MDF/HDF consumption in China to reach 12-13 million cub m

Oct 22, 2004. /Lesprom Network/. The demand for MDF/HDF in China increased due to the fast development of furniture, package and car industry.

According to ITTO estimations, in 2003 MDF consumption in furniture industry was 10 million cub m, MDF/HDF consumption by floor covering industry was 1.44 million cub m. In 2004 MDF/HDF consumption is likely to reach 12-13 million cub m.

MDF/HDF boards consumption were distributed across the provinces of China as follows:

Local analysts link the growth of MDF consumption to the big market potential, high profitability of the sector and favorable political conditions.

The government introduced favorable VAT policies for the goods produced of sawing waste, low-quality and low-size timber in order to protect high-quality timber resources and provide efficient management of raw materials. The following policy was launched in 2001 and will remain valid till December, 31 2005.

A number of companies have installed advanced equipment for MDF/HDF production. Da Ya Wood Group invested $362.5 billion in the extension of production capacities and modern research of MDF production. The company intends to raise MDF/HDF production to 1.5 million cub m.

The 2^nd largest MDF/HDF manufacturer in China is Zhejiang Luyuan Wood Co. Ltd. – 800 thousand cub m/yr, followed by Guangxi Sanwei Forest Products Industry Co. Ltd. – 650 thousand cub m, Zhejiang Lishui European Science Wood-based Panel Co. Ltd – 600 thousand cub m.