MARCH Special Report: China Timber Wood Products Imports: Overview 2015 (Part II: Panels) 1. China Industry News in Brief 2

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1 MARCH 216 Special Report: China Timber Wood Products Imports: Overview 215 (Part II: Panels) China is one of largest wood-based panel producers in the world. However, the import volumes of Chinese wood-based panels are relatively small and are mostly used for high-end or specialized applications. In 215, China particleboard imports were up nearly 1% from 214, led by Malaysia, Romania, Thailand, Germany, and Vietnam. China imported 178,6 m3 of OSB panels in 215, up 27% by volume compared with 214. Canada was the largest supplier of structural OSB supplier to China however, its shipments decreased by 14%. Decorative OSB imports increased 54% by volume in 215, led by Romania and Germany. China imported 238, m3 of fiberboard (mainly MDF) in 215 almost the same as with 214. In 215, China plywood imports were 6% lower than in 214 there were some key reasons why this trend may continue in 216.,,, Full report available to subscribers only. China Market Synopsis Softwood log inventories at China s main ocean ports moved higher to 3.2 million m3 in February, a big increase from December, but not quite as high as most were expecting. Log and lumber prices generally recorded small gains the direction of prices will be tied less to demand in China and more to the volume of imported volumes that offshore suppliers ship. With global markets generally weak, expect rising inventories that could push prices lower! 1. China Industry News in Brief China flooring sales volume decrease 2.2% in Putian Port: log imports soar in the first 2 months of China s Softwood Log Inventories at Ocean Ports 2 2. Special Report: China Timber & Wood Products Imports: Overview of 215 (Part II - Panels) 4 3. China Export & Import Statistics China Exports China Imports China Export & Import Tables North America Log & Lumber Exports to China China Prices 22 USD/m3 - C&F 4.1 Log Prices Hardwood Lumber Prices Softwood Lumber Prices 27 Softwood C&F (Bars - Left Axis) China: Imported Log & Lumber Price Indicies $275 $2,1 $25 $1,9 $225 $2 $175 $15 $125 $1 $75 $1,7 $1,5 $1,3 $1,1 $9 $7 $5 $3 J F MAM J J A S O N D J F MAM J J A S O N D J F Hardwood Wholesale Market (Lines - Right Axis) US$/m3 - Wholesale Softwood Lumber Softwood Logs Hardwood Lumber Hardwood Logs Source: CC; Note: * = YTD

2 China Bulletin MARCH China Industry News in Brief 1.1 China flooring sales volume decrease 2.2% in 215 According to the statistics from China National Forest Products Industry Association, the total sales volume for flooring products in China was 38 million m3 in 215, a decrease of 2.2% from 214. The sales volume for different flooring categories included: Laminated flooring: 26 million m2 in 215, -3.2% from 214; Engineered flooring: 95.5 million m2 in 215, 1.% from 214; Solid wood flooring: 39.9 million m2 in 215, -1.% from 214; Bamboo flooring: 35.1 million m2 in 215, -.7% from 214; Other flooring: 3.7 million m2 in 215, -3.% from Putian Port: log imports soar in the first 2 months of 216 According to the statistics from Fujian Inspection and Quarantine Bureau, during first two months of 216, Putian port log import by break-bulk has reached 96, m3 by volume and 11 million USD by value, up 5 times by volume and 4.7 times by value, respectively, compared with the same period of last year. Also, the log import volume in containers at Putian port was 5,953 m3, up 1.8 times compared with the same period of last year. 1.3 China s Softwood Log Inventories at Ocean Ports According to data supplied by a key WOOD MARKETS contact in China, softwood log inventories at China s main ocean ports totaled 3.2 million m3 at the end of February, up 21% compared with two months ago (end of December). Radiata pine logs from New Zealand and Australia decreased by 31% in February to 1.6 million m3; representing 48% of the total log inventory. North American Douglas-fir & hemlock volumes totaled 1.2 million m3, up 12% from two months ago. Softwood log inventories from other countries, including Russia, Ukraine, Europe and others, were at 53, m3, up 13% from December. International WOOD MARKETS Group Inc. Page 2

