Timber prices set to rise in China
Apr 06, 2010. China’s 2010 plan shows that the national policy is tending towards a scaling down of domestic harvesting and domestic timber supply. In a situation of declining domestic and international supplies but growing demand, price levels are set to climb and at some point substitutes for wood will gain market share.
Apr 06, 2010. /Lesprom Network/. China’s 2010 plan shows that the national policy is tending towards a scaling down of domestic harvesting and domestic timber supply, ITTO reported.
Growth levels in China’s plantations of fast growing species peak at about the fifth year after planting and some 68% of the current plantations are at the early stage of growth. Analysts say that the main way China can quickly increase forest carbon sequestration is to reduce harvest levels in the plantations, thereby maintaining the forest cover.
International sources of timber are becoming tighter due to increasing awareness of the need for forest protection and changes in timber trade policies in supply countries. In recent years tropical supply countries have reduced their forest harvests and raw material exports and this has affected wood product output in China.
Timber consumption for domestic home decoration and furniture production is said to account for 65% of the enduses for wood in China. As the rate of house building accelerates in China, so does consumption of wood products. In a situation of declining domestic and international supplies but growing demand, price levels are set to climb and at some point substitutes for wood will gain market share.