China maintains position as world’s largest furniture producer

During the past few years, CW China has been working to position Canadian lumber for China’s manufacturing sector. According to a recent report, China accounts for 41% of the world’s furniture production. 

According to a study by The Center For Industrial Studies Milano (CSIL) issued “International Furniture Market Research Report from 2017 to 2018”. China is the most important country for furniture manufacturing, accounting for 41% of global production.

In general, when it comes to furniture production, Asia-Pacific leads the pack and in 2016, more than half of the world’s furniture was produced in the region. Between the years 2007 to 2016, the volume of furniture production has increased more than 100%. For example, Vietnam surpassed the US as the fifth largest furniture export country in the world.

CSIL studied 70 countries which contribute the most to furniture industry, their overall gross value of production in 2015 worth around USD 406 billion. CSIL predicts that the volume of consumption will increase 2.7% on average by the end of year 2017. According to the report, the annual furniture consumption varies in 2017 is expected to vary by region: -0.9% in Southern America; +1% in European Union countries and Norway, Switzerland and Iceland; +1.3% in Central and East Europe countries except EU and Russia; +2.1% in Mid-east and Africa; +2.9% in North America and +3.7% in Asia-Pacific.

This report also indicated the major furniture import countries are US, Germany, UK, France and Canada and biggest furniture export countries are China, Germany, Italy, Poland and Vietnam.

Source:

Center For Industrial Studies Milano (December, 2016). International Furniture Market Research Report from 2017 to 2018.

Puhua Dragon Bridge – the historic wind and rain bridge built by Glulam

Zhuoshui Town

Zhuoshui Town is a famous town of cultural and historical significance; it has been recognized as a 4A class scenic spot by the Chinese government. The town is located in the South-East corner of Qianjiang District of Chongqing, 26 kilometers away from the main town of Qianjiang, next to the Apeng River which is the main tributary of Wujiang River. There are stilted building groups built by the Tujia Minority, including piers and markets in the town that date back thousands of years.

The old Zhuoshui Wind and Rain Bridge was burning (photo source: https://baijiahao.baidu.com/s?id=1574191229584568&wfr=spider&for=pc )

Before 2013, Zhuoshui Wind and Rain Bridge crossed the Apeng River. The former bridge was more than 300 meters long and was known as ‘Asia No.1 Wind and Rain Bridge without any nail. Unfortunately, it was burned down in 2013.

Wind and Rain Bridge is a bridge style which is built by the Dong Minority of China with their unique carpentry skills. The pavilions built on “Wind and Rain Bridges” provided shelter to people from the wind and rain. A Wind and Rain Bridge is normally composed of the bridge, a tower and a pavilion, with wood being the main building material. These bridges are considered one of the main scenic spots in Zhuoshui. The local government decided to re-build not only a new one, but also a “world longest Wind and Rain bridge”, which will consist of three sections and reach to 600 meters length.

Puhua bridge under construction.

Puhua Dragon Bridge is one of the three sections which expands the western side of the Wind and Rain Bridge to connect the banks of Puhua River. Puhua Dragon Bridge has two levels on the ground. The structure is mainly based on wood framing construction and supplemented by steel construction. The foundation is pad footing and the whole bridge is divided into three spans. The total length of the bridge is 92.8 meters and the height is 12 meters high. There are the towers on the bridge and the height is 14.3 meters. The building area of Puhua Dragon Bridge is 1294.4 m2 in total. Douglas Fir has been used for all Glulam beams and posts.

Puhua Dragon Bridge under construction

Once it finished, it will be open to tourists and benefits to Zhuoshui Town – one of four characteristic towns in Chongqing issued by China. From this project, we can tell a potential usage for Canadian lumber in resort sector, especially with projects using traditional Chinese construction methods. For Canada Wood, we will explore more opportunities to use wood as a building materials.

Wood prefabricated construction getting attention

CW China’s booth at ESBuild

Canada Wood China participated in a 3-day trade show – “2017 10th Green Architecture and Construction Materials Expo” (also known as “ESBuild”) from July 5th to July 9th. The trade show is recognized as the top exhibition of green building materials in Asia.

We built a 36m2 booth with Douglas-fir glulam inside which promotion materials of video, model and banners highlighting wood prefabrication technology are displayed. As China is undergoing massive urbanization and construction industrialization has been put on the priority of government agenda, Prefabricated Energy Efficient Wood

Construction industrialization seminar

Wall (PEEWW), a key wood prefabrication product we launched recently very well fit with the government push and market trend. Our displays of Canadian lumber products and illustration banners play a key role in changing industry professionals’ misperception towards wood usage in construction and inspiring them to adopt wood as green building materials. Our business development staffs at the booth worked hard to relay the below messages to visitors:

  • Wood is a green and environmentally-friendly building material.
  • Wood construction is a low-carbon, prefabricated and energy-saving building system.
  • PEEWW is an advanced and preferred solution that can work with mainstream concrete and steel structure to meet construction industrialization needs.
  • The tallest wood hybrid building in Canada is a good example of prefabrication wood building system.

Eric Wong accepting interview with STV

Together with the trade show, a technical seminar in topic of building industrialization was organized on the opening day of the show. Keynote speakers of Mr. Zhen Ling from Truslink (more about Truslink, click here), Professor Xiong Haibei from Tongji University and Mr. Yuan Jinghu from Prefabrication Committee gave presentations to over 120 audience.

Another highlight on the trade show is that Eric Wong, Managing Director of CW China accepted an interview with Shanghai TV Channel – one of the most influential local TV channels in China. The interview video was aired on July 10 via STV channel program. View video clip please click here.