3 China Bulletin MARCH 216 Note: WOOD MARKETS is using the graph format above from our new information source for softwood log inventory. Our previous inventory summary did not include sources beyond New Zealand and Australia (radiata pine), USA and Canada (mainly hemlock and Douglas fir) and Russia. The new source includes volume from Other countries, including the Ukraine, Europe, South America and other suppliers. The above graph prior to March 215 shows inventory of Russian only softwood logs, while the new source starting in April 215 groups inventory of Russia with all other countries in the same bar. The log inventories at the end of February compared to the end of December at some of major ocean ports (excluding Russian land ports) were reported as follows: Feb Dec Lanshan: 628, m3 vs 551,5 m3 Lianyungang and Ganyu: 23, m3 vs 223, m3 Taicang & Wanfang & Meijing: 95, m3 vs 861, m3 Changshu: 387, m3 vs 171, m3 Tianjin: 168, m3 vs 146, m3 Qingdao: 165, m3 vs 151, m3 Subtotal: 2,51, m3 vs 2,13,5 m3 International WOOD MARKETS Group Inc. Page 3

4 China Bulletin MARCH Special Report: China Timber & Wood Products Imports: Overview of 215 (Part II - Panels) China is one of largest wood-based panel producers in the world. Compared with large log and lumber import volumes in China, however, the import volumes of Chinese wood-based panels are relatively small, and are mostly used for high-end or specialized applications. China Particleboard Imports In 215, China particleboard imports were 635, m3, up nearly 1% from 214. The main suppliers include Malaysia, Romania, Thailand, Germany, and Vietnam. The imported particleboard products are mainly used in furniture production for re-export to the US market to meet the strict formaldehyde emission regulations (CARB) required. China OSB Imports Of total particleboard imports, OSB is included in the total and is one of main products. China imported 178,6 m3 of OSB products in 215, up 27% by volume compared with 214, where the average OSB imported price dropped from 288 USD/m3 in 214 to 256 USD/m3 in 215. Canada was the largest supplier of structural OSB supplier to China - the volume was decreased from 53,2 m3 in 214 to 45,8 m3 in 215, down by 14%. The total structural OSB imports decreased 9% by volume in 215 compared with last year. In the meantime, decorative OSB imports increased 54% by volume in 215 to 178,6 m3 as compared to 214. Decorative OSB imported from Romania and Germany increased 11% and 61% respectively by volume in 215 compared with 214. Of note, the start-up of the world s only OSB plant in China late in 215 that features a International WOOD MARKETS Group Inc. Page 4

5 China Bulletin MARCH 216 fines layer on the top and bottom of the panel (suitable surface for overlays) could impact the import volumes of decorative OSB in 216. China OSB Imports Even though the OSB import volumes from Romania (led by Kronospan and Egger) increased dramatically by 11% in 215, the OSB import value (in US$/m3) from Romania decreased by 19% over the same period. It is expected OSB products from Europe could still increase coming into China markets in 216, partly due to the currency rate advantage of Euro as well as the growing OSB production capacity in Europe. China had three new modern OSB production mills start operations in 215, adding to the one mill that started up a few years ago. China s four OSB mills have over 1 million m3 of annual production capacity. Even though those four production lines are located in different areas in China and have different market focuses, the wave of new production coupled with rising import volumes created an over-supply of OSB in the China market and OSB prices started to drop at the end of 215. Furthermore, there are another 3 to 4 new OSB mills either under construction or in the planning stages, so China s OSB production capacity could potentially get close to 2 million m3 by the end of 216. The supply/demand balance will likely get more difficult in 216 and it is more important for Chinese OSB producers and importers to find new applications and/or grow consumption of OSB in China. China Fiberboard Imports China imported 238, m3 of fiberboard (mainly MDF) in 215 this is almost no change with 214. Main suppliers of MDF include New Zealand, Australia, Germany, Thailand and Belgium. New Zealand MDF made from radiata pine has a very good market share and application in the higher end products, especially in interior decoration, furniture production for export, and crafts production. In the meantime, pine MDF imported from South America is now also trying to enter the market to replace more expensive New Zealand products, especially for use in high-end furniture applications. From the fourth quarter of 215, imported New Zealand MDF prices ranged from 28 to $37 USD/m3 (from thick sized panels to thin sized panels) and prices started to drop by around 1 International WOOD MARKETS Group Inc. Page 5

