JUNE China Bulletin: Annual Subscription (12 Issues) US$425 Click HERE to order online. 1. China Industry News in Brief 2

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1 JUNE 2015 Special Report: China Commercial Timber Harvest Reduction in NE China A trial regulation on prohibiting the commercial timber harvest in key state-owned natural forest areas in Heilongjiang province (north-east China) commenced in April On March 2015, the China government announced the new regulations on stopping all commercial harvest for natural forests nationwide. During last several years, timber production from plantations increased quickly and it is estimated that plantations currently supply around 70% of the total industrial timber production volumes in China. According to the draft plan, China will establish more than 13 million hectares of National Reserve Forest Area, to increase the harvest by an additional 150 million of timber supply capacity by Meanwhile, more Chinese companies have seen good opportunities of investing in Russia to ship more logs and lumber from Russia to China, especially as Russian timber has recently offered better competiveness due to Russian currency devaluation. However, there are also big challenges investing in Russia, with higher and higher cost and risks compared with several years ago. (MORE available to subscribers only). 1. China Industry News in Brief Wuhan-Xinjiang-Europe Train Took Russian Timber back China in first time New Pine Furniture Production Factory under Construction in Manzhouli Imported Timber Fumigation Facility Proposal Approved in Lanshan Weifang Sime Darby Port Received Log Import Qualification China s Softwood Log Inventories at Ocean Ports 3 2. Special Report: China Commercial Timber Harvest Reduction in NE China China Export & Import Statistics China Exports China Imports China Export & Import Tables North American Log & Lumber Exports to China China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 28 Annual Subscription (12 Issues) US$425 Click HERE to order online

2 MAY 2015 Special Report: China Log & Lumber Trade Overview 2015/Q1 According to the trade data from China Customs, China imported 10.7 million m3 of logs during the first quarter of 2015, a decline of 15% from the same period in In the first quarter of 2015, China imported 3.6 million m³ of softwood lumber valued at 772 million USD a decline of 6.5% by volume and 7.5% by value as compared with the same period of In the first quarter, Russian lumber remained the largest softwood lumber supplier to China, and its volume reached 1.6 million m3, an increase of 9% compared with the same period of last year. Canada, as the second largest supplier to China, exported around 1.2 million m3 of softwood lumbers to China in Q1, a decrease of 22% as compared with the same period of last year. Meanwhile, softwood lumber imports from Finland and Sweden soared by 45% and 41% by volume respectively in Q1 from weakening currencies. With the currency advantages being achieved by exporters in Russia, Sweden and the European Union, as well as the cheaper logs imported from North America, lumber exports from Canada and USA had seen weaker competitiveness in the China market recently. 1. China Industry News in Brief Australia log import increased quickly in Changshu port Guangxi Veneer Industry Union Starts Operation China s Softwood Log Inventories at Ocean Ports 2 2. Special Report: China Log & Lumber Trade Overview 2015/Q China Log & Lumber Trade Real Estate Investment Trends 7 3. China Export & Import Statistics China Exports China Imports China Export & Import Tables China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 25 Coming Soon: Vienna International Wood Products / Markets Conference, Expo & Tours June 16-21, ences/ Annual Subscription (12 Issues) US$425 Click HERE to order online

3 APRIL 2015 Special Report: China Wood Products Exports: Overview of 2014 According to statistics released by China Customs, China s forest products trade value was 138 billion USD in 2014, representing an increase of 9.5% compared with The export volume and value of wood furniture, doors, and wood-based panels have all seen sizable increases in 2014, compared with last year. In 2014, RMB devaluation against USD brought some good news for Chinese exporters, however, the cost of raw materials, labor and energy were all increasing, in addition, with more and more awareness of the airpollution issue, China government has now made new regulations on environmental issues and manufacturers have to spend more to comply with the requirements of the new regulations. For example, in Linyi city where the most concentrated areas for plywood production and exports are, all plywood mills must upgrade their boiler systems to use cleaner coal, or transfer to other environmental energy options, such as solar, natural gas or electricity to replace coal. China s wood products and furniture manufacturers are facing major challenges with higher and higher costs in the coming years.... MORE 1. China Industry News in Brief Suifenhe Log Imports up 3% by Volume in Q Japan Log Export to China up nearly 100% in Commercial Harvest prohibited in Inner Mongolia and Jilin starting from April 1st China s Softwood Log Inventories at Ocean Ports 2 2. Special Report: China Wood Products Exports: Overview of China Export & Import Statistics China Exports China Imports China Export & Import Tables China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 27 Mark Your Calendar: Global Softwood Log & Lumber Conference May 7, 2015 Fairmont Hotel Vancouver es-vancouver/2015-conference/ Annual Subscription (12 Issues) US$425 Click HERE to order online *********************************************** Vienna International Wood Products / Markets Conference, Expo & Tours June 16-21, ences/

4 MARCH 2015 Special Report: Global Currency Volatility Cheaper Russian Wood Upsetting China (& World) Market Prices Geopolitics, coupled with the rapid decent in oil prices and the Russian ruble, are now combining to have an impact on wood products supply and prices. This became highly evident during WOOD MARKETS supply chain tour in China undertaken in the last two weeks of January. Russian exporters have been able to lower their U.S. prices to key markets (such as China) while increasing their net returns. This situation has caused softwood lumber exporters from other countries to reduce their prices to China as well. It is considered near break-even for some European exporters. The impact of cheaper Russian lumber coming into northern Chinese ports is pushing more North American and European lumber into southern Chinese ports. At the same time, virtually all distributors and wholesalers were planning to drop inventory levels in Q1/2015 in anticipation of more Russian lumber being available at potentially lower prices. Many are planning to keep inventories lean until they believe the bottom of the market has passed...more Mark Your Calendar: Global Softwood Log & Lumber Conference May 7, 2015 Fairmont Hotel Vancouver es-vancouver/2015-conference/ *********************************************** Vienna International Wood Products / Markets Conference, Expo & Tours June 16-21, ences/ 1. China Industry News in Brief AVIC s veneer project in Russia starts operation China OSB import volumes up 103% in Linyi Wood Products export exceed 2 billion USD in China will stop commercial logging in natural forests China s Softwood Log Inventories at Ocean Ports Log Inventories at Ocean Ports: Analysis5 2 Special Report: Global Currency Volatility 6 3 The Chinese government s Work Report for China Real Estate Industry Summary in China Export & Import Statistics China Exports China Imports China Export & Import Tables North American Log & Lumber Export to China China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 35 Annual Subscription (12 Issues) US$425 Click HERE to order online

5 FEBUARY 2015 Special Report: China Timber & Wood Products Imports: Overview of 2014 According to the statistics from State Forestry Administration, China s forest products industry output value and trade value have reached 848 billion USD and 138 billion USD in 2014, up 11% and 9.5%, respectively compared with China log, lumber and wood-based panel imports all have had substantial growth in In 2014, 51.4 million m³ of logs valued at nearly USD 11.8 billion were imported into China, an increase of 14% by volume and 26% by value from the year of Of the total log imports, softwood log imports were valued at USD 5.4 billion with a volume of 35.7 million m3, while the hardwoods were 15.7 million m3 in volume and were valued at nearly 6.3 billion USD. The import of softwood logs increased 8% in volume and 7% in value, respectively, compared with 2013, whereas the import volume and value of hardwood logs grew much higher, or by 28% and 49%, respectively, compared with MORE 1. China Industry News in Brief Manzhouli log and lumber: imports reach 9.3 million m3 in Dongguan Shatian Port: log and lumber import up 159% in Guangdong furniture: exports reach 19.6 billion USD in China s Softwood Log Inventories at Ocean Ports 2 2. Special Report: China Timber & Wood Products Imports: Overview of China Export & Import Statistics China Exports China Imports China Export & Import Tables China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 26 Mark Your Calendar: Global Softwood Log & Lumber Conference May 7, 2015 Fairmont Hotel Vancouver es-vancouver/2015-conference/ Annual Subscription (12 Issues) US$425 Click HERE to order online *********************************************** Vienna International Wood Products / Markets Conference, Expo & Tours June 17-20, ences

6 JANUARY 2015 Special Report: China Softwood Market Update - Ruble Devaluing Overall, the Russian ruble has devalued from approximately 30 rubles per US dollar at the start of 2014, to over 55 in mid-december, and additionally to over 60 in early January this year. This huge devaluing of the ruble has had an enormous impact on log and lumber prices in China wholesale markets; especially for the softwood species, making it a tough year in 2014 with 2015 starting even more off balanced. A weakening ruble during the second half of 2014 has created a better competitive advantage for Russian logs and lumber in the Chinese market, especially in Northern China markets, such as Dalian, Tianjin, and even Qingdao ports. Russian timber is taking back some market share from SPF lumber and especially logs from New Zealand, North America and European countries...more 1. China Industry News in Brief China Log and Lumber Imports at Selected Ports China s Softwood Log Inventories at Ocean Ports 2 2. Special Report: China Softwood Market Update Impacts of a Devalued Russian Ruble 5 3. China Export & Import Statistics China Exports China Imports China Export & Import Tables China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 23 Mark Your Calendar: Global Softwood Log & Lumber Conference May 7, 2015 Fairmont Hotel Vancouver es-vancouver/2015-conference/ Annual Subscription (12 Issues) US$425 Click HERE to order online Vienna International Wood Products / Markets Conference, Expo & Tours June 16-21,

