Wood in the rough market in China

Earlier Report Observations

From 2018 to 2020, the wood in the rough market in China experienced significant shifts. In 2018, stricter environmental enforcement led to the closure of many wood processing enterprises, while an increase in the number of companies intensified competition. By 2019, a slowdown in the real estate sector and market oversupply contributed to a decline in market volume to 249.6 M t. However, in 2020, a rapid recovery in construction activity following initial COVID-19-related supply chain disruptions drove a sharp increase in demand for construction timber, lifting market volume to 258.8 M t.

In 2021, housing starts reached a multi-year high, sustaining demand and pushing market volume to 260.7 M t, while the launch of wood futures contracts improved market liquidity and risk management. From 2022 onward, a prolonged real estate downturn and the substitution of wood with aluminum formwork in construction reduced consumption. Concurrently, Russia's log export ban significantly curtailed import volumes, contributing to a market size decrease to 245.4 M t in 2022. By 2023, imports continued to fall and the futures market matured, aiding industry volatility management, as the market volume saw a slight stabilization at 243.2 M t.

Production wood in the rough in China

In kind, 2017-2020, M t

Globally, China ranked as the third-largest producer of wood in the rough from 2017 to 2020.

Top producers of wood in the rough, 2017-2020

World map of production of wood in the rough, 2017-2020

In 2020, China produced 210.1 million tonnes of wood in the rough, marking a 5.2% increase compared to the previous year. The lowest production level was recorded in 2019 at 199.7 million tonnes, while the peak occurred in 2018 with 216.2 million tonnes. The most significant decline was observed in 2019, when production fell by 7.6%.

Annual dynamics of production in China in kind, 2017-2020, M t

In value, 2017-2020, M $ US

Wood in the rough production in China declined for the second consecutive year. In 2020, the output was valued at 51 889 million US dollars, reflecting a modest decrease of 5.2% year-over-year. From 2017 to 2020, production dropped by 13.4%, which translates to an annualized decline of 4.7%. The highest value was recorded in 2018 at 64 961 million US dollars. The largest decline occurred in 2019 with a 15.8% drop, while the most notable increase was in 2018, rising by 8.4%.

Annual dynamics of production in China in value, 2017-2020, M $ US

Exports wood in the rough from China

Exports in kind, K t

Wood in the rough exports from China declined for the third consecutive year. In 2020, exports totaled 26 thousand tonnes, representing a sharp decrease of 53.0% compared to the previous year. Between 2017 and 2020, exports fell by 75.5%, equivalent to an annualized decline of 37.4%.

Annual dynamics of product's exports from China in kind, 2017-2020, K t

From 2017 to 2020, Vietnam and Bangladesh dominated China's wood in the rough exports in volume terms, together accounting for 99.5% of total shipments.

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, M $ US

Foreign supplies of wood in the rough from China declined for the third consecutive year. In 2020, exports amounted to 6 million US dollars, indicating a dramatic contraction of 57.7% from 2019. Over the 2017-2020 period, exports decreased by 78.5%, with a compound annual growth rate (CAGR) of -40.1%.

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

From 2017 to 2020, Vietnam accounted for the majority of China's wood in the rough exports in value terms, capturing 86.8% of total flows, while the remaining share was distributed among a fragmented group of other markets.

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

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

Imports wood in the rough to China

Imports in kind, K t

The volume of wood in the rough imports into China declined for the second consecutive year. In 2020, imports reached 48 727 thousand tonnes, corresponding to a 2.4% decrease compared to 2019. Over the 2017-2020 period, imports increased by 2.1%, with a CAGR of 0.7%. The highest import volume was recorded in 2018 at 51 612 thousand tonnes. The largest decline occurred in 2019 with a 3.3% drop, while the most significant increase was in 2018, rising by 8.2%.

Annual dynamics of product's imports to China in kind, 2017-2020, K t

From 2017 to 2020, New Zealand (25.9% of imports in volume), Russia (15.9%), and the United States (8.7%) were the primary suppliers of wood in the rough to China, jointly accounting for 50.5% of total imports in kind.

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, M $ US

The volume of wood in the rough imports into China declined for the second consecutive year. In 2020, China imported approximately 8 401 million US dollars worth of wood in the rough, constituting a solid drop of 10.9% versus the previous year. Between 2017 and 2020, imports decreased by 15.3%, equating to an annualized decline of 5.4%. The maximum value was recorded in 2018 at 10 985 million US dollars. The largest decline occurred in 2019 with a 14.1% decrease, while the most notable increase was in 2018, rising by 10.8%.

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

The structure of imports in value terms from 2017 to 2020 reveals a diversified set of trading partners. New Zealand (22.0% of imports in value), Russia (11.2%), and the United States (10.6%) jointly accounted for 43.9% of total flows, while the remaining 56.1% was spread across numerous smaller markets.

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

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