6 China Bulletin MARCH 216 USD/m3. By comparison, Chilean pine MDF prices were as low as 21 USD/m3, while Brazilian pine MDF was quoted even lower at 2 USD/m3. China Plywood Imports In 215, China plywood imports were 167, m3 by volume, representing a decrease of 6% from 214. The US announced increases on anti-dumping duties to Chinese engineered flooring exported to US market. Chinese plywood exports were used in the US as the base material for engineered flooring production. The anti-dumping duties have had a big impact on engineered flooring production in China as well as the exports to the U.S. of high quality plywood. Currently the main suppliers of plywood to China in China include: Malaysia: 66, m3 Indonesia: 32, m3 Russia: 25,9 m3 Finland: 12,1 m3 The plywood imported from South East Asia is mainly overlaid plywood made from mixed tropical hardwood species. This SE Asia imported plywood from mixed tropical hardwood (BB/CC grade) was offered at prices of 43 USD/m3 and has a very high preference and acceptance in the highend decoration and furniture markets in Guangdong province. Also, high quality plywood imported from Russian has started to enter China - this is not an overlaid plywood product but has more grades and prices that range from USD/m3. In 215, Ministry of Environmental Protection of China has defined Fiberboard, Particleboard, and Plywood as high pollution and high energy-consumption products. The Ministry of Finance and Ministry of Taxation decided to suspend the preferential policy of 7% of VAT rebate for the woodbased panel production industry, and this has made a big impact on cost structures of wood-based panel production factories in China. With efforts from different parties, the China government has now adjusted the policy and has decided that it will not put those wood-based panel products factories with standard certifications and environmental labels into high pollution and high energyconsumption companies listing. However, those fiberboard/particleboard manufacturers with annual production capacities below 5, m3 and plywood manufacturers with annual production capacities below 1, m3 will be eased out of market on a step-by-step basis: these smaller manufacturers account for about 4% of the whole industry. China s wood-based panel industry is upgrading, and this should make an impact on the prices of domestically-produced wood-based panel products, and this should yield more potential opportunities for selected imported products in coming years. International WOOD MARKETS Group Inc. Page 6

7 China Bulletin MARCH China Export & Import Statistics 3.1 China Exports 1. China: Plywood Exports by Country 13, 12, 11, 1, 9, 1,3 1,2 1,1 1, 9 x m3 / month x m3 / year 8, 7, 6, 5, 4, 3, Others Philippine s S. Arabia U.A.E UK Thailand S. Korea Japan 2, 1, 2 1 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 USA Source: CC 4, 35, 3, Annu al 2. China: Door Exports by Country Monthl 4, 35, 3, x m3 / month 25, 25, Others x m3 / year 2, 15, 2, 15, UK Nigeria S. Korea Canada Romania 1, 1, Hong Kong Japan 5, 5, USA 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 International WOOD MARKETS Group Inc. Page 7 Source: CC

8 China Bulletin MARCH China: Fibreboard Exports by Country 4, 3,5 3, x m3 / month 2,5 25 x m3 / year 2, 1,5 1, Others Turkey U.A.E S.Korea S.Arabia Iran Canada Russia USA 5 5 Source: CC 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 China: Particleboard Exports by Country x m3 / month x m3 / year Others U.A.E S.Arabia India S.Korea Mongolia 1 1 Taiwan Russia 5 5 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 Source: CC International WOOD MARKETS Group Inc. Page 8