7 DECEMBER 2014 Special Report: China Wood-Based Panel Industry Overview China is the largest wood-based panel producing countries in the world. According to China National Forest Products Industry Association, China wood-based panel production volumes reached more than 256 million m3 in 2013, up 14% from 2012, accounting for 58% of global wood-based panel production volume. During first half of this year, China wood-based panel production volumes were 143 million m3, up 7% from the same period in Currently, China s wood-based panel industry is facing some big challenges of oversupply in panel production and, at the same time, there are some shortages in raw materials. To develop a healthier industry, China made a 10- year plan, starting in 2010, for the wood-based panel industry development...more 1. China Industry News in Brief Suifenhe log imports reach 2.7 million m3 during first three-quarters this year New Investment in OSB project in Guangxi China s Softwood Log Inventories at Ocean Ports 2 2. Special Report: China Wood-based Panel Industry Overview 5 3. China Export & Import Statistics China Exports China Imports China Export & Import Tables North America Log & Lumber Exports to China China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 28 Mark Your Calendar: Global Softwood Log & Lumber Conference May 7, 2015 Fairmont Hotel Vancouver es-vancouver/2015-conference/ Annual Subscription (12 Issues) US$425 Click HERE to order online Vienna International Wood Products / Markets Conference, Expo & Tours June 16-21,

8 NOVEMBER 2014 Special Report: Highlights of 2015 China Conference PART II The real estate market is currently experiencing a short-term correction, but it appears that the most difficult times may be closer to ending in this cycle (although the whole market seems to move from one crisis to the next). From a number of internal factors, such over-supply of units, tougher credit and prices that have increased too quickly have made the current situation very difficult. Renovations of many older shanty towns and older cities will provide strong support for the growth in the housing market. There is the potential of about 3 billion m2 of new renovations of these shanty towns and old cities in the next decade, or an annual demand of 300 million m2. Based on an average two-bedroom apartment size of 70 m2, this is the equivalent of 4.3 million housing units per year! The lumber outlook in China actually appears promising for 2015 despite the many clouds in the market throughout the second half of Softwood lumber is certainly being used and consumed, where overall inflows and outflows at ports seem to be in a general balance. There is the expectation of a shift in where lumber exports to China will be sourced from, including which sources will achieve market share gains at the expense of others...more ANNOUNCING: Vienna International Wood Products / Markets Conference, Expo & Tours June 16-21, China Industry News in Brief Manzhouli lumber imports reach 1.2 million m3 in third quarter Jingjiang log imports reach 2.55 million m3 in third quarter China s Softwood Log Inventories at Ocean Ports 2 2. Special Report: Highlights of 2015 China Conference PART II China Real Estate Opportunity China Real Estate - Current Situation China Lumber Market Supplier Trends China Lumber Market Outlook China Export & Import Statistics China Exports China Imports China Export & Import Tables China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 29 Annual Subscription (12 Issues) US$425 Click HERE to order online More Details HERE

9 OCTOBER 2014 Special Report: China Log Market: From Crazy to Dangerous Highlights of China Conference The 2014 WOOD MARKETS China conference in Qingdao on September 15 brought together 260 Chinese and international delegates with conference speakers who provided interesting perspectives on the current and future states of China s housing, log and lumber markets. Coupled with WOOD MARKETS four-day tour of the major log and lumber ports in northeastern China, it is becoming clear that short-term market dynamics are quite mixed for logs and lumber, as well as housing. The following profiles trends in China s timber supply. The outcome of the conference and tours certainly point to lots of change going on in China, and it looks as if there are going to be a variety of short-term winners and losers as the construction market takes a breather. However, there may be some growth opportunities in the renovation, decoration and furniture markets, so it is not all bad for the country and this is not to mention the overall huge volumes of logs and lumber still being exported to China s factories!.. MORE in the full version for subscribers only. 1. China Industry News in Brief Top China Log and Lumber Importers in 2014 H China s Softwood Log Inventories at Ocean Ports 4 2. Special Report: China Log Market: From Crazy to Dangerous Highlights of China Conference 7 3. China Export & Import Statistics China Exports China Imports China Export & Import Tables China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 29 Annual Subscription (12 Issues) US$425 Click here for order form _

10 SEPTEMBER 2014 Special Report: China Real Estate Industry Update According to a new report released by National Bureau of Statistics, the total investment in China s real estate development in the first seven months of 2014 was over US$800 billion (5.04 trillion RMB), a nominal increase of 13.7% year-over-year. The investment in residential buildings was over US$545 billion, up 13.3% year-over-year, and it accounted for 68.2% of China s real estate development investment. With a trend of falling prices, this has already attracted some bargain hunters into the market. Government policies on the real estate industry are being gradually loosened to try and prevent a housing market collapse. So far, more than 37 cities have lifted restrictions on purchase restrictions, although eight of larger cities still have kept the purchase restrictions as these markets are still overheated. Also, some commercial banks have re-started preferential interest rates for first-time buyers. Relaxed credit policy will have a direct and positive impact on many property markets. All of these efforts are designed to prop up the sagging real estate market in China, even though it may already be overpriced relative to what many potential buyers can afford to pay...more UPCOMING EVENTS 4 th China/Global Timber and Wood Products Trade Conference Sept 15-16, Day Northeast China Port & Industry Tour Sept 17-19, China Industry News in Brief Taicang Port Log & Lumber imports up 45% during first 7 months of Furniture Industry Production Value grew 8% in H in Sichuan Province China s Softwood Log Inventories at Ocean Ports 2 2. Special Report: China Real Estate Industry Update 5 3. China Export & Import Statistics China Exports China Imports China Export & Import Tables North America Log & Lumber Export to China China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 33 Annual Subscription (12 Issues) US$425 Click here for order form _

11 AUGUST 2014 Special Report: China Timber Imports - Overview for 2014 H1 According to official data released by China National Bureau of Statistics (NBS), China's GDP grew 7.4% in the first half year of 2014 to 26.9 trillion RMB (US$4.4 trillion), as compared to the same period in The growth rate was 0.2% lower than in the same period last year. The GDP growth rate in the first quarter is 7.4% and 7.5% in the second quarter. Chinese export and import values reached US$2.02 trillion in first half of this year, an increase of 1.2% over the same period last year. Export values were US$1.06 trillion, up 0.9%, and import values amounted to US$959 billion, up 1.5%. The trade surplus reached US$102.9 billion in the first half of Continuing with the same trends in the first half of 2013, China log and lumber imports have seen substantial increases in both volume and value. More than 26.9 million m³ of logs valued at US$6.4 billion..more 1. China Industry News in Brief Log import trends at major Chinese ports in the 2014 H China plywood export volumes: up 15% in 2014 H China s Softwood Log Inventories at Ocean Ports 4 2. Special Report: China Timber Imports - Overview for 2014 H China Export & Import Statistics China Exports China Imports China Export & Import Tables China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 32 UPCOMING EVENTS 4 th China/Global Timber and Wood Products Trade Conference Sept 15-16, 2014 Annual Subscription (12 Issues) US$425 Click here for order form 3-Day Northeast China Port & Industry Tour Sept 17-19, 2014 nternational WOOD MARKETS Group Inc. Page 2

12 JULY 2014 Special Report: China s Timber Strategic Reserve Bases In general, China is a country that lacks sufficient forest cover and has a weak ecologic system, poor ecosystem function, a shortage of ecological products, and a shortage of rare and largediameter timbers. The effective capacity of the forests cannot meet the growing demand of timber and wood products in China or from the perspective of national ecological security or self-sufficiency. In 2013, SFA organized and completed a "National Timber Strategic Reserve Base Construction Plan ( )", hereinafter referred to as the "Plan". The objective is to establish 210 million mu (14 million hectares) of Timber Strategic Reserve Bases at 18 base locations from six large areas in 25 provinces by This will be accomplished by: Adopting scientific management, Cultivating rare and large diameter timber, and Establishing structured and optimized timber reserve resources systems When this plan is completed, it is expected to provide an additional 95 million m3 of timber supply capacity annually, or an additional 14% of China s total demand in This huge incremental supply should ease some of the expected the gaps between domestic timber supply and total demand MORE UPCOMING EVENTS 4 th China/Global Timber and Wood Products Trade Conference Sept 15-16, China Industry News in Brief Three new species added into CITES III list US Hardwood lumber exports to China grew 33% in China is the second largest export markets for US softwood plywood Jingjiang Port Timber Imports up 15% by volume in H China s Softwood Log Inventories at Ocean Ports 4 2. Overview on China s Timber Strategic Reserve Bases 6 3. China Export & Import Statistics China Exports China Imports China Export & Import Tables China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 28 Annual Subscription (12 Issues) US$425 Click here for order form 3-Day Northeast China Port & Industry Tour Sept 17-19, 2014 ernational WOOD MARKETS Group

