During 2006-2010, the average annual consumption of wood materials will top 700 million 3 in China, while domestic supply is less than 400 million m2. This means that, wood supply and demand gap in China will amount to about 300 million m3.

The deputy director of the State Forestry Administration, Li Yu-cai said that, currently, Chinese forest industry has many problems including imperfect resources supporting system, low integrated quality of industry, irrational industry structure, imperfect industry system etc.

At present, the contribution rate of forest industry in China is 35%, lower that 40% of the average level of other industry; the comprehensive utilization rate of wood in China was only 60%, lower 30% than in developed countries. The rate of second industry of forest industry in China is less than 50%, which is far from the 70% of this rate in global forest industry.

With the rapid development of Chinese economy and the rise of consumption of building materials, its quite important for Chinese forest companies to make good use of wood materials, promote the utilization rate of wood, and build up the correct consumption idea.