KUCHING: China has sharply increased the imports of rubberwood from Thailand and paid much higher prices for the raw material. In the first five months of 2024 (5m2024), China raised the imports of rubberwood from Thailand by 27 per cent to 2.12 million cubic metres (cu m) and forked out 32 per cent more to US$530 million to pay for the imported volume as compared to a year ago, according to China Customs data.
The rubberwood prices are expected to go up further based on recent news from the Thai Rubber Association, reported International Tropical Timber Organisation (ITTO) in its latest Tropical Timber Market Report (July 1-15 2024). It was reported that the export price increase for Thai rubberwood is not merely rumour but has been driven by the following reasons: (1) Raw material costs are rising.
The arrival of the rainy season created challenges for collection and transportation of rubberwood logs, resulting in tight supply; (2) Surge in shipping costs. Sharp fluctuations in international shipping rates have increased shipping costs, pushing up landed prices; (3) Market price is rebounding.
The rubberwood market price had been at a low level for a long time (ranging from US$200-400 per cu m) but a rebound in prices has become the market consensus.
“Over the past months, the price of rubberwood imported by China has shown a clear uptrend. Since February, the average unit price (CIF) of Thai rubberwood has shown a month-on-month increasing trend. Compared to the same period in 2023, prices edged up 1% in February, then increased by 3% in March and again rose 7% in April.
“Given that Thailand is the main source of China rubberwood import, the sharp increase in prices will have a direct impact on the Chinese demand. It is anticipated that the price of rubberwood arriving in the third quarter of 2024 cost even more,” added the report. Rubberwood is used mainly to make furniture and other products.
Besides rubberwood, Thailand is the largest supplier of particleboard to China, which has also significantly increased shipments from Malaysia and Vietnam. In the first quarter of 2024 (1Q2024), China’s particleboard imports from Thailand amount to 54,000 tonnes valued at US$13 million, up 59 per cent in volume and 45 per cent in value over the same period in 2023. “China’s total particleboard imports were 155,000 tonnes valued at US$60 million in the first quarter of 2024, up 36% in volume and 13% in value over the same period of 2023.
“China’s particleboard imports from Brazil, the second largest supplier, rose 56% to 32,000 tonnes in the first quarter of 2024 and this contributed to the rise in total particleboard imports. “In addition, China’s particleboard imports from Malaysia, Poland and Vietnam surged more than 100%, 700% and 200% respectively in the first quarter of 2024, resulting in the increase in total of particleboard imports.
In contrast, China’s particleboard imports from Romania, alone among the top suppliers, fell 49% to 10,000 tonnes in the first quarter of 2024,” said the ITTO report. On fibreboard, China imported 39 per cent less from Thailand to 1,300 tonnes and eight per cent less from Indonesia in 1Q2024.
On the other hand, China sharply increased its imports of fibreboard from Belgium, Spain, Russia, Switzerland and Netherlands during the same period. In 1Q2024, China’s fibreboard imports grew nine per cent to 92,000 tonnes as shipments from most supplying countries surged. On the other hand, China’s exports of fibreboard surged by 33 per cent to 608,000 tonnes valued at US$312 million (+24%) in 1Q2024 as compared to 1Q2023.
Exports to Saudi Arabia soared by 159 per cent to 93,000 tonnes, to Mexico increased by 69 per cent to 74,000 tonnes and to Vietnam rose 56 per cent to 64,000 tonnes. Shipments to the US expanded by 30 per cent to 32,000 tonnes and to Canada climbed by 83 per cent to 28,000 tonnes. Meanwhile, China has come up with a revised “Interior decoration materials wood-based panel and products formaldehyde emission limit” draft.
The revision of the national mandatory standard for the industry will usher in a new round of industrial quality improvements, and will introduce formaldehyde emission EO level for the first time.
