13.7 0.6 1.4 Russian Canada U.S New Zealand Brazil Others Subtotal 2003 561.2 43.0 380.9 676.9 261.8 971.2 5,511.9 Sep.04 50.0 27.5 33.5 65.5 19.7 68.5 483.9 Jan.-Sep.04 597.4 247.2 340.4 612.0 223.4 596.8 4,628.0 Percentage 12.9 5.3 7.4 13.2 4.8 12.9 100.0 Note: including 44071000, 44072400, 44072500, 44072600, 44072910, 44072990, 44079100, 44079200, 44079910, 44079920, 44079990.

Oct. 2004 Table 27, Imports of Converted Timber by Customs (Products of heading No.4407- in China customs tariff ) Unit: m3 Sep.04 Jan.-Sep.04 Total 483,934 4,628,002 Tianjin 19,753 170,697 Manzhouli 30,233 379,234 Hohhot 8,611 83,362 Harbin 9,827 125,709 Shanghai 131,011 1,209,692 Nanjing 5,092 44,938 Xiamen 16,009 106,380 Qingdao 7,149 55,016 Guangzhou 28,881 259,421 Huangpu 32,729 388,193 Shenzhen 136,945 1,224,529 Gongbei 8,185 71,503 Kunming 16,102 218,345 Other 33,407 290,983

1. Converted Timber of Coniferous Wood: In September 2004, Korean pine imports were 44,700 cubic meters, Kahikatea imports were 15,000 cubic meters, Montery pine imports were 29,200 cubic meters, Douglas fir imports were 910 cubic meters, and other converted timber of coniferous wood were 41,000 cubic meters (Table 28-37).

Table 28, Imports of Converted Timber of Korean pine by Supplying Country (Products of heading No.44071010 in China customs tariff ) Unit: 000 m3 Finland Russia Canada United States New Zealand Other Total 2003 7.9 383.8 6.6 8.9 5.3 8.3 420.8 Sep.04 4.9 36.3 0.2 0.0 0.2 3.1 44.7 Jan.-Sep.04 16.1 425.8 2.3 1.5 2.3 22.7 470.9 Percentage 3.4 90.4 0.5 0.3 0.5 4.8 100.0

Table 29, Imports of Converted Timber of Korean pine by Customs (Products of heading No.44071010 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 Total 44,667 470,855 Tianjin 283 4,221 Manzhouli 26,934 329,264 Hohhot 8,441 81,787 Dalian 5,360 17,899 China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 17

Oct. 2004

Changchun 0 0 Harbin 827 12,986 Shanghai 655 6,730 Nanjing 31 868 Fuzhou 0 420 Guangzhou 36 616 Huangpu 561 4,363 Shenzhen 509 3,985 Urumqi 82 678 Other 948 7,038 Table 30, Imports of Converted Timber of Kahikatea by Supplying Country (Products of heading No. 44071020 in China customs tariff ) Unit: 000 m3 United New Korea,DPR France Finland Sweden Russia Canada States Zealand Other Total 2003 8.3 3.6 39.5 8.2 23.7 58.3 17.1 5.9 24.8 189.4 Sep.04 0.4 0.4 3.4 0.7 1.9 5.0 0.5 0.2 2.5 15.0 Jan.-Sep04 4.5 2.9 32.3 10.9 19.1 60.8 16.2 3.6 16.7 169.6 Percentage 2.6 1.7 19.1 6.4 11.3 35.8 9.6 2.1 9.9 100.0

Table 31, Imports of Converted Timber of Kahikatea by Customs (Products of heading No.44071020 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 Total 15,013 169,980 Tianjin 392 7,017 Manzhouli 78 1,111 Dalian 2,368 29,591 Changchun 386 4,493 Harbin 1,249 12,769 Shanghai 3,132 30,167 Fuzhou 344 7,209 Xiamen 1171 3,288 Qingdao 217 4,757 Guangzhou 0 987 Huangpu 1,670 17,624 Shenzhen 2,707 39,302 Urumqi 348 3,978 Other 951 7,687

Table 32, Imports of Converted Timber of Montery pine by Supplying Country (Products of heading No. 44071030 in China customs tariff ) Unit: 000 m3 S.Africa Brazil Chile New Zealand Other Total 2003 6.4 5.8 62.1 137.2 18.0 229.6 China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 18

Oct. 2004

Sep.04 0.3 0.3 9.1 16.0 3.4 29.2 Jan.-Sep.04 3.4 4.1 72.4 132.0 21.8 233.7 Percentage 1.5 1.8 31.0 56.5 9.3 100.0

Table 33, Imports of Converted Timber of Montery pine by Customs (Products of heading No.44071030 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 Total 29,203 233,745 Tianjin 6,963 45,920 Shanghai 8,434 72,686 Fuzhou 0 919 Xiamen 869 2,736 Huangpu 1,833 26,655 Shenzhen 10,297 79,823 Jiangmen 81 271 Other 726 4,735

