Domestic demand strengthens US hardwood sector

More shipments likely this year as some countries impose tougher curbs on exports

Hardwood exports from the United States to China will surge this year on the back of renewed domestic demand and dwindling timber shipments from Brazil, Myanmar, Ghana and Gabon, industry sources said on Wednesday.

Mike Snow, executive director of the American Hardwood Export Council, said hardwood exports from the US will see a steady uptick this year despite the lackluster performance of the real estate industry in China.

"China has entered the second phase of urbanization, which will trigger fresh demand for hardwood and timber products, especially in second-and third-tier cities," Snow said.

Exports of US hardwood products to China reached $1.13 billion in 2013, up 33 percent on a yearly basis. Red oak, tulipwood and ash that can be made for furniture, floor boards and eco-friendly building materials are the most popular US timber products exported to China.

Snow said that China's ongoing urbanization process and fast-growing residential building numbers have created a new generation of increasingly affluent consumers who are keen to fit their homes and offices with quality interior furnishings made from US hardwood.

The US is the world's largest producer and exporter of hardwood lumber, accounting for more than 22 percent of global shipments.

"China, as the world's largest importer of hardwood, is not only importing a large amount of US hardwood to process into furniture in the international market, but is also using it to produce items such as new building materials and cross-laminated timber that can help cut carbon emissions and improve the domestic environment," said John Chan, AHEC's regional director for Southeast Asia and China.

Headquartered in Washington DC, AHEC is an international non-profit trade association of the US hardwood industry. It represents over 100 US hardwood exporters and major hardwood product trade associations in the US.

A research by China's State Forest Administration shows that the country's wood demand will rise to 800 million cubic meters by 2020.

The Chinese government plans to build 1 billion square meters of "green" buildings between 2011 and 2015. It has also said that eco-friendly buildings will account for 20 percent of all the new urban buildings by 2015.

To fulfill this growing demand and to ensure a smooth supply chain, the SFA has put forth the suggestion of simultaneously optimizing the usage of both international and domestic wood sources.

Deng Huafeng, a professor at Beijing Forestry University, said another pushing point that has stimulated China's hardwood imports is the government's protection of the country's limited wood resources.

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