13 JUNE 2014 Special Report: New Opportunity for South American Timber in China Historically, South America was the main tropical hardwood supplier to China until Southeast Asia emerged to take the honours. With very strong demand from China over the last five years, softwood imports from South America have increased steadily. In 2013, China imported 989,000 m3 of softwood lumber from South America, representing 6% of China s total softwood lumber import volume. Chile, Argentina and Brazil are the three main softwood lumber supplying countries in South America to China. Chile supplied the largest volume of radiata pine lumber to China (of all other countries) in 2013, and was also the fourth largest softwood lumber supplier to China overall. However, with the increasing costs and prices of radiata pine lumber, more Chinese companies have started exploring the application of taeda pine (southern yellow pine) from Argentina and Brazil to China. Brazil was the largest softwood log supplier from South America to China in 2013, but only achieved exports of 27,000 m3. Currently most taeda pine logs exported from South America are used for peeling veneer for plywood production. Meanwhile, Eucalyptus Grandis is another plantation species from South America (Brazil and Uruguay) getting more and more awareness in China. MORE UPCOMING EVENTS 4 th China/Global Timber and Wood Products Trade Conference Sept 15-16, China Industry News in Brief China is enhancing its timber selfsufficiency ability to reduce its dependence on imported wood China s Softwood Log Inventories at Ocean Ports 4 2. Special Report: New Opportunity for South American Timber in China 6 3. China Export & Import Statistics China Exports China Imports China Export & Import Tables North America Log & Lumber Exports to China China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 31 Annual Subscription (12 Issues) US$425 Click here for order form 3-Day China Log & Lumber Port & Industry Tour Sept 17-19, 2014 nternational WOOD MARKETS Group Inc. Page 2

14 MAY 2014 Special Report: China Log & Lumber Trade Overview 2014/Q1 According to the trade data from China Customs, China imported 12.6 million m3 of logs during the first quarter of 2014, an increase of 32% from the same period in China s lumber imports were 5.6 million m3, an increase of 18.5% over the same period last year. Of the total log imports, nearly 9 million m³ were softwood logs valued at USD 1.4 billion during the first quarter of 2014, and this represented a rise of 38% in volume and 49% in value over the same period in The leading softwood log suppliers in the first quarter of 2014 were New Zealand, Russia, USA, Canada, Australia, and Ukraine. These countries had major increases in import volumes and values during Q compared with the same period of last year, and the growth rate of the import value was higher than import volume growth rate. This was especially evident for softwood log imports from Russia, as its volume increased by 22% due to a new China government policy that put on timber harvest restrictions in Heilongjiang province in north-east China. This created a temporary shortage and allowed for increased prices in both Russian logs and lumber to Northern China land ports. MORE 1 China Industry News in Brief China Log and Lumber Imports: First Quarter of China OSB production capacity is expected to reach 1 million m China Supply & Demand Update China Softwood Log Inventories at Ocean Ports 4 2 Special Report: China Log & Lumber Trade Overview 2014/Q China Log & Lumber Trade Real Estate Investment Trends 8 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 29 4 th China/Global Timber and Wood Products Trade Conference Sept 15-16, Day China Log & Lumber Port & Industry Tour Sept 17-19, 2014 Annual Subscription (12 Issues) US$425 Click here for order form nternational WOOD MARKETS Group Inc. Page 2

15 APRIL 2014 Special Report: China Softwood Log & Lumber Market Update A seven-day market trip to China s East Coast and main log and lumber ports was conducted by WOOD MARKETS Russ Taylor and Jane Guo at the end of March. The timing of the trip was very useful, as a number of the key trends were starting to change as a slowdown in China s construction industry was complicated by soaring log and lumber inventories from the major exporting countries. The market conditions in China are clearly showing that a price correction is underway. Coupled with weaker lumber prices in North America, where Canadian lumber inventories are above average from severe winter weather in the east and a truckers strike in B.C., a lumber price correction is also well underway there as well. A summary of the key themes and issues from our China trip are provided in the April 2014 China Bulletin. 1 China Industry News in Brief Log imports in Putian up 78% in the first quarter of Russian Log Imports in Suifenhe port up 25% in the first quarter of China Softwood Log Inventories at Ocean Ports 3 2 Special Report: China Softwood Log & Lumber Market Update 6 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables 18 4 China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 30 Announcing: China/Global Wood Products Conference - Sept , Day Northeast China Industry Tour - Sept , 2014 Annual Subscription (12 Issues) US$425 Click here for order form nternational WOOD MARKETS Group Inc. Page 2

16 MARCH 2014 Special Report: China Wood Products Exports: Overview of 2013 According to statistics released by China Customs, forest products trade increased again in 2013: China s forest products trade value was 126 billion USD in 2013, representing an increase of 6.1% compared with 2012; Of China s total forest products trade, exports accounted for 62.6 billion USD, an increase of 8.7% compared with 2012; Imports accounted for 63.4 billion USD, up 3.4% compared with 2012; and The forest products trade deficit was 0.8 billion USD in Furniture, paper, paperboard, and paper products, plywood, and wood products are playing the most important roles in China s forest products exports. A total of 10.3 million m³ of plywood was exported in 2013 representing a value of 5 billion USD. This represents a substantial increase of 2% in volume and 5% in value. 1 China Industry News in Brief China National Forest Area increases almost 7% from Log and Lumber imports in Jiangsu up 17% by volume in Log and lumber imports in Shandong province reached 10 million m3 in Jiangsu Happy Group announced the new project on OSB Guangxi announced a new OSB and plywood project China Forest Certification Scheme endorsed by PEFC China Softwood Log Inventories at Ocean Ports 4 2 Special Report: China Wood Products Exports: Overview of China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) North America Log & Lumber Exports to China 23 4 China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 33 Announcing: China/Global Wood Products Conference - Sept , Day Northern China Industry Tour - Sept , 2014 Annual Subscription (12 Issues) US$425 Click here for order form nternational WOOD MARKETS Group Inc. Page 2

17 FEBUARY 2014 Special Report: China Timber & Wood Products Imports: Overview of 2013 According to the initial statistics from State Forestry Administration, China s forest products industry output value and trade value have reached 4.5 trillion RMB (726 billion USD) and 125 billion USD in 2013, up 13% and 5% respectively compared with China s domestic log production is expected to reach 83.7 million m3 in 2013, up 3% from New Zealand overtook Russia for the first time as the largest annual log supplier to China, supplying 11.5 million m3 (25% of China s total log imports) to China in Russia replaced Canada as the largest lumber supplier again in 2013, to reach more than 7 million m3 and holds a 29% import market share. New Zealand log imports in 2013 increased 33.4% in volume compared with 2012, while Russian log imports in 2013 decreased 8% in volume compared with 2012, being the only country in top 10 suppliers with decreased import volume compared with From its knowledge of the Russian industry, WOOD MARKETS has been predicting lower log exports out of Russia for a number of years now unlike other reports that have been expecting increases from Russia as a result if tis reduced log export tax. Further details of why Russian log exports will be declining are addressed in the Russia: Forest Industry Competitiveness & Export Outlook to China Market Synopsis With the market in good shape at the end of the Chinese New Year break, business and trade prospects look reasonable for the next few months. Both log and lumber inventories are reported to be increasing, so market prices may become more unsettled. The overall market trend continues to be stable but no surprises anticipated. 1 China Industry News in Brief Guangxi Timber Production reached 24.8 million m3 (+18.6%) Caofeidian Port starts up and receives its first shipment of logs in January Huangdao Port (Qingdao) log imports up 109% in China Softwood Log Inventories at Ocean Ports 3 2 Special Report: China Timber & Wood Products Imports: Overview of China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) 17 4 China Prices (Note: No updates this month due to Chinese New Year) Log Prices Hardwood Lumber Prices Softwood Lumber Prices 27 Announcing: China/Global Wood Products Conference - Sept , Day Northern China Industry Tour - Sept , Day Russia Far East Industry Tour - Sept , 2014 nternational WOOD MARKETS Group Inc. Page 2

18 JANUARY 2014 Special Report: China Housing Market Update The Ministry of Housing and Urban-Rural Development (MOHURD) recently announced it will start more than 6 million units of governmentsubsidized affordable housing and complete the construction of 4.8 million units in In 2013, the country has built 4.7 million affordable houses and started construction on 6.3 million units, according to the Ministry s statistics. This level of construction was slightly higher than the original target, which was made in late Mr. Jiang, director of MOHURD, said the country will increase the supplies of land and affordable housing next year and ensure the better implementation of current policies to contain soaring housing prices in some major cities. Jiang's statement came after the latest official data showed the price of homes in large Chinese cities continued to rise in November, despite fresh cooling measures in more than a dozen cities in recent months. The average price of a new home in 100 monitored cities was 10,833 RMB (1,770 USD) per m2 in December 2013, up 11.5% from December Prices rose 0.7% from November 2013, representing the 19 th consecutive increase since June The continued increase of housing price in 2013 was mostly due to high demand and lower supply of new residential housing projects in city centers. MORE on page 4 China Market Synopsis Chinese demand remains stable to strong as wood product imports continue to increase in almost all product categories. Log inventories continue to remain in very good shape as prices inch higher. The overall market trend continues to be stable with prices flat to moving higher in most products. 1 China Industry News in Brief China North-Eastern Commercial Log Production Quota: to be down 11% in 2014 vs Log Imports at Changshu Port up 16% in China Softwood Log Inventories at Ocean Ports 2 2 Special Report: China Housing Market Update 4 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) 13 4 China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices 23 Announcing: China/Global Wood Products Conference - Sept , Day Northern China Industry Tour - Sept , Day Russia Far East Industry Tour - Sept , 2014