9 China Bulletin MARCH China Imports 55, 5, 45, 5. China: Log Imports By Country 5,5 5, 4,5 x m3 / month 4, 4, Others France 35, 3,5 Ukraine x m3 / year 3, 25, 2, 15, 1, 5, D J F MAM J J A S O N D J F MAM J J A S O N D J , 2,5 2, 1,5 1, 5 Solomon Isl. Gabon Canada Australia PNG USA New Zealand Russia Source: CC 6. China: Softwood Log Imports by Country 4, 4, 35, 3, 3,5 3, x m3 / month 25, 2,5 Others x m3 / year 2, 15, 1, 2, 1,5 1, Australia Canada USA New Zealand Russia 5, 5 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 International WOOD MARKETS Group Inc. Page 9 Source: CC

10 China Bulletin MARCH , 7. China: Log Imports by Species 5,5 4, 35, 3, 5, 4,5 4, x m3 / month 3,5 Others x m3 / year 25, 2, 15, 1, 5, 3, 2,5 2, 1,5 1, 5 Oak Tropical Other softwood Larch Radiata Pine White Spruce Red Pine J F MAM J J A S O N D J F MAM J J A S O N D J Source: CC 55, 5, 45, 8. China: Log Imports by Province 5,5 5, 4,5 x m3 / month 4, 4, Others 35, 3,5 Shandong x m3 / year 3, 25, 2, 3, 2,5 2, Fujian Tianjin Guangdong Shanghai Jiangsu 15, 1,5 Heilongjiang 1, 1, Inner Mongolia 5, 5 J F M A M J J A S O N D J F M A M J J A S O N D Note: data not available at press time for this graph International WOOD MARKETS Group Inc. Page 1 Source: CC

11 China Bulletin MARCH , 26, 24, 22, 9. China: Lumber Imports by Country 2,8 2,6 2,4 2,2 x m3 / month 2, 2, Others 18, 1,8 Germany x m3 / year 16, 14, 12, 1, 8, 1,6 1,4 1,2 1, 8 Chile Finland Sweden Philippines New Zealand Thailand 6, 6 USA 4, 4 Canada 2, 2 Russia J F MAM J J A S O N D J F MAM J J A S O N D J Source: CC 18, 16, 14, 1. China: Softwood Lumber Imports by Country 1,8 1,6 1,4 x m3 / month 12, 1,2 x m3 / year 1, 8, 6, 1, 8 6 Others New Zealand Chile USA Russia Canada 4, 4 2, 2 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 Source: CC International WOOD MARKETS Group Inc. Page 11

12 China Bulletin MARCH , 26, 24, 22, 11. China: Lumber Imports by Species 2,8 2,6 2,4 2,2 x m3 / month 2, 18, 2, 1,8 Other Temperate H/W Beech x m3 / year 16, 14, 12, 1, 1,6 1,4 1,2 1, Oak Tropical Hardwood Other Softwood Douglas Fir Radiata Pine 8, 8 White Spruce 6, 6 Red Pine 4, 4 2, 2 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 Source: CC 12. China Sulfate Pulp Imports by Country 18, 16, 14, 1,6 1,4 1,2 x tonnes / month 12, 1, Others Finland x tonnes / year 1, 8, 6, 4, Uruguay Indonesia Russia Chile USA Canada Brazil 2, 2 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 International WOOD MARKETS Group Inc. Page 12 Source: CC

13 China Bulletin MARCH China Export & Import Tables (All units are x m3) 1. China Plywood Exports by Country % Change Country J YTD YTD YTD USA 1,679 1, % Japan % S.Korea % UK % U.A.E % Philippines % S.Arabia % Thailand Subscribers 29 Only % Taiwan % Vietnam % Israel % Singapore % Hong Kong % Others 4,268 3, % Total 11,85 1, , % Note: Includes laminate flooring International WOOD MARKETS Group Inc. Page 13

