According to recent statistics China's wood flooring consumption reached 220 million square metres in 2002. Of this, the volume of solid wood flooring was about 90 million square metres, a year-on-year increase of 5.5%. The overall growth in demand for wood flooring strengthened the market share of laminated flooring. Local analysts predict that the total consumption of solid wood flooring in 2003 will exceed 120 million cubic metres.

Russian log exports to China surg
China imported only 529 000 cubic metres of Russian timber in 1996, accounting for 16.5% of total log imports and among the major log supply countries, Russia only ranked third, behind Gabon and Malaysia. However, in 2002, China imported 14.8 million cubic metres of Russian logs (up by 2700% compared to that in 1996) a year-on-year increase of 69% and accounting for 80% of the increase in total log in 2002.

The proportion of Russian log imports to China's total logs imports increased by 61%, and imports surged ahead of those from Malaysia (2.1 million cubic metres) and New Zealand (1.6 million cubic metres) which are now ranked second and third respectively.

There many reasons for the increase in Russian timber, both internal and external.
Driven by rapid economic development, China's demand for timber for construction, home interior decoration and improvement has been growing rapidly. However, domestic timber supplies continue to decline due to implementation of Natural Forest Protection Program. Russian timber has been taking up the gap because. At first Russian timber was used to meet demand in the north-east, south-west and north-west areas of China. Now, Russian timber has has captured markets in most other regions of China.

The price of Russian timber is relatively low. China is linked to Russia and transportation distances are short and costs are low. Russian timber imported into China is mainly of coniferous timbers. Average CIF prices were only US$63 per cubic metre in 2002 (US$59 per cubic metre in 2001), which is much lower than that for coniferous timber from North America which is above US$100 per cubic metre in general.

Imported main Russian timber species are known to Chinese people ( Mongolian Scotch Pine, Korean Pine, White Pine and Larch) and these species are similar to those in the north-east and Inner Mongolia so are easily accepted by Chinese consumers.

The quality of Russian timber is said to be better than that of North America softwoods. Russian timber are mainly from slow grown natural forests, they are large diameter, straight and of fine quality, which is better than North America timbers from plantations.

Because improvements in internal coastal transportation, Russian timber can easily get to eastern China and southern China where economic development is fastest.

The external factors are:

First, Russia is rich in forest resources. Its total standing volume is estimated at around 80 billion cubic metres and the annual increment alone is thought to be about 970 million cubic metres. The annual allowable cut is thought to be about 550 million metres, however, annual logging volumes are thought to be only 131 million cubic metres.

Secondly, the Russian economy is recovering only slowly and domestic demand has declined sharply (annual loggings was about 400 million cubic metres during the period of former the Soviet Union). In addition the population in the forest rich Siberia and Far East regions is low and the economy in these rgions is small and growing slowly and demand is weak. Some Chinese forest industries from the north-east and Inner Mongolia areas have shifted operations to Russia.

Thirdly, because the Japanese and South Korean economies are struggling demand for timber has fallen.