19 DECEMBER 2013 Special Report: China to Further Open Up Its Economy China will further open up its economy by broadening market access, boosting regional cooperation and opening up its interior and border cities, according to a policy document published by the Communist Party of China (CPC) Central Committee last month in Beijing. According to the document, China will widen market access for foreign investors. The country will keep investment policies stable, transparent and predictable. It said more efforts will be made to open up services sectors including finance, education, culture and health. Systems on market access, customs control, inspection and quarantine will be reformed, and talks concerning issues such as environmental protection, investment protection, government procurement and e-commerce will be launched. Meanwhile, Chinese Premier Li Keqiang has repeatedly emphasized the role that further rapid urbanization will play in China's development strategy. Consequently, it is widely predicted that policies to spur urban growth will headline the major economic reform plan coming soon. MORE on page 4 China Market Synopsis Chinese wood product import volumes continue to increase with almost all product categories recording double-digit increases in 2013 as compared to Log inventories remain in very good shape as log prices show steady increases. Softwood log imports over 10 months have already exceeded their 2012 volumes. The overall market trend is quite stable with prices inching higher in most products. 1 China Industry News in Brief Error! Bookmark not defined. 1.1 Timber Harvesting will be prohibited in Da/Xiao Hinggan Mountain and Changbai Mountain Forests from 2015Error! Boo 1.2 South Korea imposes anti-dumping duty on plywood imported from ChinaError! Bookmar 1.3 Ash log and lumber imports to China from Europe are now prohibitederror! Bookmark 1.4 Log imports in Zhangzhou Port up 32% in first 10 months of this yearerror! Bookmark n 1.5 Sichuan Xilin signs US$80m lumber deal with Canadian suppliererror! Bookmark not def 1.6 Canfor plans new wood manufacturing facility in ChinaError! Bookmark not defined. 1.7 U.S. Negates Injury by China Hardwood Plywood Error! Bookmark not defined. 1.8 China Softwood Log Inventories at Ocean PortsError! Bookmark not defined. 2 Special Report: China to further open up its economyerror! Bookmark not defined. 3 China Export & Import Statistics Error! Bookmark not defined. 3.1 China ExportsError! Bookmark not defined. 3.2 China ImportsError! Bookmark not defined. 3.3 China Export & Import Tables (all units are x000 m3)error! Bookmark not defined. 3.4 North America Log & Lumber Exports to China Error! Bookmark not defined. 4 China PricesError! Bookmark not defined. Announcing: 4.1 Log PricesError! Bookmark not defined. 4.2 Hardwood Lumber PricesError! Bookmark not d China/Global 4.3 Softwood Wood Lumber Products PricesError! Conference Bookmark not de - Sept , Day Northern China Industry Tour - Sept , Day Russia Far East Industry Tour - Sept , 2014

20 NOVEMBER 2013 Special Report: Special Report: China log and lumber import overview in first three quarters of 2013 More than 33.3 million m³ of logs that were valued at US$6.8 billion were imported into China during the first three quarters of 2013; an increase of 16% in volume and 23% in value compared with the same period in Of the total log imports, softwood imports were valued at about US$3.7 billion on a volume of 24 million m³ (an average value of US$154/m³), while hardwoods were 9.3 million m³ by volume and were valued at nearly US$3.1 billion (an average value of US$333/m³). The import volume and value of softwood logs increased 21% and 32%, respectively, from the same period of 2012, whereas hardwood log imports were up 6% in volume and 11% in value. The top 10 log importers imported a total of 1.3 million m3 in volume at a value of million USD in August 2013 this represents 33% of the total import volume and 32% of the import value nationwide. The top 10 lumber companies imported a total of 1.4 million m3 in volume at a value of million USD this represents 63.6% of China s total lumber import volume and 19% of the total lumber import value nationwide. MORE on page 5 China Market Synopsis The overall market trend continues to be stable, with only some minor adjustments both up and down in various products. Log inventories remain in good shape as prices inch higher. Softwood lumber is more volatile with prices moving up through early November. The outlook is steady to generally improving for almost all products. 1 China Industry News in Brief Dalian Zhuanghe Port Timber with a specialized dock/fumigation has started construction Log imports in Changshu Port reached 2 million m3 up to October 2013 (+18%) Shanghai Port timber imports reached 922,000 m3 in September 2013 (+32%) The Initiation of Fiberboard & Plywood Futures Contracts approved China Softwood Log Inventories at Ocean Ports 3 2 Special Report: China log and lumber import overview in first three quarters of China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) 15 4 China Prices Log Prices Hardwood Lumber Prices Softwood Lumber Prices China Conference Proceedings Available by CD US$295

21 OCTOBER 2013 Special Report: Guangzhou China Conference Summary: Huge Upside Expected for China s Wood Products Over 200 delegates attended the 3rd China/Global Timber & Wood Products Conference in Guangzhou, China, to discuss key issues, trends and forecasts for China s log and lumber trade. Over 75 international delegates participated in the conference presentations and/or attended the conference and networking sessions to gain an insight into the current state of the Chinese log and lumber import supply/demand situation and better understand the driving forces that will continue to provide opportunities for foreign suppliers in China. Chinese speakers provided an excellent overview of China s current wood products consumption, imports and exports trends, plus a current outlook for China s growing wood industry and an overview of new challenges for Chinese management ahead. This article summarizes the highlights of three key Chinese speaker presentations from the conference. MORE on page 5 1 China Industry News in Brief US Announced Final Results on Antidumping & Anti-subsidy Investigation Against Plywood Imported from China Jiangsu Changshu Port Log and Lumber Imports in H Jiangsu Lumber Imports Overview in 2012 and 2013 H China Softwood Log Inventories at Ocean Ports 3 2 Special Report: Guangzhou China Conference Summary: Huge Upside Expected for China s Wood Products 5 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) 19 4 China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 32 China Market Synopsis The overall market trend is stable. Log inventories are in very good shape as prices inch higher. Softwood lumber is more difficult to peg as prices have been moving both higher and lower as inventories appear to be mixed, depending on the port. The outlook is steady to generally improving, but the impact of the U.S. market dynamics could change this in either direction. Now Available! Click HERE brochure, pricing and order form

22 SEPTEMBER 2013 Special Report: Will the Busy Season be Busy? China s economy and construction sector remain among the fastest-growing in the world. However, as the country s economy cools from its previously redhot levels, unease has reemerged over housing prices and housing construction. Recently-released data from the China Real Estate Index System indicate that China s new home prices surged an average of 8.6% in August 2013 in 100 cities, as compared with the same period a year earlier. Housing prices began rising in December 2012, after China s local governments, in a bid to stimulate economic development, started to gradually loosen the restrictive policies on housing markets that were in effect in In August 2013, home values in the southern business hub of Guangzhou soared 24.2% from the same month in 2012, while in Beijing they jumped 22.5%, and in Shanghai prices increased by 7.7%. Demand from first-home buyers is still strong in the Chinese housing markets. At the same time, the policies that were restrictive now appear to be unravelling and it seems to be less likely for the central government to issue another nationwide policy, in the short term, to cool off the housing market, especially as the overall economy appears more fragile. MORE on page 4 1 China Industry News in Brief Log imports at Taicang Port (Jiangsu province) up 26% in first 7 months of Log imports at Lianyungang Port up 72% in first half of MDF lines put into production in 2012 in China Domestic market sales growth quicker than export sales in Guangdong China Softwood Log inventories at Ocean Ports 3 2 Special Report: Will the Busy Season be Busy? 4 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) North America Log & Lumber Exports to China 18 4 China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 30 Now Available! China Market Synopsis Log markets continue to remain stable with inventories increasing slightly, but still in balance. Softwood lumber prices are starting to move this is in line with market trends in the U.S. market. The question addressed in this issue is whether or not housing construction demand will spur on wood products buying in the fourth quarter! Click HERE brochure, pricing and order form

23 AUGUST 2013 Special Report: China Timber Imports: Overview for the First Half of 2013 According to the official data released by China National Bureau of Statistics (NBS), China's GDP grew 7.6% in the first half year of 2013 to 24.8 trillion RMB (US$4 trillion), as compared to the same period in The growth rate was 0.2% lower than in the same period last year. The GDP growth rate of 7.7% in the first quarter and 7.5% in the second quarter marked the fifth consecutive quarter at growth rates between 7.4% and 7.9%. Chinese export and import values reached almost US$2 trillion in first half of this year, an increase of 8.6% over the same period last year. Export values were US$1,053 billion, up 10.4%, and import values amounted to US$945 billion, up 6.7%. The trade surplus reached US$108 billion in the first half of 2013, up 58.5% compared with the same period last year. After a relative slowdown in timber imports in 2012, China log and lumber imports have seen increases in both volume and value during first half year of In the meantime, plywood, fiberboard and particleboard imports continued their trends of declining volumes as was evident again in the first half of MORE on page 4 China Market Synopsis Log markets continue to remain stable with inventories well balanced. Softwood lumber prices moved higher for the first time since the correction that started in April. Imported log and lumber volumes continue to move higher for the first six months of 2013, they were +16% and +14%, respectively as compared to the same period in China Industry News in Brief Log imports at Putian Port (Fujian Province) up 22% in first half of Manzhouli (China/Russia border): log imports down 17% in the first half of China Home Centre Stores closing China Softwood Log Inventories at Ocean Ports 2 2 Special Report: China Timber Imports: Overview for the First Half of China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) 17 4 China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 30 Scheduled Release: September Click HERE for brochure, pricing and order form Subscription price increases Sep to C$425

