China's Redwood Import Situation Analysis Report for the First Half of the Year

In the first half of 2012, the mahogany market in China basically showed that the number of imported mahogany increased significantly and the price rose significantly. In particular, the prices of large-diameter high-quality mahogany logs, which are rare and valuable species, rose even more significantly. The sales of the domestic redwood products market remained weak, but the selling prices no longer declined and basically stabilized. According to the import statistics of the national customs and the development of the mahogany industry in the first half of the year, the Chinese Redwood Committee made the following analysis of the import situation of mahogany in the first half of 2012 for reference.

(I) Import of precious hardwoods The data from the national customs from January to June 2012 show that China has imported precious hardwood timber from the major exporters of mahogany raw materials (referring to the unit price above 400 USD/cubic meter, the same below) 3.43 million. Cubic meters (based on the volume of the original wood, the same below), a year-on-year increase of 217%, with a total value of 271.2554 billion yuan (calculated at the exchange rate of US$ 6.30 million, the same below), a significant year-on-year increase of 152.20% .

From January to June 2012, the imports of our precious hardwood products were analyzed by China Redwood Committee:

1. Both the quantity and value of imported precious broad-leaved timber have increased significantly, indicating that the demand for high-grade broadleaf wood has increased in China.

2. It is worth noting that from March to March this year, there was a noticeable pullback in the quantity of precious broad-leaved timber imported from China. The main reason was that the international and domestic economic environment was severe in March-April this year, and the market funds were relatively tight. Importers were More cautious.

The growth of imports of precious hardwoods in March, May and June is relatively strong. Some investors in the mahogany industry believe that central banks around the world will start printing machines, release liquidity, and prices of resource raw materials such as mahogany will further increase.

(1) Among them: Imports of precious broad-leaved logs From January to June 2012, China imported 1.936 million cubic meters of precious hardwood timber from the major exporters of mahogany raw materials, an increase of 210.40% over the same period of last year; total value equivalent to *** 630.28 Billion; while the unit price of imported logs decreased by 18% compared with the same period in 2011.

The China Redwood Committee analyzed that there are two main reasons:

1. High-quality and rare-size tree species with high quality have been increasingly reduced. The quality of imported logs has been declining, and the number of logs imported from tree species with low unit prices has increased significantly.

2. The phenomenon of artificially reporting the low price of imported logs at the time of import declaration by individual importers.

From the perspective of importing countries, Africa is still the main importer of precious hardwood timber logs in China, accounting for about 65% of the total amount of imported timber (60% in the same period of last year); traditional “Southern Asia” (including Southeast Asia, South Asia, and Oceania) Some countries have about 30% of the total (about 38% in the same period of last year); Central and South America is about 5% (about 2% in the same period of last year).

(2) Among them: Imports of precious hardwood sawn timber From January to June 2012, China's import of precious hardwood sawn timber reached 1.381 million cubic meters, an increase of 216% over the same period of last year; total value was equivalent to 40.604 billion yuan. yuan. The year-on-year increase of 169%. Continue to show a dramatic increase in imports. However, from the perspective of unit price, it has decreased by 14.89% compared with the same period of last year.

China Redwood Committee analyzed that:

1. The increase in imports of precious broad-leaved sawn timber in Southeast Asia is mainly limited by timber export policies of exporting countries, such as Thailand and Vietnam, which impose stricter log export restrictions.

2. Some domestic companies have increased investment in semi-finished products processing factories and other projects in Southeast Asian timber export countries.

3, *** Strong currency exchange rates for some Southeast Asian timber exporting countries, but also a non-negligible cause for the decline in the price of imported lumber.

From the perspective of importing countries, the traditional “Southern Sea Area” is the main source of precious broad-leaved sawn timber in China, which is more than 50 percentage points higher than the same period of last year, accounting for about 83%, compared with about 30% in the same period last year; In Central and South America, there was a modest decline, accounting for about 10% (about 30% in the same period of last year) and 7% (about 40% in the same period of last year).

Finally, we can see that in the first half of 2012, the quantity and value of precious broad-leaved lumber imported from China have grown noticeably. So, what about the sales of these precious hardwood timbers imported from the market?

The comprehensive information of China Redwood Committee is summarized as follows:

1. The trading of precious timber imported from the traditional “Nanyang region” picked up. Among them, the price of high-quality wood for precious tree species rose. Such as: sandalwood sandalwood (lobular rosewood) and Dalbergia (red rosewood) high quality and high price phenomenon.

2. The trading of rare broad-leaved lumber in Africa is flat and prices are basically stable.

3, South American imports of precious hardwood timber market transactions are relatively active and prices are stable.

(II) Analysis of Imports Data of China's Customs Redwood Classes Customs data show that from January to June 2012, China imported 488,080 cubic meters of redwood, an increase of 196,000 cubic meters, an increase of 88.7%. Among them, 381,000 cubic meters of mahogany logs were imported, an increase of 188,000 cubic meters, an increase of 97.4%; mahogany imports were 436.563 million dollars, an increase of 76.08%. Redwood sawwood imports 36,000 cubic meters, an increase of 28.28% over the same period of last year. As for the unit price of imports, the unit price of imported mahogany logs fell by 10.8% compared with the same period of last year, while sawn timber rose by 10%.

It is worth noting that: from January to June 2012, China imported 18.907 million cubic meters of wood, a year-on-year decrease of 8.88%. However, the import of redwood logs and redwood sawn timber in China still maintains a strong momentum, which is inextricably linked to the recovery of demand in the domestic redwood market.

(III) Concluding remarks From the analysis of the import situation of mahogany in the first half of 2012, we can see that the mahogany market in the first half of the year in China was basically in the process of bottoming out. In the past few years, after a period of rapid development, the mahogany industry has seen a large influx of funds. The industry has grown too fast and production has soared. In recent years, due to the combined effects of the country’s macroeconomic policies, the market, and the increase in labor costs, some structural imbalances have been concentrated. This has led to the inadequacy of preparations by some industries and the failure to respond. At present, it is necessary to get rid of this situation as soon as possible to realize the healthy development of the mahogany industry. On the one hand, we need to do a good job in industrial planning and structural adjustment. On the other hand, we need our industry to do a good job of self-discipline in the industry, with the banner of “city letter” and “culture”. Improving the end market of mahogany and increasing consumer confidence is the fundamental way to solve the current relative surplus of so-called mahogany products.