Table 34, Imports of Converted Timber of Pseudotsuga taxiflia by Supplying Country (Products of heading No. 44071040 in China customs tariff ) Unit: 000 m3 S.Africa Canada Other Total 2003 0.39 13.19 1.69 15.27 Sep.04 0.00 0.84 0.06 0.91 Jan.-Sep.04 0.21 6.38 0.76 7.35 Percentage 3 87 10 100

Table 35, Imports of Converted Timber of Pseudotsuga taxiflia by Customs (Products of heading No.44071040 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 Total 906 7,345 Dalian 0 446 Shanghai 276 3,508 Qingdao 0 779 Shenzhen 562 1,570 Gongbei 68 529 Other 0 513 Table 36, Imports of Converted Timber of Other coniferous Wood by Supplying Country (Products of heading No. 44071090 in China customs tariff ) Unit: 000 m3 China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 19

Oct. 2004

United New Burma Indonesia Singapore S.Africa Russia Argentina Brazil Canada States Zealand Other Total 2003 53.13 33.47 32.45 9.47 28.48 17.46 42.76 179.76 28.43 46.43 46.39 518.22 Sep.04 0.80 0.06 0.00 0.00 2.01 0.75 3.06 20.17 3.22 2.42 7.70 40.19 Jan.-Sep04 47.80 1.24 0.08 3.59 32.04 10.03 20.45 187.94 33.91 23.33 47.01 407.43 Percentage 11.7 0.3 0.0 0.9 7.9 2.5 5.0 46.1 8.3 5.7 11.5 100.0 Table 37, Imports of Converted Timber of Other coniferous Wood by Customs (Products of heading No.44071090 in China customs tariff ) Unit: m3 Port Sep.04 Jan.-Sep.04 Total 40,186 407,426 Manzhouli 1,373 27,982 Dalian 1,367 21,423 Changchun 448 7,758 Harbin 169 3,194 Shanghai 3,762 47,202 Nanjing 2146 2,859 Ningbo 0 30 Fuzhou 139 2,045 Xiamen 6,928 45,388 Qingdao 991 7,323 Guangzhou 923 2,813 Huangpu 264 5,587 Shenzhen 17,946 148,588 Gongbei 77 2,892 Nanning 0 393 Kunming 799 47,806 Other 2,854 34,143

2. Converted Timber of Tropical Wood: 107,000 cubic meters were imported in September 2004, including 14,600 cubic meters from Malaysia and 67,200 cubic meters from Indonesia (Table 38-39).

Table 38, Imports of Converted Timber of Tropical Wood by Supplying Country (Products of heading No.44072400-44072990 in China customs tariff ) Unit: 000 m3 Burma Indonesia Malaysia Canada U.S New Zealand Others Subtotal 2003 43.4 661.3 171.3 6.1 13.8 0.8 258.1 1154.8 Sep.04 11.1 67.2 14.6 0.4 1.4 0 12.3 107.1 Jan.-Sep.04 41.0 488.4 117.7 7.6 13.5 0.0 218.1 886.2 Percentage 4.6 55.1 13.3 0.9 1.5 0.0 24.6 100.0 Note: including 44072400, 44072500, 44072600, 44072910, 44072990.

Oct. 2004

Table 39, Imports of Converted Timber of Tropical Wood by Customs (Products of heading No.44072400-44072990 in China customs tariff ) Unit: m3 Sep.04 Jan.-Sep.04 Total 115,897 895,974 Tianjin 694 7,444 Dalan 241 1,372 Shanghai 87,639 680,491 Fuzhou 0 623 Xiamen 1,879 16,617 Guangzhou 2,049 18,588 Huangpu 2,332 28,660 Shenzhen 13,862 66,532 Other 7,201 75,647 Note: including 44072400, 44072500, 44072600, 44072910, 44072990.

3. Converted Timber of Other Non-coniferous Wood: Imports were 212,100 cubic meters in September 2004, including 21,000 cubic meters from Malaysia, 13,900 cubic meters from Indonesia and 55,800 cubic meters from U.S (Table 40-41).

Table 40, Import of Converted Timber of Other Non-coniferous Wood by Supplying Country (Products of heading No.44079100-44079990 in China customs tariff ) Unit: 000 m3 Burma Indonesia Japan Malaysia Taiwan Canada U.S New Others Subtotal Zealand 2003 145.9 370.9 5.5 257.7 25.3 105.7 590.9 65.5 1,298.2 2865.5 Sep.04 13.3 13.9 0.2 21.0 1.2 5.3 55.8 0.0 101.3 212.1 Jan.-Sep04 159.1 227.9 6.4 193.9 12.3 61.2 509.3 61.1 996.1 2227.2 Percentage 7.1 10.2 0.3 8.7 0.6 2.7 22.9 2.7 44.7 100.0 Note: including 44071900, 44079200, 44079910, 44079920, 44079990.