24 JULY 2013 Special Report: Overview on China-EU Wood Products Trade China is the largest wood products exporter in the world and collectively, the EU countries are the second largest partner for China wood products exports. The full article provides a summary/overview on the following wood products trade between China and EU: 1) Flooring: China increases share of EU wood flooring imports 2) Doors: China is the largest single supplier for EU wooden door imports 3) 3) Glulam: EU glulam imports from China down 14% in ) Wood Window: EU wooden window imports from China fall to negligible levels 5) Plywood: China contributed 33% of EU plywood imports in MORE on page 4 1 China Industry News in Brief AHEC Organized Annual Conference in Harbin Heilongjiang Province Fujian Furniture Exports Reach 1.3 billion USD, up 22% China Forest Group Completed the Acquisition of New Zealand Forestland Significantly Lower Plywood Imports from China in March China Softwood Log Inventories at Ocean Ports 3 2 Special Report: Overview on China-EU Wood Products Trade 4 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) 16 4 China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 29 China Market Synopsis Log markets remain relatively stable with inventories balanced. Softwood lumber prices that soared, have now crashed from unsustainable levels as has happened in the U.S. market. Very low lumber prices have Chinese buyers on the move and that should be good news for exporters over the next few months. 4-Day Southern China Industry Tour Proposed Tour Itinerary Sept 11 Meet in Fuzhou - PM Sept 12 Putian Sept 13 Zhangzhou & Xiamen Sept 14 Nanning Sept 15 Nanning (to Guangzhou) Sept 16 Conference in Guangzhou Sept 17 1-Day Tour around Guangzhou For details visit:

25 JUNE 2013 Special Report: China Wood Industry Development Summary in 2012 According to statistics from the State Forestry Administration, the total output value of China s forest industry was 3.95 trillion RMB in 2012 (625 billion USD). This represents an increase of 29% compared to levels in The annual growth rate in the output from China s forest industry has averaged 23% since In 2012, seven provinces spearheaded the establishment of additional timber strategic reserve base demonstration forests. China s central government has arranged 228 million RMB (36 million USD) to complete 1.4 million mu (930,000 hectares) of forest for the national timber strategic reserve base demonstration log output was million m3, being basically the same as in The lumber production in 2012 was million m3, up by 25% over that in 2011, while the output of woodchips was million m3, up 30% year on year MORE on pages 4-6 China Market Synopsis In 2012, furniture production, the construction sector and decoration industries were all affected by the forced slowdown of domestic real estate industry and weaker export demand. 1. China Industry News in Brief Fujian will develop 1.2 million hectares for the National Timber Strategic Reserve Base Guangxi Timber production reached 1.4 million m3 in Q Zhangjiagang Timber Import volume drops 11% in first five months Guangdong wood furniture export China s housing market rebounding quickly 3 2. Special Report: China Wood Industry Development Summary in China Export & Import Statistic China Exports China Imports China Export & Import Tables North America Log & Lumber Exports to China China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 30 China Timber & Wood Trade Conference & Optional Industry Tours Sept , 2013 View Details HERE

26 MAY 2013 Special Report: China Log and Lumber Trade Overview 2013/Q1 According to the trade data from China Customs, China imported 9.6 million m3 of logs during the first quarter of 2013, an increase of 6% from the same period last year. In the meantime, China s lumber imports were 4.7 million m3, an increase of 3% over the same period last year. Of the total log imports, 6.5 million m³ were softwood logs valued at USD 953 million during the first quarter of 2013, and this represented a 6% rise in volume and 7% inflated value over the same period in Even though Russia still dominated China s softwood log imports in the first quarter of 2013, Russian softwood log import volume decreased by 22% from the same period of 2012, while New Zealand radiate pine log import volume increased by 40%, compared with the first quarter of 2012 to reach 2.17 million m3; close to China softwood import volumes from Russia. Meanwhile, log imports from Ukraine increased dramatically by 392% in the first quarter of 2013, to 182,000 m3.. MORE on page 4 1 China Industry News in BriefError! Boo 1.1 1,700+ Hectare Poplar Plantation in Linyi Passed FSC CertificationError! Bookma 1.2 Caofeidian Wenfeng Timber Port to be Completed May 2013Error! Bookmark not de 1.3 China is the Largest Export Market for New ZealandError! Bookmark not defined. 1.4 Shandong Port Log Imports up 11% Q Error! Bookmark not defined. 1.5 US Released 22.14% of Preliminary Anti-Dumping Duty on Chinese Hardwood PlywoodError! Bookmark not defi 2 Special Report: China Log and Lumber Trade Overview 2013/Q1Error! Boo 3 China Export & Import StatisticsError! 3.1 China ExportsError! Bookmark not defined. 3.2 China ImportsError! Bookmark not defined. 3.3 China Export & Import Tables (all units are x000 m3)error! Bookmark not defined. 4 China PricesError! Bookmark not defined 4.1 Log PricesError! Bookmark not defined. 4.2 Panel PricesError! Bookmark not defined. 4.3 Hardwood Lumber PricesError! Bookmark no 4.4 Softwood Lumber PricesError! Bookmark not China Market Synopsis Log and Lumber exports to China continue to grow year-over-year. China s growth has kept the global wood trade thriving, adding new supplying countries to the top ranks, such as Ukraine, with an almost 400% increase of log exports to China in Q China Timber & Wood Trade Conference & Optional Industry Tours Sept , 2013 View Details HERE

27 APRIL 2013 Special Report: China Softwood Imports from Europe Russia, New Zealand and US/Canada were the three largest softwood logs suppliers to China during last several years. In 2012, these three regions represented 30%, 23% and 14%, respectively, of China s softwood log imports. Compared to these three areas, Europe plays a small role in supplying logs to China. The continuously rising prices of softwood logs in 2010 and in early 2011 in China provided new opportunities to ship red pine and spruce logs from selected countries in Europe by containers used for construction lumber and other applications. The main supplying countries of softwood logs to China from Europe include Ukraine, France, Romania, Lithuania, Germany and Belgium. China imported 421,000 m3 of softwood logs from Ukraine last year, including 380,000 m3 of red pine logs, and 41,000 m3 of white spruce logs. In the meantime, France supplied 177,000 m3 of white spruce logs, 11,000 m3 of red pine logs & other species to China in Total European log exports to China were over 1.2 million m3 in 2011 and 800,000 m3 in China Market Synopsis Increasing softwood log prices and export margins have enabled some European countries to increase log exports to China. Several of these countries have seen recent imports increase by as much as 500%. China s ever increasing hunger for wood has opened more global doors while others, such as Russia, begin closing. 1 China Industry News in Brief Zhangzhou Port: Log Imports up 98% in Q Changshu Port: Log Imports up 193% in Q German Oak Log Exports to China Drop 61% in South Korea Preliminary Anti-dumping Judgment on Chinese Plywood China Fiberboard Production Capacity Reached 45.2 million m3 3 2 Special Report: China Softwood Imports from Europe 4 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) 15 4 China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 27 2-Day China Market & Industry Conference/Tour: Sept 16-17, 2013 Guangzhou, Guangdong Province, (Southern China) More Details to Come

28 March 2013 Special Report: China Wood Products Exports Overview of 2012 According to recent statistics released from China Customs, China s forest products trade value was billion USD in Of the total China s forest products trade, exports accounted for 57.6 billion USD, an increase of 5% compared with 2011, while imports accounted for 61.3 billion USD, a decrease of 6% compared with The forest products trade deficit was 3.7 billion USD in 2012, a decrease of 65% over Furniture, paper products, plywood, fiberboard and selected wood products are still playing the most important roles in China s forest products exports. However the slower growth of China s furniture and wood products exports has caused a slower growth rate of China s entire forest products export value in Meanwhile, with the quickly rising cost of labor and raw materials in China, the growth rate in the export value in most wood products have been recording higher changes as compared export volumes in China Industry News in Brief Suifenhe port: lumber imports up 48% in January Taicang port: log imports increase by 18% in Guangdong Weihua Group loss 17 million USD in USA releases preliminary countervailing duty on Chinese hardwood plywood 3 2 Special Report -- China Wood Products Exports: Overview of China Export & Import Statistics China Exports China Imports China Export & Import Tables 14 4 China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 30 China Market Synopsis In 2012, China s forest products exports accounted for 57.6 billion USD, an increase of 5% compared with 2011, while imports accounted for 61.3 billion USD, a decrease of 6% compared with However, rising costs of labor and raw materials in China and weaker export markets are obstacles for China s wood products industry in 2013.

29 February 2013 Special Report: According to the initial statistics from State Forestry Administration, China s forest products import and export trade value reached 120 billion USD in 2012, up 3% from China s domestic log production is expected to reach 81 million m3 in 2012, and wood-based panel production totaled 207 million m3 in In 2012, 37.9 million m³ of logs valued at about USD 7.3 billion were imported into China, a decrease of 11% by volume and 12% by value from the year of Of the total log imports, softwood log imports were valued at USD 3.7 billion with a volume of 26.7 million m3, while the hardwoods were 11.2 million m3 in volume and were valued at nearly 3.6 billion USD. The import of softwood logs decreased nearly 15% in volume and 24% in value compared with 2011, whereas the import volume and value of hardwood logs grew by 3% and 6%, respectively, compared with continued on page 4 1 China Industry News in Brief 1.1 China Log and Lumber Imports: Update in Main Ports 1.2 Fujian and Guangxi Release Timber Production Plan for China s Flooring Production Volume in China s GDP rises in Q4/ Special Report -- China Timber & Wood Products Imports: Overview of China Export & Import Statistics 3.1 China Exports 3.2 China Imports 3.3 China Export & Import Tables 4 China Prices 4.1 Log Prices 4.2 Panel Prices 4.3 Hardwood Lumber Prices 4.4 Softwood Lumber Prices China Market Synopsis China s demand for logs and lumber was fueled a mini-recovery in the second half of Their log and lumber imports posted gains in the second half of 2012, despite negative year-over-year growth.