14 China Bulletin MARCH China Door Exports by Country 3. China Fibreboard Exports by Country Country 4. China Particleboard Exports by Country China Particleboard Export by Country (x m3) J YTD YTD % Change YTD Mongolia % India % Taiwan % S.Korea % U.A.E % Egypt Subscribers 2.6 Only % S.Arabia % Russia % USA % Malaysia % Others % Total % International WOOD MARKETS Group Inc. Page 14

15 China Bulletin MARCH China Log Imports by Country China Log Imports by Country (x m3) % Change Country J YTD YTD YTD Russia 11,376 1, % New Zealand 11,73 1, % USA 6,94 4, % PNG 3,296 3, % Canada 3,42 2, % Australia 2,347 2, % Solomon Isl. 2,194 2,222 Subscribers 14 Only % Ukraine 1, % France % Mozambique % Congo % Others 7,546 5, % Total 51,41 44,57 3,662 3,662 3, % 6. China Hardwood Log Imports by Country 7. China Softwood Log Imports by Country International WOOD MARKETS Group Inc. Page 15

16 China Bulletin MARCH China Log Imports by Species 9. China Lumber Imports by Country 1. China Hardwood Lumber Imports by Country % Change Country J YTD YTD YTD Thailand 2,23 3, % USA 1,96 2, % Indonesia % Russia 692 1, % Philippine % Gabon % Malaysia Subscribers 18 Only % Romania % Mozambique % Germany % Others 1,253 1, % Total 8,6 9, % International WOOD MARKETS Group Inc. Page 16

17 China Bulletin MARCH China Softwood Lumber Imports by Country % Change Country J YTD YTD YTD Russia 7,21 8, % Canada 6,566 5, % Chile % USA % Sweden % Finland % New Zealand % Germany % Brazil % Argentina % Others % Total 17,638 17,462 1,496 1,496 1, % 12. China Lumber Imports by Species % Change Species J YTD YTD YTD Red Pine 5,33 5, % White Spruce 7,411 7, % Radiata Pine 1,383 1, % Douglas Fir % Other Softwood 3,156 2, % Tropical Hardwood % Oak 1,47 1, % Beech % Ash % Other Temperate H/W 5,633 6, % Total 25,644 26,624 2,213 2,213 2,128 4.% 13. China Sulfate (Kraft) Wood Pulp Imports by Country Note: the units above are x tonnes International WOOD MARKETS Group Inc. Page 17

18 China Bulletin MARCH North America Log & Lumber Exports to China x m3 2, 1,8 1,6 1,4 1,2 1, USA: Softwood Log Exports to China Million Bf - Scribner Other So. Yellow Pine Spruce Western Hemlock Douglas-Fir Source: USDA 35 USA: Softwood Lumber Exports to China Million bf - net x m Other So. Yellow Pine S-P-F Mix 1 42 Douglas-Fir Hemlock 5 21 Hem-Fir Mix Source: USDA International WOOD MARKETS Group Inc. Page 18

19 China Bulletin MARCH 216 1,2 BC: Softwood Log Exports to China 185 x m3 1, Million Bf - Scribner Other Spruce DF 2 31 Hemlock Source: COFI Note: 212 and beyond is Canada Exports 2,4 Canada: Softwood Lumber Exports to China 1,18 2, 1, Million bf - net x m3 1, Other Douglas Fir/Larch Hem-Fir 4 17 SPF Source: COFI International WOOD MARKETS Group Inc. Page 19

