Chinese demand for US hardwood soars to $1.53b

TheexportvalueofUnitedStateshardwoodtoChinajumped34percentyear-on-yearin2014asthecountryincreaseditsdemandformoresustainablysourcedmaterialsforitsurbanizationprogramandforenvironmentalprojects.
ThevalueofUShardwoodproductssoldintoChinareached$1.53billionlastyear,accordingtodatafromtheforeignagriculturalserviceoftheUSDepartmentofAgriculture.
Themostpopulartimberwasredoak,tulipwoodandash,mainlyforfurniture,veneers,flooring,anddecorativeplywoods.Themarketnowaccountsfor42.6percentoftotalexportvolumeofUShardwoods,byfartheworld'slargestsinglecustomer.
ChinesedemandforUSwoodhadbeenfocusedonthelargepopulationcentersalongthecoast-citiessuchasShanghai,Guangzhou,TianjinandBeijing-withconsiderableamountsthenre-exportedasmanufacturedgoods,aswellasconsumedlocally.
Thefiguresshowedthatthenationshippedfurnitureworth$54billiontotheglobalmarketlastyear.
ButMikeSnow,executivedirectoroftheAmericanHardwoodExportCouncil,saidChina'sbiggestcitiesawayfromtheeastcoast-suchasChongqing,Sichuanprovince'scapitalChengduandthecapitalofHubeiprovinceWuhan-whichweretraditionallylesswell-equippedtoprocesstimber,arenowofferingtheUSindustrytremendousopportunities.
"Allthenewhomes,hotels,shoppingcenters,restaurantsandofficeblocksbeingbuiltneedflooring,cabinetry,doorsandwindows,aswellasbuildingmaterialsmadeusingwoodproducts,"saidSnow. "Thepotentialisimmense."
HeadquarteredinWashingtonDC,thecouncilisanonprofittradeassociationrepresentingover100UShardwoodexportersandtradeassociations.
JohnChan,itsregionaldirectorforChinaandSoutheastAsia,saidbeforethe2008globalfinancialcrisis,muchofthewoodboughtbyChinawasre-exportedintheformoffurniture,flooringorotherfinishedproducts.
FollowingthecollapseoftheUShousingmarketandothersinEurope,however,manyChinesemanufacturershavebeenlookingdomesticallyforsales.
"TheresulthasbeeneverhigherdemandforUShardwood,"Chansaid.
"RisingwagesinChinahavecreatedanexplodingmiddleclass,andnew,additionaldemandforUShardwoodproducts."
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