30 January 2013 Special Report: China Housing Market Update Following a slowdown starting in the fourth quarter of 2011 and for much of 2012, the Chinese property market has shown signs of warming in recent months. Much of this increase has been attributed to the Chinese central bank twice cutting interest rates, as well as the bank s required reserve ratio earlier this year in an effort to buoy the economy. China's home prices recorded their first yearon-year increase in nine months in December Figures show the price of both new homes and pre-owned homes in the 10 key cities increased at a quicker pace than the national average, indicating the market rebound was mainly recorded in major cities. According to the Academy, the trend is expected to continue this year, with cities that have a limited supply facing more pressure from price hikes. continued on page 4 1 China Industry News in Brief China Forestry Group Corporation plans to invest 92 million USD in Suifenhe China Forest Industry Output reached 586 Billion USD in Log Imports in Lanshan Port up 12% in Orient Home closed all five stores in Beijing Guangdong Furniture Industry Output reached 48 billion USD in Special Report -- China Housing Market Update 4 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables 13 4 China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 25 China Market Synopsis The Chinese housing market is once again heating up. China's home prices have gradually risen over the second half of 2013, particularly in the largest cities. However, continued property purchase controls and a rising inventory of newlycompleted government-subsidized affordable housing units are expected to dampen the upward pressure on prices.

31 December 2012 Special Report: China Softwood Trade Entering a New Stage At the opening of 18 th National Congress of the Communist Party of China (NCCPC) in early November, President Hu Jintao said China will double its GDP and per-capita income for both urban and rural resident by 2020 from the levels of This is the first time the Chinese government has clearly put forward this target. China s gross domestic product is expected to reach 100 trillion RMB in 2020, equivalent to USD 16 to 20 trillion, according to economists. To achieve the government s aggressive target of doubling per-capita income by 2020, it will mean that the per-capita disposable income of urban residents will need to rise by an average of 7% every year and the per-capita net income of rural residents will need to increase by an average of 6.7% annually over the next 9 years. According to NBS numbers, China s per-capita net income was 19,109 RMB (2,550 USD) for urban residents and 5,919RMB (790 USD) for rural residents in As the country s central and western regions have huge potential for economic development, residents there will see their incomes rise faster than those in eastern parts over the next few years. With this target, China s purchasing power will be greatly improved by 2020 and China will be the largest consumption market in the world... continued on page 4 China Market Synopsis China s demand on timber and wood products will certainly keep growing in next 10 years and also will provide more opportunities for international timber suppliers. With the experiences and lessons learned from last several years, and with more mature and experienced Chinese importers, China softwood imports is entering a new stage! 1 China Industry News in Brief Forest Products Supply & Demand Overview in Log Imports in Taicang Reached 4 million m3 in First 10 Months this Year China is expected to be largest furniture importer from Indonesia in Lumber Imports in Sichuan increased quickly in China Softwood Trade Entering a New Stage 4 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) Quarterly China Imports: US & Canada Logs and Lumber: 17 4 China Prices 21 USD/m3 $250 $225 $200 $175 $150 $125 $ Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 29 Softwood C&F (Bars) Annual China: Imported Log & Lumber Price Indicies Monthly Hardwood Wholesale Market (Lines) 1,700 1,500 1,300 1,100 $ J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O N * Softwood Lumber Softwood Logs Hardwood Lumber Hardwood Logs Source: CC; Note: * = YTD

32 November 2012 Special Report: China Economic Statistics in Q and Plywood Industry Update According to statistics released by the National Bureau of Statistics of China, China's GDP growth rate continued to slow to 7.4% in the third quarter of 2012, down from the 7.6% year-on-year rate in the second quarter. Weakened global demand was the main force dragging down expansion. The total investment in China s real estate development in the first nine months of 2012 was USD 800 billion, a year-over-year increase of 15.4% from the same period in 2011, but a 1.2% lower growth rate than in first half of Chinese plywood exports have increased quickly over the last ten years. The volume of Chinese plywood exports has risen from 960,000 m3 in 2001 to 9.6 million m3 in 2011; a tenfold increase over the decade. Similar to other industries, China s plywood industry has faced increasing raw material and labour costs over the last several years. continued on page 4 1 China Industry News in Brief Manzhouli Triple Success Starts Second Phase Expansion China Radiata Pine Log Imports Reached 1 million m3 in Sep Zhangzhou Port Log Imports Reached 1.6 million m3 in First 10 Months this Year Anhui Mingguang Taoyuan Plywood Company Starts Production 3 2 China Economic & Plywood Industry Update (Q3 2012) China Economic Statistics in the First Three Quarters of China Plywood Industry Updates 6 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables (all units are x000 m3) 15 4 China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 27 China Market Synopsis Softwood C&F (Bars) $250 Annual China: Imported Log & Lumber Price Indicies Monthly Hardwood Wholesale Market (Lines) 1,700 As reported in this month s Special Report, China s economy is slower than the first half of 2012, but still thriving in comparison to most of the rest of the world. USD/m3 $225 $200 $175 $150 $125 1,500 1,300 1, Softwood Lumber Softwood Logs Hardwood Lumber Hardwood Logs $ $ J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S O * Source: CC; Note: * = YTD

33 October 2012 Special Report: China & Russia Timber Trade Update Russia has been the most important supplier of China log imports over the last decade. China imported a total of 5.9 million m3 of logs from Russia in 2000 and reached an historical high of 25.4 million m3 in 2007, representing 68% of China s total log import volume in that year. During the last several years, due in part to increasing log export tax rates for Russian logs, as well as a collapse in the Russian logging sector due to the log export tax, China s log imports from Russia have plunged. However, Russia still remains the largest log supplier to China at 14.1 million m3 in Of total log imports from Russia, softwood logs represent the bulk of the volume, or 93% of Russia s total log export volumes to China in The main species includes red pine, white spruce and larch. Red pine logs represent 49% of total Russian log volumes imported into China. continued on page 4 1 China Industry News in Brief 1.1 Heilong Naili Wood Group starts Jia- Yi-Mei Home Center 1.2 Lanshan Port imported 2.6 million m3 during first 8 months this year 1.3 The U.S. submits anti-dumping and anti-subsidy investigation on hardwood plywood from China 1.4 Guangxi wood-based panel production capacity to reach 15 million m3 by Home Depot announces the closure of all of its home centre stores in China 2 Special Report: China & Russia Timber Trade Update 3 China Export & Import Statistics 3.1 China Exports 3.2 China Imports 3.3 China Export & Import Tables 4 China Prices 4.1 Log Prices 4.2 Panel Prices 4.3 Hardwood Lumber Prices 4.4 Softwood Lumber Prices China Market Synopsis Softwood C&F (Bars) $250 $225 Annual China: Imported Log & Lumber Price Indicies Monthly Hardwood Wholesale Market (Lines) 1,700 1,500 As reported in this month s Special Report, Russia continues to be China s largest log supplier, even with current Russian log export tax rates. The new export tax rates and quota volumes may be slightly positive for increased Russian log exports to China in USD/m3 $200 $175 $150 $125 $100 $75 J F M A M J J A S O N D J F M A M J J A S O N D J F M A M J J A S * ,300 1, Softwood Lumber Softwood Logs Hardwood Lumber Hardwood Logs Source: CC; Note: * = YTD

34 October 2012 International WOOD MARKETS Group Inc. Page 2

35 September 2012 Special Report: China In-the Field Market Assessment A week of travel in China has provided some interesting perspectives on some of the dynamics on the construction/housing market and log/lumber trade along China s central east coast region, not to mention the overall economic conditions. As is normal in China, there is no simple story that can explain what is going in the total market or the economy. And while statistics can profile some of the short term trends, the underlying evidence in China in the short to medium term suggests that things will get a bit slower before it moves back on to a longer term growth trend. continued on page 3 New Look for the You will see some changes in the look of this month s. WOOD MARKETS started off in 2007 as short report addressing key trends in the expanding and uncertain China market. The report has continually evolved, partly in response to subscriber comments and suggestions, to where it is now a page monthly report. We thank our subscribers for their support. With this issue, you will see a new format to the look of the report as well as to many of our statistical import/export and price graphs. We have also made a few deletions as well as additions to various products and prices to provide more relevant and accurate information. 1 China Industry News in Brief Imported logs reached 2.3 million m3 in Lanshan port during the first 7 months of this year Heilongjiang Forest industry timber sales declined 52% in last sales season Morocco made a final anti-dumping on Chinese plywood 2 2 China market update from in-thefield assessment 3 3 China Export & Import Statistics China Exports China Imports China Export & Import Tables Quarterly China Imports: US & Canada Logs and Lumber: 16 4 China Prices Log Prices Panel Prices Hardwood Lumber Prices Softwood Lumber Prices 28 China Market Synopsis As reported in this month s Special Report, China s offshore suppliers of softwood logs and lumber are seeing improved demand at modestly higher prices. Low inventories have created a short-term window. If you have any further comments or suggestions for the, please contact us at info@woodmarkets.com

36 August 2012 Log and lumber imports in main softwood importing ports during 2012 H1 Guangxi log and wood-based panel production in first half of 2012 China furniture industry and exports. MORE on page 2 Special Report: China Timber Imports: Half year Overview in 2012 China export and import values reached US$1.8 trillion in the first half of this year, an increase of 8% over the same period last year. Export values were US$954 billion, up 9%, and import values totaled US$885 billion, up 7%. Trade surplus reached US$68.9 billion in the first half of 2012, up 56% compared with the same period last year. Slowing domestic demands have made China timber and wood-based panel imports decrease quickly during the first half year of 2012.MORE on pages 3-8 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Announcing: The China Book Outlook to 2017 Scheduled for release September 2012 Comprehensive overview of China s expanding wood products industry and raw material supply and sources Analysis of Chinese housing market and wood products consumption trends Five-year outlook on China s wood products industry, exports and imports Log, lumber and panel prices, trends and forecast See our new brochure that has just been released at Annual Subscription C$400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): Cdn$400 (Cdn +GST/HST) Back issues (subscribers only): Cdn$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