Table 41, Import of Converted Timber of Other Non-coniferous Wood by Customs (Products of heading No.44079100-44079990 in China customs tariff ) Unit: m3 Sep.04 Jan.-Sep.04 Total 214,451 2,269,262 Shanghai 22,769 333,078 Fuzhou 2,458 17,063 Guangzhou 24,611 227,811 China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 21

Oct. 2004

Huangpu 24,790 300,790 Shenzhen 81,952 842,090 Gongbei 6,182 54,027 Kunming 13,021 138,094 Other 38,668 356,309 Note: including 44071900, 44079200, 44079910, 44079920, 44079990.

III. Plywood, Fiberboard & Wood Pulp Imports

Plywood: In September 2004, plywood imports amounted to 57,900 cubic meters, of which 29,500 cubic meters were from Indonesia and 12,000 cubic meters from Malaysia. Plywood exports hit 383,000 cubic meters in September 2004. (Table 42- 43).

Table 42, Imports of Plywood by Supplying Country (Products of heading No.44121300-44129900 in China customs tariff ) Unit: 000 m3 Indonesia Malaysia Korea Rep Taiwan Others Subtotal 2003 534.4 137.5 32.7 17.1 76.1 797.8 Sep.04 29.5 12.0 1.2 0.7 14.5 57.9 Jan.-Sep.04 376.2 106.2 29.7 5.9 71.8 589.8 Percentage 63.8 18.0 5.0 1.0 12.2 100.0 Note: including 44121300, 44121400, 44121900, 44122200, 44122300, 44122900, 44129200, 44129300, 44129900.

Table 43, Export of Plywood by Supplying Country (Products of heading No.44121300-44129900 in China customs tariff ) Unit: 000 m3 United Hong Saudi Korea Arab Taiwan United United Kong Japan Israel Arabia Singapore Rep Emirat prov Belgium Kingdom States Other Total 2003 177.7 265.9 117.4 79.0 80.6 293.9 71.0 134.7 41.1 45.0 394.5 341.1 2042.0 Sep.04 18.0 28.8 12.0 14.5 12.1 21.6 10.6 20.1 5.3 20.8 95.3 123.9 383.0 Jan.-Sep.04 133.4 240.5 100.3 66.6 104.8 265.3 133.6 207.4 47.1 110.7 970.2 741.0 3120.9 Percentage 8.7 13.0 5.7 2.1 3.4 8.5 4.3 6.6 1.5 3.5 31.1 23.7 100.0

Fiberboard: In September 2004, fiberboard imports were 66,800 MT, including 14,400 MT from Malaysia and 11,800 MT from Thailand (Table 44).

Table 44, Imports of Fibreboard by Supplying Country (Products of heading No.44111100-44119900 in China customs tariff ) Unit: 000MT China-EU Center for Agriculture Technology, Ministry of Agriculture 55,Nongzhan Beilu, Chaoyang District, Beijing 100026, China Tel: 86-10-6419-5216, 6419-5218/5219 Fax: 86-10-64195217 E-mail: [email protected] Page 22

Oct. 2004

Indonesia Malaysia Korea Rep Thailand Taiwan Germany 2003 69.6 249.6 5.8 128.4 3.7 69.6 Sep.04 9.6 14.4 4.1 11.8 0.2 0.9 Jan.-Sep.04 72.7 177.4 13.0 98.7 1.4 16.4 Percentage 11.4 27.9 2.0 15.5 0.2 2.6 Argentina U.S Australia New Zealand Others Subtotal 2003 24.9 8.7 135.6 84.5 195.7 975.9 Sep.04 0.6 0.2 9.7 7.4 7.8 66.8 Jan.-Sep.04 12.6 2.8 93.5 72.2 75.9 636.7 Percentage 2.0 0.4 14.7 11.3 11.9 100.0 Note: including 44111100, 44111900, 44112100, 44112900, 44113100, 44113900, 44119100, 44119900.

Wood Pulp: In September 2004, wood pulp imports reached 498,300 MT, including 112,900 MT from Canada, 86,300 MT from Chile, 114,100 MT from Indonesia and 56,500 MT from Russia (Table 45). Table 45, Imports of Wood Pulp by Supplying Country (Products of heading No.47010000-47050000 in China customs tariff ) Unit: 000MT Russian Chile Canada U.S Indonesia Brazil New Others Subtotal Zealand 2003 886.9 486.9 1460.2 509.5 1185.9 12.7 155.8 1290.8 5988.6 Sep.04 56.5 86.3 112.9 38.9 114.1 1.0 14.1 74.5 498.3 Jan.-Sep.04 684.8 448.9 1326.6 534.5 1044.4 24.0 190.6 1166.9 5420.7 Percentage 12.6 8.3 24.5 9.9 19.3 0.4 3.5 21.5 100.0 Note: including 47010000, 47020000, 47031100, 47031900, 47032100, 47032900, 47041100, 47041900, 47042100, 47042900, 47050000.