China Forestry Group New Zealand, a subsidiary of a Chinese state enterprise recently announced that it had purchased 13,600 hectares of forest land in New Zealand. The company is forecasting that plantations on its land will produce around 7 million cubic metres of logs in 2045.
This acquisition provides the China Forestry Group a permanent base in New Zealand and marks the company's first foray into buying forest land as it seeks to expand its overseas operations. The Chinese group is currently one of New Zealand's largest wood exporters, shipping around 75,000 cubic metres of logs to China every month.
China Forestry Group joins a growing list of offshore investors interested in land assets in New Zealand. Last year, Korea's Sunchang Corp. bought 3,000 hectares of forest land in Marlborough, in New Zealands South Island. However, purchases of land by foreign companies has raised concerns that they are pricing local farmers out of the market. Rural land prices rose 11.3% between March 2011 and March 2013 according to data from the Real Estate Institute of New Zealand.
New wood processing zone for Puyang
Zhe Yu Wood industry Co., Ltd has invested RMB5 billion yuan to establish a large wood processing zone in Puyang City of Henan Province. It has been reported that wood processing, materials R&D and business services will be concentrated at the new site which will focus on plywood and added value product manufacturing.
The investment will be in three phases, RMB1.2 billion yuan will be invested in the first phase and the value of the annual output is forecast at RMB3 billion yuan. On completion of the investment this will be one of the largest wood processing operations and will extend over an area of 320 hectares.
Transformation at Taicang Port generates income and jobs
According to the statistics from Jiangsu Taicang Inspection and Quarantine Bureau, timber imports through Taicang Port rose 18 percent to 4.90 million cubic metres in 2012, elevating the port to the number one in terms of timber imports.
Sawnwood imports through Taicang Port reached 1.38 million cubic metres or 29 percent of the national total sawnwood imports in 2012. Containerised logs imports have increased and in 2012 the number of containers handled at the port rose over 200 percent to 37,000.
Timber from Russia once dominated the cargo hanled at the Port but this has changed as more shipments from more countries are directed through Taicang. Cargoes of logs from North America rose dramatically in 2012 to 2.91 million cubic metres, accounting for 60 percent of the total log imports through Taicang Port.
Log imports from Southeast Asian and Oceania countries also increased. There are more than 100 wood processing enterprises around Taicang Port The increased timber imports are generating greater income for the port authority and Customs and are also stimulating development of the insurance, warehousing, processing and transportation sectors.
Reports indicate that as a result of the increased business through the port more than 1000 jobs have been created. Special fund for green construction It has been reported that Guangdong provincial government will now open its ‘energy-saving special funds’ to the construction sector in order to promote energy saving and green house gas emission reduction.
In the past the ‘energy saving special fund’ in Guangdong Province was only for industrial enterprises and projects but this year the fund will be extended to the construction field. To promote green building the Guangdong provincial government will provide subsidies for the major projects after getting third party evaluation.
Reports indicate that subsidies of yuan 25 per square metre will be granted for a two star ranked building and that the maximum subsidy will not exceed RMB1.5 million for one project. Yuan 45 per square metre will be granted for three star ranked buildings for which the maximum subsidy will not exceeded RMB2 million for one project. The subsidies will not exceed 50 percent of investment for public sector projects and will not exceed 20 percent of investment for green projects in non public sectors.
Guangzhou Yuzhu International Timber Market
Logs |
Yuan/cu.m |
|
Lauan |
Dia. 60 cm+ |
2000-2200 |
Kapur |
Dia. 80 cm+ | 3100-3200 |
Merbau |
Dia. 100 cm+ | 5200-5400 |
Teak |
Dia. 30-60 cm |
6500-13000 |
Wenge |
4300-4800 |
|
Red Oak (France) |
Dia. 30 cm+ |
2500-2600 |
Purpleheart | Dia. 60 cm+ | 3500-3600 |
Rosewood | 3700-4200 | |
Sawnwood |
||
Maple |
Grade A |
7500-9500 |
Walnut USA |
FAS 2 inches |
14000-16000 |
Cherry USA |
FAS 2 inches |
10000-12800 |
Sapelli |
Grade A |
6600-7000 |
Okoume |
Grade A |
4200-4500 |
Teak (plantation) |
Grade A |
9600 |
Shanghai Furen Forest Products Wholesale Market
Logs |
Yuan/tonne |
|
Red Sandalwood India |
All grades |
1-2 mil. |
Rengas (Vietnam and Nepal) |
All grades |
7000-8800 |
Granadillo (Mexico) |
All grades |
7500-8000 |
Sawnwood |
Yuan/m³ |
|
Okoume (Africa) |
grade A |
4300-4700 |
Sapelli (Africa) |
grade A |
5800-6300 |
Beech (Europe) |
grade A |
4500-4800 |
Red Oak (North America) |
2 inches FAS |
7000-7300 |
Cherry (USA) |
2 inches |
9800-10500 |
Maple (USA) |
2 inches |
8700-8900 |
Merbau (Indonesia) |
All grade |
8500-13500 |
Hangzhou Timber Market
Logs | Yuan/m³ |
|
Ash |
4m 30cm |
3200-4800 |
Larch |
4m 8-10cm |
1800-2900 |
Linden |
4m 26cm |
2400-3500 |
Sawnwood |
||
Beech (Europe) |
All grades |
2800-5000 |
Black walnut (N. America) |
All grades |
7000-13000 |
Teak (Myanmar) |
All grades |
9000-18000 |
Red oak (N. America) |
All grades |
3500-5000 |
Alder (Myanmar) |
All grades |
4500-5300 |
Merbau |
All grades |
7200-12000 |
Plywood |
Yuan/sheet |
|
Red beech |
3mm |
50-75 |
Black walnut |
3mm |
60-102 |
Teak |
3mm |
70-148 |
Shandong De Zhou Timber Market
Logs |
Length |
Diameter |
Yuan/cu.m |
Larch |
4m |
18-22 cm |
1230 |
4m |
24-28 cm |
1250 |
|
4m |
30 cm |
1450 |
|
6m |
18-22 cm |
1280 |
|
6m |
24-28 cm |
1300 |
|
6m |
30 cm |
1500 |
|
White Pine |
4m |
24-28 cm |
1320 |
4m |
30 cm |
1400 |
|
6m |
24-28 cm |
1350 |
|
6m |
30 cm |
1400 |
|
Korean Pine |
4m+ |
1700 |
|
6m+ |
1750 |
||
Mongolian Scots Pine |
4m |
30cm |
1380 |
4m |
36cm |
1500 |
|
6m |
30cm |
1420 |
|
6m |
36cm |
1600 |
Wenzhou Timber Trading Market
Logs |
Yuan/m³ |
|
Ash |
2m 20-30cm |
1300 |
Chinese fir |
4m 16-18cm |
1500 |
Wenge |
all grades |
4500-5100 |
Teak (plantation) |
all grades |
2100-2500 |
Merbau |
all grades |
3500-5000 |
Spelle |
all grades |
3200-3700 |
Plywood |
Yuan/sheet |
|
Red beech |
4'x8'x3mm |
40-80 |
Black walnut |
4'x8'x3mm |
40-85 |
Teak |
4'x8'x3mm |
45-110 |