37 July 2012 Zhangjiagang Log and Lumber Imports up 16.8% in first half of this year China agrees to restart importing logs from South Carolina and Virginia, U.S. Beijing New Building Material Group and Jilin Forest Industry invests in new OSB production line China Furniture production volume up 2.6% in first 5 months of this year. MORE on page 2-3 Special Report: China Wood Door Industry Overview From , China s wooden door production values increased an average of 25% in annual growth rate. In 2011, China s wooden door production reached 140 million pieces, priced at 12.6 billion USD in production value, representing an increase of 22% in value compared with China has nearly 10,000 wooden door production factories, with 3,000 of them with advanced equipment. Of all door production factories, 30 have more than 100 million RMB.MORE on pages 3-6. Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Announcing: The China Book Outlook to 2017 Scheduled for release September 2012 Comprehensive overview of China s expanding wood products industry and raw material supply and sources Analysis of Chinese housing market and wood products consumption trends Five-year outlook on China s wood products industry, exports and imports Log, lumber and panel prices, trends and forecast See our new brochure that has just been released at Annual Subscription C$400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): Cdn$400 (Cdn +GST/HST) Back issues (subscribers only): Cdn$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

38 Statistics of China wood industry production in 2011 China furniture production volume up 4.6% in first four months this year Beijing Qumei Furniture Group invested 200 million RMB in Suifenhe Guangxi starts the pilot construction of the National Timber Strategic Reserve Base. MORE on page 2-3 Special Report: China starts National Timber Strategic Reserve Production Base Plan China s log imports took about 30% of total global log exports, and tropical timber imports into China represented about 50% of total global exports. China s forest products import and export trade values ranked second overall the world. Due to the large demand from: its wood products industry and furniture export sector; increasing demand from domestic consumption consumption; and China s natural forest protection projects, China timber supply and demand gap is getting wider each year.. MORE on pages 3-4. June 2012 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Announcing: The China Book Outlook to 2017 Scheduled for release September 2012 Comprehensive overview of China s expanding wood products industry and raw material supply and sources Analysis of Chinese housing market and wood products consumption trends Five-year outlook on China s wood products industry, exports and imports Log, lumber and panel prices, trends and forecast See our new brochure that has just been released at Annual Subscription (12 Issues) = Cdn $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): Cdn$400 (Cdn +GST/HST) Back issues (subscribers only): Cdn$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

39 Fujian Forest Products Trade Value up 43% in 2011 Manzhouli Log Imports up 11% in Jan 2012 China Flooring Production Volume in 2011 Changzhou Flooring Exports Value reached 589 million USD in 2011 China Furniture Industry Output Value China Wooden Door production value up 14% in 2011 MORE on page 2-3 Special Report: China Wood Products Exports: Overview of 2011 China s forest products trade value has reached billion USD in 2011, representing an increase of 24% compared with Of China s forest products total trade value, exports accounted for 54.2 billion USD, an increase of 11% compared with 2010, while imports accounted for 64.9 billion USD, an increase of 37% compared with The forest products trade deficit reached 10.7 billion USD in MORE on pages 3-5. May 2012 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Announcing: The China Book Outlook to 2017 Scheduled for release July 2012 Comprehensive overview of China s expanding wood products industry and raw material supply and sources Analysis of Chinese housing market and wood products consumption trends Five-year outlook on China s wood products industry, exports and imports Log, lumber and panel prices trends and forecast Further information regarding this report will be available in the coming months Annual Subscription (12 Issues) = US $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$400 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

40 April 2012 Real Estate Investment Trends The total investment in China s real estate development in the first two months of 2012 increased substantially from the same two-month period from 2011, but is this a trend? China's manufacturing purchasing managers index (PMI) was up in March on a month-over-month basis from February, but is this sustainable? Log/Lumber Market: Tour Highlights Chinese log market inventories move lower, but to what level? Very tight cash flow in the whole distribution channel, from log importers/distributors to sawmills to lumber distributors to end users, it s keeping the log wholesale market prices at abnormally low levels what does this mean? Chinese sawmill operating rates are below normal but at what level? Second and third tier housing markets are less affected as compared to larger cities, so how does this impact the housing market? A potential wildcard: a shadow inventory of logs and lumber is distorting real inventories, current prices and imports what does this mean going forward? Also observed: the world s largest sawmilling site is now under construction in China. These topics and others are highlighted in this month s. Additional coverage will resume in the next issue of the and also at our Global Softwood Log & Lumber Conference on May 9 in Vancouver. Announcing: The China Book Outlook to 2017 Scheduled for release July 2012 Comprehensive overview of China s expanding wood products industry and raw material supply and sources Analysis of Chinese housing market and wood products consumption trends Five-year outlook on China s wood products industry, exports and imports Log, lumber and panel prices trends and forecast Further information regarding this report will be available in the coming months Annual Subscription (12 Issues) = US $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$400 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

41 Fujian Forest Products Trade Value up 43% in 2011 Manzhouli Log Imports up 11% in Jan 2012 China Flooring Production Volume in 2011 Changzhou Flooring Exports Value reached 589 million USD in 2011 China Furniture Industry Output Value China Wooden Door production value up 14% in 2011 MORE on page 2-3 Special Report: China Wood Products Exports: Overview of 2011 China s forest products trade value has reached billion USD in 2011, representing an increase of 24% compared with Of China s forest products total trade value, exports accounted for 54.2 billion USD, an increase of 11% compared with 2010, while imports accounted for 64.9 billion USD, an increase of 37% compared with The forest products trade deficit reached 10.7 billion USD in MORE on pages 3-5. March 2012 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Announcing: The China Book Outlook to 2017 Scheduled for release July 2012 Comprehensive overview of China s expanding wood products industry and raw material supply and sources Analysis of Chinese housing market and wood products consumption trends Five-year outlook on China s wood products industry, exports and imports Log, lumber and panel prices trends and forecast Further information regarding this report will be available in the coming months Annual Subscription (12 Issues) = US $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$400 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

42 February 2012 China Log and Lumber Imports update in main ports Guangxi Log Production up 15% in 2011 MORE on page 2 Special Report: China Timber Imports: Overview of 2011 According to the initial statistics from State Forestry Administration, China s forest products import and export trade value reached 116 billion USD in 2011, up 24% from China s wood-based panel production totaled 165 million m3 in 2011, up 8% compared with In 2011, 42.3 million m³ of logs valued at about USD 8.3 billion were imported into China, an increase of 23% by volume and 36% by value from the year of MORE on pages 3-8 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Announcing: The China Book Outlook to 2017 scheduled for release July 2012 comprehensive overview of China s expanding wood products industry and raw material supply and sources five-year outlook on China s wood products industry, exports and imports log, lumber and panel prices trends and softwood forecast further information regarding this report will be available in the coming months Annual Subscription (12 Issues) = US $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$400 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

43 January 2012 China Wood-Based Panel Production reached 165 million m3 in 2011 Russian Lumber imports in Suifenhe over 1 million m3 during first 11 months in 2011 Log throughput in Tianjin port up 106% in 2011 Sichuan Province Furniture Industry 12 th Five-Year plan Released China furniture export value reached 33.8 billion USD during first 11 months of 2011 MORE on pages 2-3 Special Report: China Housing Markets Updates Part II Nearly two years after the Chinese government launched its "strictest controls", property prices finally cooled down in China. In November 2011, 49 cities out of a statistical pool of 70 major cities saw drops in new home prices from October, compared with 34 cities in October, the National Bureau of Statistics (NBS) said recently. New home prices in 16 cities stayed flat in November from October and the growth rate of home prices in another five cities were all below 0.2%. MORE on pages 3-5 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices ANNOUNCING: Global Softwood Log & Lumber Conference May 9, 2012 Hyatt Regency Hotel Vancouver, BC In conjunction with: PwC s 25 th Annual Global Forest & Paper Industry Conference: May 10, 2012 The Pulp and Paper Producers council Annual Meeting: May 6-9, 2012 The Global Forest Products Leadership Summit 2012: May 6-9, 2012 Further details to come at: Annual Subscription (12 Issues) = US $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$400 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

44 December 2011 Gaofeng Forestry Group receives FSC-FM certification Log Imports in Lanshan reached 3 million m3 during first 10 months this year Russian Log and Lumber Import updates at land ports with China Log and Lumber Imports in Jiangsu province increased quickly China Forestry and wood products production statistics in 2010 Plywood Exports in Shandong increased quickly in 2011 MORE on pages 2-3 Special Report: China Housing Market Update & Outlook According to the recent statistics released by China National Statistics Bureau (NSB), during first ten months of 2011, China investment in real estate rose 31% to reach 4,992 billion RMB (768 billion USD), and new housing starts rose 22% to 1.6 billion m2, compared to the same period in last year. After two years of regulations aimed at trying to cool the property market, some cities in China finally seem to be experiencing a slowdown. MORE on pages 4-7 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices ANNOUNCING: Global Softwood Log & Lumber Conference May 9, 2012 Hyatt Regency Hotel Vancouver, BC In conjunction with: PwC s 25 th Annual Global Forest & Paper Industry Conference: May 10, 2012 The Pulp and Paper Producers council Annual Meeting: May 6-9, 2012 The Global Forest Products Leadership Summit 2012: May 6-9, 2012 Further details to come at: Annual Subscription (12 Issues) = US $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$400 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

