Coniferous wood fuel market in China

Earlier Report Observations

The market volume for coniferous wood fuel in China contracted from 66 436 thousand m³ in 2018 to 60 750 thousand m³ in 2023. This decline was primarily driven by a persistent slowdown in the real estate and construction sectors, which reduced demand for wood-based materials. The COVID-19 pandemic in 2020 exacerbated the trend by disrupting global timber supply chains, leading to production constraints and tighter market conditions.

In parallel, government policies maintained zero import tariffs and a 9% VAT to encourage timber inflows, yet import volumes became volatile and ultimately fell as the market entered a destocking phase. Structural shifts within construction, notably the growing substitution of wood with aluminum formwork, further dampened demand. The industry also began adapting to new financial instruments, with the Dalian Commodity Exchange preparing to launch log futures by 2024 to provide price risk management tools.

Environmental regulations and green building initiatives supported niche segments like eco-friendly wood fillers, but this demand could not counterbalance the broader market contraction. By 2023, China's log imports had fallen to a ten-year low, reflecting the adjusted consumption patterns and ongoing recalibration of supply chains.

Production coniferous wood fuel in China

In kind, 2017-2020, K m³

From 2017 to 2020, China was the world's largest producer of coniferous wood fuel.

Top producers of coniferous wood fuel, 2017-2020

World map of production of coniferous wood fuel, 2017-2020

Coniferous wood fuel production in China declined for the third consecutive year. In 2020, China produced 63 548 K m³ of coniferous wood fuel, marking a slight drop of 1.9% compared to the previous year. Between 2017 and 2020, production decreased by 5.5%, which translates to an annualized rate of 1.9%.

Annual dynamics of production in China in kind, 2017-2020, K m³

Exports coniferous wood fuel from China

Exports in kind, K m³

China's coniferous wood fuel exports increased for the third consecutive year. In 2020, China exported 0.7 K m³ of coniferous wood fuel, representing a significant rise of 2 992.1% from the year before. Over the period from 2017 to 2020, exports surged by 6 868.9%, with a compound annual growth rate of 311.5%.

Annual dynamics of product's exports from China in kind, 2017-2020, K m³

Between 2017 and 2020, Japan accounted for 87.6% of total exports in volume, while the remaining flows were distributed among a broad group of smaller countries.

Structure of product's exports in kind by countries, 2017-2020

World map of product's exports from China in kind, 2017-2020

Exports in value, K $ US

China's coniferous wood fuel exports increased in value for the third consecutive year. In 2020, exports totaled 333 K US dollars, indicating a substantial increase of 935.2% year-over-year. From 2017 to 2020, exports grew by 5 385.8%, equating to an annualized rate of 280.0%.

Annual dynamics of product's exports from China in value, 2017-2020, K $ US

From 2017 to 2020, two leading markets—Japan and the United States—together accounted for 87.7% of total exports in value terms, with the remaining volume dispersed across a wide range of other countries.

Structure of product's exports in value by countries, 2017-2020

World map of product's exports from China in value, 2017-2020

Imports coniferous wood fuel to China

Imports in kind, K m³

The market showed an unstable trend throughout the timeframe. Imports reached their lowest point in 2019 at 290.0 K m³, then peaked in 2020 at 505.7 K m³, representing a 1.7-fold variation. In 2020, China imported 505.7 K m³ of coniferous wood fuel, showing a sharp uptick of 74.4% compared to 2019. The largest decline was recorded in 2019 at 35.7%.

Annual dynamics of product's imports to China in kind, 2017-2020, K m³

Over the period from 2017 to 2020, Australia (53.0% of imports in volume), Russia (15.9% of imports in volume), and Fiji (11.2% of imports in volume) stood out as the main sources for imports, together representing 80.1% of total flows.

Structure of product's imports in kind by countries, 2017-2020

World map of product's imports to China in kind, 2017-2020

Imports in value, K $ US

The market exhibited volatility over the observed period. The lowest value occurred in 2019 at 27 743 K US dollars, while the highest was in 2018 at 54 665 K US dollars, resulting in a peak-to-trough ratio of 2 times. In 2020, China imported a total of value_last_year K US dollars of coniferous wood fuel, amounting to a rise of 79.5% year-over-year. The largest decline was recorded in 2019 at 49.3%.

Annual dynamics of product's imports to China in value, 2017-2020, K $ US

Between 2017 and 2020, Australia (59.1% of imports in value terms), Fiji (11.1% of imports in value terms), and the United States (10.1% of imports in value terms) were the main destinations in the geographical breakdown of coniferous wood fuel imports to China, with a combined share of 80.2% of total flows.

Structure of product's imports in value by countries, 2017-2020

World map of product's imports to China in value, 2017-2020