Economic Growth
China has the world’s largest population
(over 1.3 billion). It is evolving into
an emerging market economy and the
country has experienced significant
growth, with an average annual growth
rate in Gross Domestic Product of 8-9%
over the past 10 years. This economic
growth has been driven by low-cost
manufacturing and exports, government
and foreign investment, and the
increasing personal disposable income of
Chinese consumers. Although China is an enormous and complex country facing large-scale political, economic, social, infrastructure and environmental challenges, its government is introducing economic liberalization at a rapid pace. Many vibrant regional economies within China are driving demand for essential resources such as water, electricity, oil, minerals and wood.
Consumer Demand
Reforms in China over the past two decades have led to one of the fastest transformations in human history in terms of industrialization, urbanization, and the rise of consumerism. There is a rapidly growing segment of middle-income consumers, particularly in coastal provinces where Sino-Forest primarily operates. Millions of more people are buying or building new homes each year, driving up demand for wood-based, roof and wall framing, flooring, doors, window frames and trim, furniture and interior decoration items.
Industrial Demand
Domestic and foreign consumers are driving strong demand for wood fiber in various manufacturing industries.
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China Wood Shortage
Complete and reliable data on China’s
annual wood consumption is lacking and
there is no definitive authority
responsible for estimating the country’s
total wood consumption. Latest
available data collected from various
sources, however, indicated that China’s
annual timber consumption in 2002 was
approximately 260-350 million m3, and
other industry data indicated:
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In
2004, China consumed about 196
million m3 of roundwood including
170 million m3 from domestic
supply and 26 million m3 logs from
overseas (source: Jaakko Poyry
Consulting, March 2006); |
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In 2005, logs imported into China
reached 29.4 million m3, up 12%
from 26.2 million m3 in 2004; the
total value exceeded US$3.2
billion in 2005, up 16% from 2004
(source: International Wood
Markets Group, February 2006). |
Click here for more information about
China wood demand and supply by Poyry.
See Appendix 2.
Manufacturing Demand and Capacity
in China
The charts below indicate how
significant demand for manufactured wood
panels in China will continue to drive
both increased production and reliance on
imports into the PRC up to the year 2020.
View China's Wood Panels Production Chart
View China's Imports Wood Panels Chart
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International
forestry experts
Poyry Forest
Industry
has
projected
double-digit annual
growth in demand for
timber and wood
products, at a time
when governments in
the Asia-Pacific
region are imposing
restricted logging
to conserve their
natural forests.
This has caused huge
shortages of wood fibre, making
renewable
plantations a
long-term and
sustainable
solution. |
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