45 November 2011 China is the fifth largest export market for Malaysia Timber Products Jiangsu Changshu Port: log imports exceeded 1.5 million m3 during first 9 months this year China Furniture Exports Down 20% in Canton Fair Wood flooring cluster in Changzhou City set to expand Timber imports through Huzhou Port, Zhejiang Province forecast to double this year Pace of furniture export growth slows in Qingdao New Zealand accounts for 97% of log imports through Zhangzhou Port MORE on pages 2-3 Special Report: China OSB Industry Overview: Current Situation and New Developments Even though OSB (Oriented Strand Board) is widely produced and used in North America and Europe, the production and application of OSB in China is still at an early stage. Waferboard (the precursor to OSB) production lines were initially established in China in the middle of 1970s, and it is estimated that there are eight OSB lines in China by the end of 2010 with total annual capacity of 309,000 m3. MORE on pages 4-6 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices ANNOUNCING: Global Softwood Log & Lumber Conference May 9, 2012 Hyatt Regency Hotel Vancouver, BC In conjunction with: PwC s 25 th Annual Global Forest & Paper Industry Conference: May 10, 2012 The Pulp and Paper Producers council Annual Meeting: May 6-9, 2012 The Global Forest Products Leadership Summit 2012: May 6-9, 2012 Further details to come at: Annual Subscription (12 Issues) = US $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$400 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

46 October 2011 Guangxi develops plans for strategic timber reserve Heilongjiang will reduce log production volume dramatically in next 3 years China forestry industry production value reached US$255 billion - first 8 months 2011 Gabon lumber imported into Zhangjiagang Port via ship for the first time China furniture retail value up 30.6% in first 8 months this year MORE on pages 2-3 Special Report: China Imported Softwood Applications & Markets Demands During the last several years, China s softwood log and lumber imports have increased dramatically and the supplying countries have had big changes and huge growth compared with the years before 2007 (and the implementation of the Russian log export tax schedule). Currently Russia is still the largest softwood log supplier to China, but the supply volume has decreased from 21 million m3 in 2007 to only 13 million m3 in MORE on pages 3-7 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Annual Subscription (12 Issues) = Cdn $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): C$400 (Cdn +GST/HST) Back issues (subscribers only): C$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

47 September 2011 China forestry production value expected to reach 400 billion USD this year Power Decor's new production factory starts construction in Fuyang Anhui Northeast China and Inner Mongolia Forest Industry Groups Annual Conference held in Jilin Zhangzhou port radiata pine log imports up 61% in first 7 months of this year Log imports in Rizhao Lanshan port reached 2 million m3 in first 7 months of this year MORE on pages 2-3 Special Report: China Forest Products Export: Half-year Overview in 2011 Driven by the increasing production volumes and market demand, China wood products and furniture exports increased quickly during the first half of this year. The market demand from export markets in the USA and Europe decreased in May and June and created some negative export growth in recent months. Never-the-less, China wood products and furniture exports still had a good growth rate in first half of A total of 4.6 million m³ of plywood valued at USD 2 billion was exported during the first half of MORE on pages 3-5 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Join International & Chinese Delegates for China s Outlook! China SOFTWOOD Log & Lumber Import International Conference 2011: Tianjin, China (near Beijing) September 15 (conference) & September 16 (one-day Tianjin tour) Optional 3-day Tour: Chinese log and lumber ports, various mills, etc. September SOLD OUT Wait List Available as spots open up Visit our website for further details: Annual Subscription (12 Issues) = Cdn $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$400 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

48 August 2011 Fujian Log Imports Volume up 73% in the first half 2011 Taicang Log and Lumber Imports reached 1.8 million m3 in first half of 2011 Russian Log Import Volumes in Manzhouli up 15% in first half of 2011 Guangxi Log Production up 20% in the first half year of 2011 China MDF Production Capacity to reach 41 million m3 by the end of 2011 New Timber Exchange Platform established in Guangzhou City MORE on pages 2-3 Special Report: China Timber Imports: 2011 Half Year Overview China's GDP grew 9.6% in the first half year of 2011 to 20.4 trillion RMB (US$3.1 trillion) as compared to the same period in The growth rate was 1.5% lower than in the same period last year as the country is trying to slowdown its economic growth to prevent the economy from overheating and inflation fears. China s export and import value in total has reached US$1.7 trillion in first half of 2011, an increase of 26%... MORE on pages 4-9 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Join International & Chinese Delegates for China s Outlook! China SOFTWOOD Log & Lumber Import International Conference 2011: Tianjin, China (near Beijing) September 15 (conference) & September 16 (one-day Tianjin tour) Optional 3-day Tour: Chinese log and lumber ports, various mills, etc. September SOLD OUT Wait List Available as spots open up Visit our website for further details: Annual Subscription (12 Issues) = US $400. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$400 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: Barb MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

49 July 2011 Shanghai Lumber Import Increased dramatically in the month of May Asia s Largest Flooring Industry Park starts production in Changchun Guangdong Yihua Wood Expands in the Domestic market China Floor successfully listed on Hong Kong Stock Exchange MORE on pages 2-3 Special Report: Countervailing/Antidumping Duties Imposed on Chinese Wood Flooring Industry On June 27 th, the U.S Department of Commerce (DOC) announced further changes to the preliminary anti-dumping tax rate on Chinese flooring products. The initial preliminary antidumping duties were made by the DOC on May 20 th. Two of the investigation's "mandatory respondents" the largest manufacturers by volume that sell engineered wood flooring to U.S. importers will not have any additional antidumping duties imposed on their goods.. MORE on pages 3-4 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices Early Bird Prices End on July 15! China SOFTWOOD Log & Lumber Import International Conference 2011: Tianjin, China (near Beijing) September 15 (conference) & September 16 (one-day Tianjin tour) Optional 3-day Tour: Chinese log and lumber ports, various mills, etc. September Visit our website for further details: Annual Subscription (12 Issues) = US $350. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): E- mail (PDF): US$350 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: B. MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

50 June 2011 China log and lumber import updates for main ports during the first 4 months this year China forest products traded 31% in value during first quarter this year Linyi plywood manufacturers plan to establish wholesale building materials market in USA Pizhou plywood exports up more than 20% during the first 4 months this year China top ten flooring brands in 2010 MORE on page 2-4 Special Report: China: SPF lumber imports Overview According to China Customs statistics, total imports reached 9.4 million m3 in softwood lumber for 2010, representing an increase of 47.8% compared with In the first four months of this year, China imported a total of million m3 softwood lumber, up 74% from the same period last year. China s softwood lumber imports accounted for 68% of the total lumber import volume in the first four months of this year, increasing 64% in 2010, and only 15.8% from MORE on page 5-8 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Softwood & Hardwood Lumber Prices in Timber/Wholesale Markets China: Imported Softwood & Hardwood Log Prices in Timber/Wholesale Markets China: Imported North American, NZ & Europe Softwood Lumber & Log Prices CIF China China: Selected Domestic Log Prices China: Domestic & Imported Plywood Prices China Domestic MDF & Particleboard Prices China SOFTWOOD Log & Lumber Import International Conference & Log Port / Industry Tours 2011: Focus on Logs & Lumber Tianjin, China (near Beijing) September 15 (conference) & September 16 (one-day Tianjin tour) Optional 3-day Tour: Chinese log and lumber ports, various mills, etc. September Visit our website for order form and further details: Subscribe for Annual US$350. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$350 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: B. MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5

51 May 2011 Log imports value in Zhangzhou port up 69% in 2010 Russia ILIM Group expands quickly in China market Greater Higgnan Mountains Forest Group Invested 35.5 million USD in restructing Hubei Baoyuan Wood is promoting OSB applications in wood frame houses Lanfang Plywood exports to Japan soared after Japan Earthquake MORE on page 2-3 Special Report: China Wood-Based Panel Industry: Overview in 2010 China s wood-based panel industry has been developed very quickly over the last 20 years. China now has more than 10,000 wood-based panel manufactures, with more than 130 million m3 in production capacity annually and 200 billion RMB (30 billion USD) in total production value. China already has the largest wood-based panel production, consumption and trade in the world.. MORE on page 3 Statistics (Graphs & Tables): China: Wood Products Exports China: Wood Products Imports Prices (Graphs & Tables): China: Imported Lumber Prices in Wholesale Markets China: Imported Log Prices China: Domestic Log Prices China: Domestic & Imported Plywood Prices Second Announcement: China SOFTWOOD Import/Export International Conference 2011: Focus on Logs & Lumber Tianjin, China (near Beijing) September 15 (conference) & September 16 (one-day Tianjin tour) Optional 3-day Tour: Chinese log and lumber ports, various mills, etc. September Visit our website for further details: Subscribe for Annual US$350. Click here for order form No part of this publication may be reproduced or transmitted in any form whatsoever (electronic, mechanical, photocopy, facsimile, etc.) without the express written permission of the publisher International WOOD MARKETS Group Inc. Subscription Rates (12 months): (PDF): US$350 (Cdn +GST/HST) Back issues (subscribers only): US$50 Publisher & Editor: Russell E Taylor Associate Editor& Research: J. Guo Subscriptions: B. MacDonald Phone: Fax: info@woodmarkets.com Mail: # E. Cordova Street. Vancouver, BC Canada V6A 0A5