20 China Bulletin MARCH 216 USA: Softwood Log Exports to China Western Hemlock x m3 Spruce Southern Yellow Pine Other Total Q ,299 Q , ,63 Q2 1, , ,731 Q , Q ,187 Q , ,142 Q , Subscribers 22 Only ,63 Q , ,459 Q , ,257 Q Q , Q Oct Nov Dec USA: Softwood Lumber Exports to China Douglas- Fir x m3 Hem-Fir Mix So. Yellow Pine Hemlock Douglas- Fir S-P-F Mix Other Total Q Q Q Q Q Q Q Q Subscribers Only Q Q Q Q Oct Nov Dec International WOOD MARKETS Group Inc. Page 2

21 China Bulletin MARCH 216 BC: Softwood Log Exports to China x m3 DF Hemlock Spruce Other Total Q Q Q Q Q Q Q Subscribers 15 Only ,36 Q Q Q Q Q Canada: Softwood Lumber Exports to China x m3 Douglas Fir/Larch Hem-Fir SPF Other Total Q ,148 Q ,5 27 1, , ,572 Q , , , ,988 Q , , , ,939 Q , , , ,719 Q , , , ,858 Q Subscribers 1,48 Only 39 1, , ,257 Q , , , ,429 Q , , ,69 4 2,7 Q , , , ,575 Q , , , ,43 Q , , O N D International WOOD MARKETS Group Inc. Page 21

22 China Bulletin MARCH China Prices 4.1 Log Prices *Note: Wholesale Market Prices below are the CIF delivered China port cost and include VAT (17% for lumber, or 13% for logs), documentation fees, local transportation fees, profit, etc. Disclaimer: IWMG does not take responsibility for the accuracy of the source for this information; It is intended as general information for the reader. US$ / m3 $9 $8 $7 $6 $5 $4 China: Tropical Hardwood Log Wholesale Prices in Zhangjiagang Port Annua Merbau (SE Asia) 8-99cm (Guangdong) Merbau (SE Asia) Okoume (Africa) Bintangor (PNG) Red Meranti (SE Asia) $3 $2 J FMAMJ J ASOND J FMAMJ J ASOND J F Source: CC; Note: * = YTD February Wholesale Market Price* Tropical Hardwood Logs: Guangzhou -- SE Coast RMB/m3 Average 1 mo. Change RMB/m3 US$/m3 US$/m3 Meranti (SE Asia), diameter >6 cm 21 2,1 $ Meranti (SE Asia), diameter 5-6 cm ,85 $ Merbau (SE Asia), diameter >1 cm 5,4-5,6 5,5 $ Merbau (SE Asia), diameter 8-1 cm 4,3-4,5 4,4 $ Merbau (SE Asia), diameter <8 cm 3,5-3,9 3,7 $ Source: Timber Market in Guangzhou February Wholesale Market Price* Tropical Hardwood Logs: Zhangjiagang Port -- Average 1 mo. Change RMB/m3 Largest Tropical Hardwood Log Importing Port RMB/m3 US$/m3 US$/m3 Bintangor (PNG) 2,15-2,35 2,25 $ Okoume (Africa) 1,4-1,8 1,6 $ Red Meranti Log (SE Asia) 1,93-2,2 1,975 $ 34 - Merbau log (SE Asia) 3,5-5,8 4,65 $ Source: Timber Market in Zhangjiagang Port International WOOD MARKETS Group Inc. Page 22

23 China Bulletin MARCH 216 $25 China: Russian Softwood Log Prices in Wholesale Markets $23 US$ / m3 $21 $19 Red Pine, 3 cm (Shandong) Larch, cm (Shandong) $17 $15 J F MAM J J A S O N D J F MAM J J A S O N D J F Source: CC; Note: * = YTD 4 Metre Lengths February Wholesale Market Price* Softwood log price in Shandong RMB/m3 Average 1 mo. Change RMB/m3 US$/m3 US$/m3 Larch, cm, wholesale market price 1,2 1,2 $ Red pine, 3 cm avg, wholesale market price 1,35 Subscribers 1,35 Only $ 28 - Source: Wholesale markets in Shandong, China International WOOD MARKETS Group Inc. Page 23

