M’sia’s tropical sawnwood exports to China up 52%

KUCHING: Malaysia’s exports of tropical sawnwood to China in the January-June 2024 period (1H2024) have increased by 52 per cent to 63,000 cubic metres (cu m) from a year ago.

In terms of the value of this exported sawnwood to China, Malaysia recorded a 49 per cent jump to US$22 million during the same period.

Malaysia is the seventh largest exporter of tropical sawnwood to China this year. 

“China’s tropical sawnwood imports in the first half of 2024 reached 3.69 million cu m worth US$1.077 million, an increase of 16% in volume and 18% in value over the same period of 2023. They accounted for about 26% of its national sawnwood import total for the six months. CIF (cost, insurance and freight) prices for tropical sawnwood grew 2% to US$292 per cu m compared to 2023,” according to data from Chinese customs quoted by International Tropical Timber Organisation (ITTO) in its tropical timber market report (August 16-31, 2024).

Thailand has been China’s largest tropical sawnwood supplier for many years, and its shipments to the mainland surged by 20 per cent in volume to 2.49 million cu m and 25 per cent in value to US$631 million in 1H2024 from that of 1H2023. The Thai shipments accounted for 68 per cent of China’s total tropical sawnwood imports, an increase in share of four per cent over 1H2023. The CIF price for China’s tropical sawnwood imports from Thailand also went up by four per cent to US$252 per cu m during the same period.

“Gabon’s tropical sawnwood exports to China rose sharply in the first half of 2024, making it the country’s second largest supplier, ahead of the Philippines in the third place. The two countries accounted for 11% and 8% of China’s total tropical sawnwood imports respectively in the period. Imports from Gabon were up 59% to 402,000 cu m and the Philippines up 15% to 308,000 cu m,” said the ITTO report.

Myanmar accounted for four per cent of China’s total tropical sawnwood imports, and this was followed by Cameroon (1.9), Malaysia (1.7%), Indonesia (1.1%) , the Republic of Congo (0.8%), Laos (0.55%) and Papua New Guinea (PNG) (0.51%).

“CIF prices for tropical sawnwood from Thailand, the Philippines and the Republic of Congo grew 4%, 12% and 9% respectively. In contrast, CIF prices for most of China’s other lead tropical sawnwood suppliers declined at different rates over the same period in 2023. The price decrease of imports from PNG was largest, down 16%.”

In 1H2024, China imported a total of 13.96 million cu m of sawnwood valued at US$3.588 billion, down two per cent both in volume and value as compared to 1H2023. CIF prices for sawnwood imports increased 0.5 per cent to US$257 per cu m during the same period of comparison.

Of total sawnwood imports, sawn softwood imports fell six per cent to 8.87 million cu m, accounting for 64 per cent of the national total, down two percentage points over 1H2023. The CIF prices for sawn softwood imports increased by 0.8 per cent to US$205 per cu m.

China’s sawn hardwood imports grew five per cent to 5.09 million cu m but the CIF prices for such imports dropped three per cent to US$348 per cu m against that of 1H2023. Of the total sawn hardwood imports, tropical sawnwood imports surged 16 per cent in volume and 18 per cent in value to 3.69 million cu m and US$1.077 million.

“The main reasons for the decrease in China’s sawnwood imports mainly resulted from the slump in construction industry which has weakened China’s overall demand for imported timber.

“A seasonal slowdown caused by the rainy season in Southern China also contributed to slower overall timber demand,” pointed out the report. Russia remained the largest supplier of sawnwood to China, with shipment of 6.242 million cu m worth US$1.348 billion in 1H2024, and accounting for 65 per cent of China’s total imports. The Russian export volume declined by four per cent and value by one per cent from 1H2023.

At the same time, China’s sawnwood imports from the main supply countries also decreased and at a faster pace in 1H2024.

“Imports from Canada, USA, Finland, Germany, the Philippines and Sweden dropped 8%, 18%, 27%, 31%, 15% and 44% respectively over the same period compared to 2023. In contrast, China’s sawnwood imports from Thailand, Belarus and Gabon rose 21%, 44% and 58% respectively.

“In the first six months of 2024, China’s total sawnwood imports from USA totalled 596,000 cu m, down 18% over the period in 2023. This decrease in the overall sawnwood total is because of the decline in China’s sawn hardwood imports from USA. Some 80% of China’s sawnwood imports from USA are of sawn hardwood and these fell 25% to 484,000 cu m in the first half of 2024.

“In the first half of 2024, China’s sawn softwood imports from USA rose 38% to 111,000 cu m, accounting for 1.3% of the national sawnwood imports,” according to the ITTO report.