It is generally believed that winter this year will be the most difficult in recent years for the wood products markets in Beijing. All markets, construction, production, decoration, and furniture are hitting their bottoms.

 

Although timber from Northeast China still holds its position in the log markets of the capital city, sales were less than expected. The same situation holds for Russian timber. Prices for North America logs continued to fall, dropping by 20¡«30% over the previous year and have decreased $10¡«20 over last month. African timber also suffers from the market depression, and distributors were holding large inventories as demand dropped greatly. Except for Padauk, Sapelle, always the best-selling species in the capital market, recorded a drop in price as well. As for the market for mahogany from Southeast Asia, its consumption and collection were heavily attacked by the financial crisis. Consequently the demand for high-quality mahogany was slack over recent months. Only the markets for some medium volume products were fairly good, for example: Merbau; Siamese Senna; Monzo; and Balau.

 

Due to the overall depressed markets, the market for logs from South America was likewise also slack. The negative consequences from the rapid slowdown in the markets for North Sea timber has become more and more obvious as the Russian government successively increased its export duties. It is remarkable how quickly Radiata Pine from New Zealand has become competitive in both quality and price with Russian logs, although Radiata Pine has not yet become a major force in the log markets in North China.

 

The lumber market is much more complex because of the diversity of applications. The sales of African lumber continued to drop as the distributors held a “wait-and-see” attitude and stopped all new purchases. As a result, even the most popular African lumber like Okoume and Sapelle registered a drop in sales. In addition, the prices for North American lumber, even for Douglas fir all have dropped. This list includes hardwood species such as Oak, Maple and Black Walnut. Along with this drop, it was also reported that prices for European hardwoods also fell. In contrast, Indonesia and other Southeast Asian countries have taken action to avoid huge financial loss and the consequent unemployment problem. They intend to lift their exports to China. It is worth noticing that the price for native lumber from Northeast China, like Ash, Mongolica and basswood, remained stable as there is still big demand for it. As for Russian timber, sellers are forced to shake their heads because of its increasingly ridiculous price.  

 

On the whole, the wood-based panel market in the capital city was stable for most types of panels. This is because the central government, against the background of financial crisis, has carried out a series of policies for expanding investment and domestic demand. Prices for wood-based panels, on the whole, show no significant variation from the previous period, but the price of OSB has increased as supplies fell short of demand. Along with changes in people’s aesthetic perceptions, consumption habits, and heightened awareness of environmental conservation, users are more willing to use laminated timber and engineered wood products, thus supporting sales of these products in the capital city and Jing-Jin-Ji delta economic region. Generally speaking, the market demand and prices for plywood, particleboard and MDF were quite stable, especially for several of the high-quality products. However, for some medium and lower-grade products, demand and prices recorded a drop. 

 

Recently the consumption of treated timber and wood veneer registered a drop. However, from a long-term perspective, wood products with a wood veneer surface are expected to be popular as they satisfy environmental protection requirements. In terms of price, treated timber remained steady on the whole, while wood veneer prices recorded a slight drop.