24 China Bulletin MARCH 216 February 216 Softwood log price CFR China port USD/m3 1 mo. Change US$/m3 Ukraine red pine, 2-25cm (35%) and 26cm+ (65%) $ 92 - Russian Larch log, 22-3cm $ Hemlock/Douglas fir log, mixed grade, debarked (28-3cm) $ New Zealand Radiata pine log, A grade $ Source: Importer in Shandong province, China Note: US $/mbf scribner conversion at 6.5 to US$/m3 February Wholesale Market Price* Imported Softwood Logs from North America (8-12 m) at Average 1 mo. Change RMB/m3 Lanshan, Rizhao port RMB/m3 US$/m3 US$/m3 Douglas Fir, <3cm diameter $ Douglas Fir, 3-38cm diameter 1,1-1,3 1,2 $ Douglas Fir, 4-48cm diameter 1,11-1,13 1,12 $ Hemlock, <3cm diameter $ Hemlock, 3-38cm diameter 98-1, 99 $ Hemlock, 4-48cm diameter 1,8-1,1 1,9 $ Souce: Timber Market in Lanshan port, Rizhao Note: Wholesale market price is based on China log scaling. International WOOD MARKETS Group Inc. Page 24

25 China Bulletin MARCH 216 $17 $16 China: NZ Radiata Pine Logs in Wholesale Markets - Shanghai $15 USD/m3 $14 $13 $12 $11 Radiata Pine, Middle A Radiata Pine, Small A Radiata Pine, Grade K $1 $9 $8 J F M A M J J A S O N D J F M A M J J A S O N D J F Source: Timber Markets in China; Note: * = YTD February Wholesale Market Price* Imported log from New Zealand (3.9 Average 1 mo. Change RMB/m3 metres long) in Shanghai RMB/m3 US$/m3 US$/m3 Radiata pine, Middle A (>3cm ) $ Radiata pine, Small A (2-3cm) Subscribers 685 Only $ Radiata pine, K (>26cm) $ Souce: Timber Market in Shanghai February Wholesale Market Price* Domestic Chinese Logs RMB/m3 Average 1 mo. Change RMB/m3 US$/m3 US$/m3 Chinese Fir, 6cm, 2 meters, at Nanning, Guangxi 7 7 $ 18 - Chinese Fir, 8-12 cm, 2 metres, at Nanning, Guangxi $ Chinese Fir, 2 cm+, 2 metres, at Nanning, Guangxi 1,16-1,18 1,17 $ 18-1 Mason Pine, 14-18cm, 2 metres, at Nanning, Guangxi $ Mason Pine, 2cm+, 2 metres, at Nanning, Guangxi $ 12 - Eucalyptus, 6 cm+, 2 metres, at Nanning, Guangxi $ Source: Timber Markets in Guangxi province International WOOD MARKETS Group Inc. Page 25

26 China Bulletin MARCH Hardwood Lumber Prices China: Hardwood Lumber Prices in Wholesale Markets $1,2 $1,15 $1,1 White Oak, #1 Com, 1" US$ / m3 $1,5 $1, $95 $9 $85 $8 $75 Red Oak, #1 Com, 1" Beech - Romania, Grade A Red Oak, FAS, I" $7 $65 $6 $55 $5 $45 J F MAM J J A S O N D J F MAM J J A S O N D J F Source: CC; Note: * = YTD February Wholesale Market Price* Imported Hardwood Lumber in Shanghai RMB/m3 Average 1 mo. Change RMB/m3 US$/m3 US$/m3 Red Beech from Eastern Europe, Grade A 4,-4,5 4,25 $ Red Oak, FAS, 2-inch, US 7,8-8,8 8,3 $ 1,277-8 Red Oak, FAS, 1-inch, US 5,2-6,8 6, $ Red Oak, COM 1, 2-inch, US 4,8-6, 5,4 $ Red Oak, COM 1, 1-inch, US 4,2-5,2 4,7 $ White Oak, FAS, 2-inch, US 1,5-12,5 Subscribers 11, Only $ 1,692 - White Oak, COM 1, 1-inch, US 5,4-6,5 5,95 $ Cherry, FAS, 2-inch, US 8,-1,2 9,1 $ 1,4 - Maple, FAS, 2-inch, US 9,5-1,5 1, $ 1,538 Black Walnut, FAS, 2-inch, US 14,5-17, 15,75 $ 2, Souce: Timber Market in Shanghai International WOOD MARKETS Group Inc. Page 26