Our booth received over 6,000 visitors and our social media platform (WeChat) monitored a growth of followers of 200 by the end of trade show.

“Making waves, moving markets”

“Making waves, moving markets” – William Pang, MD Shanghai Pablo Exhibition Co., Ltd.

Canada Wood China’s booth in Sylva Wood

Canada Wood China participated in the Sylva Wood Trade Show from June 26th to June 28th in Shanghai. As Asia’s only trade expo for sourcing wood materials, Sylva Wood Trade Show attracted lots of professional visitors attending. We received a visitors from a range of backgrounds who are looking for suppliers and new materials, including:

  • Furniture manufacturers
  • Door and window manufacturers
  • Developers
  • Lumber distributors
  • Builders

These are all within CW China’s primary target group. During the trade show, we introduced different species of lumber from Canada, their application in construction and manufacturing, as well as advanced wood technology. We built a valuable connection with customers who are eager to find a reliable supplier. We are exploring more exporting opportunities for Canadian lumber, especially in manufacturing sector.

As manufacturing is China’s second largest consumer of lumber, we need to carve a market for Canadian wood products. Just as Willian Pang, the organiser of this trade show, said in welcome message “making waves, moving markets”, Canada Wood China is doing a series of promotional activities, such as trade shows and lumber grading seminars, to gain a foothold in the furniture market.

CW China participated with a 27 m2 booth, built with Canadian Douglas-fir glulam; displaying various Canadian lumber samples, such western red cedar, yellow cedar and hemlock.

Lance Tao introducing Canadian lumber to visitors

One of our booth’s highlights is the 1:40 scale Brock Commons model. The real project is the tallest wood building in the world. Lance Tao, marketing and communication director of CW China, also gave a presentation of the case study of this project in the trade show seminar session. We received some valuable questions after presentation from audience, such as:

  • How about the cost of CLT compared with concrete?
  • Is there any CLT project in China now?

At the end of trade show, our booth received 5,000 visitors. It provided a good platform to know about the market trend and communicating with our consumers.

China Economy, Construction & Lumber Shipments

2nd quarter highlights: 

  • GDP of 2nd quarter expanded 6.9% year-on-year
  • Industrial output was up 7.6% in June year-on-year which beat the estimated 6.5% increase
  • Fixed-asset investment rose 8.6% in the first half of this year which also surpassed the forecast of 8.5% gain
  • Retail sales climbed 11% in June year-on-year compared with a median estimate of 10.6% in a Bloomberg survey

China’s GDP grew 6.9% in the 2nd quarter which is the same figure compared to the previous quarter and slightly higher than most predictions and above Beijing’s stated growth target for year 2017. However, analysts forecasted this speedy growth will be difficult to maintain in the coming months as the government is now slowing down its rapidly ballooning debt.[i]The economic growth of 2nd quarter was partially driven by stronger exports and production especially steel; this growth also strengthened the economy to meet the growth target of year 2017 (6.5%) which would provide rooms for policymakers to defuse financial risks. In the meantime, the growth of the property sector has cooled this year, the growth of exports after several years of decline helps prevent the slowdown of China’s economy.[ii]

Caixin PMI indexes in the 2nd quarter were way lower than the 1st quarter where the figure in May hit the bottom (49.6) and the June figure (50.4) was only slightly higher than April (50.3).[iii] Exports value on the other hand was rising steady from USD 180.0 billion(April) to USD 196.6 billion (June) and reached the highest figure since this year.[iv]

China Consumer Price Index (CPI) kept a rising trend in the 2nd quarter started 101.2 in April which was already higher than both figures from February (100.8) and March (100.9) and up to 101.5 in both May and June.[v] USD/CNY kept steady at 6.89 on both April 1st and May 1st and then declined from 6.81 (June 1st) to 6.78 (June 30th)[vi]; CAD/CNY fluctuated from 5.17 (April 1st) to 5.04 (May 1st) to 5.05(June 1st) to 5.23(June 30th)[vii].

Building material prices

Regarding common building material prices, price for cement in China decreased 2.74% from RMB 316.00 per metric ton on June 1st to RMB 307.33 per metric ton on June 30th [viii]; rebar steel was worth RMB 3,693.12 per metric ton on June 1st and then dropped 2.91% to RMB 3,585.62 per metric ton on June 30th [ix].

Wood Export to China[x]

From January to May 2017 the forestry fixed asset investment worth RMB 73.18 billion which increased 11.8% year-on-year. During the same period China imported 3.5 million m3 of wood from Canada with 5.1% of overall growth year-on-year, log imports increased 49.4% year-on-year. Currently the main channel for China to import Canadian wood is by general trade and more than 50% of the import volume goes through Nanjing Customs to various regions in Jiangsu province. According to official statistics from January to May 2017 China imported 3.4 million m3 of wood from Canada by general trade which constitutes 97.5% compared to processing trade (1.1%) and bonded warehouses (1.4%).

[i] Rishi Lyengar (July 17th, 2017). China’s economic growth remains stable at 6.9% in the second quarter

[ii] Elias Glenn and Kevin Yao (July 17th, 2017). China’s strong second-quarter GDP growth paves way for deeper reforms

[iii] Trading Economics (July, 2017). China Caixin Manufacturing PMI

[iv] Trading Economics (July, 2017). China Exports

[v] Trading Economics (July,2017). China Consumer Price Index (CPI)

[vi] XE Currency Charts: USD to CNY

[vii] XE Currency Charts: CAD to CNY

[viii] Sunsirs (July 2017). Spot Price for Cement

[ix] Sunsirs (July 2017). Spot Price for Rebar Steel

[x] BOABC (April to June 2017). China Wood and Its Products Market Monthly Report