KUCHING: China has significantly cut down the import volume of logs and sawnwood in October 2024 as their average import prices have risen.
For the month under review, China’s cumulative wood imports reached 4.66 million cubic metres (cu m), marking a 10 per cent decline compared to the same period in 2023.
Within this total, the import volume of logs amounted to 2.67 million cu m, registering 11 per cent year-on-year decrease, while sawnwood imports stood at 1.99 million cu m, reflecting an eight per cent drop from last year, according to Chinese Customs data.
“Despite these reductions, the average import price per unit for both logs and sawnwood increased.
Data also shows that there was a sharp decline in the import volume of some traditional (timber) species.
For example, both Okoume logs and Merbau sawnwood saw a 78 per cent decline in import volume this month,” according to latest Global Timber Index (GTI)-China Index Report in November 2024.
Meanwhile, the report said currently, China’s subsidy policies for home furnishing and kitchen & bathroom renovations have been implemented nationwide, and their positive effects are gradually emerging.
According to China’s Ministry of Commerce, by November 10, the country had subsidised 10.38 million pieces of products associated with partial kitchen and bathroom renovations, and 8.2 million pieces of furniture and home furnishing products.
And the latest report from China’s National Bureau of Statistics shows that in October, the total retail sales of furniture in China reached 15.2 billion yuan (RM9.2 billion), representing a 7.4 per cent year-on-year increase.
“On November 15, the first working meeting for the revision of the country’s national standard “Chinese Main Wood Names” was held. Since 1977, the standard has been implemented for nearly 27 years.
“And the standard after revision will further align with international and domestic markets to meet the needs of Chinese timber trade,” added the report. In November, the GTI-China index reveals that the country’s timber export orders continued to show a positive trend.
For the month under review, the index registered 49.7 per cent, a decrease of 1.2 percentage points from the previous month; fell below the critical value (50%) after two months, indicating that the business prosperity of the superior timber enterprises represented by GTI-China index shrank from October.
Despite the slight slowdown in China’s wood processing industry in November, the volume of export orders increased compared to the previous month.
The main challenges reported by GTI-China enterprises in November were difficulties to procure raw materials, a lack of orders, and decrease in the number of customers in the timber market as well as slow in the recovery of funds.
To mitigate these challenges, they suggested adjusting production to avoid overcapacity, expand international markets to increase orders, and broaden financing channels.
Meanwhile, Thailand’s timber market had performed better in November 2024, with the GTIThailand index increased by 6.1 percentage point to 50.3 per cent, rose above the critical value after two months.
This indicated that the business prosperity of superior timber enterprises represented by the GTI-Thailand index expanded from October.
“Despite severe flooding in many parts of Thailand this month, the timber sector had demonstrated strong development resilience, with overall stable volume of harvesting and an increase in both production and new orders compared to the previous month,” said the GTIThailand Report.