27 China Bulletin MARCH Softwood Lumber Prices China: Softwood Lumber Prices - CIF China main ports $31 US$ / m3 $29 $27 $25 $23 $21 $19 $17 $15 $13 $11 $9 J F M A M J J A SO N D J F M A M J J A SO N D J F Radiata Pine Lumber, 25-5mm Rough KD Furniture Grade European Spruce Lumber, 22mm Metric KD S4S 5th SPF Lumber, S4S KD 2x6 #2 Grade SPF Lumber, S4S KD 2x6 Utility Grade (#3) Hemlock Lumber, 2x6 Metric Rough Green Utility/btr Grade SPF Lumber, S4S KD 2x6 Economy Grade (#4) SPF Lumber, S4S KD 2x6 Economy Grade (#4) Source: CC; Note: * = YTD Early March CIF Taicang (Shanghai) Softwood Lumber Prices in China Major Ports US$/m3 CIF China 1 mo. Change US$/m3 SPF lumber, S4S, KD, 2X4, Economy grade (#4), $15 +2 SPF lumber, S4S, KD, 2X4, Utility grade (#3) $14 +2 SPF lumber, S4S, KD, 2X4, #2 grade $19 +1 SPF lumber, S4S, KD, 2X6, Economy grade (#4), $17 +3 SPF lumber, S4S, KD, 2X6, Utility grade (#3) $ SPF lumber, S4S, KD, 2X6, #2 grade $19 +1 Hemlock lumber, 4x9 metric, rough, green, utility and better grade $ Hemlock lumber, 4x143 metric, rough, green, utility and better grade $145 - Source: Importer in Shanghai Early March CIF China Port Price US$/m3 1 mo. Change Softwood Lumber Prices in China Major Ports CIF China US$/m3 Russian Spruce lumber, metric, rough, KD, SF #1-4 $ European Spruce lumber, 22mm, metric, KD, SF #1-5 $25 +5 Radiata pine lumber, 25-5mm, rough, KD, furniture grade $25 - Source: Importer in Qingdao International WOOD MARKETS Group Inc. Page 27

28 China Bulletin MARCH 216 China: Russia Softwood Lumber Prices in Wholesale Markets $32 $3 US$ / m3 $28 $26 $24 Russian Red Pine Domestic Larch $22 $2 J F M A M J J A S O N D J F M A M J J A S O N D J F Source: CC; Note: * = YTD February Wholesale Market Price* Softwood Lumber in Dezhou, Shandong Province RMB/m3 Average 1 mo. Change RMB/m3 US$/m3 US$/m3 Russia Red Pine, 4-6 m lengths, 4-6 cm thickness 1,8 1,8 $ Domestic Larch, 4-6 m lengths, 4-6 cm thickness 1,7 1,7 $ Source: Timber Market in Shandong CHINA BULLETIN Published by International WOOD MARKETS Group Inc., Vancouver, B.C. Canada Publisher: Russell Taylor, President; China Office Manager: Jane Guo Subscription (12 issues per year): US$425 (PDF copy by ). To order an annual subscription, please contact WOOD MARKETS at: PH: FAX: info@woodmarkets.com WEBSITE: where you can order online at our Shopping Cart. International WOOD MARKETS Group Inc. International WOOD MARKETS Group Inc. Page 28