The export volume and value of wood furniture, doors, and wood based panels have all seen sizable increases in 2014.

However, the cost of raw materials, labour and energy were all increasing. In addition, with more and more awareness of the air-pollution issue, the Chinese government has now made new regulations on environmental issues.

For example, in Linyi city where the most concentrated areas for plywood production and exports are, all plywood mills must upgrade their boiler systems to use cleaner coal, or transfer to other environmental energy options, such as solar, natural gas or electricity to replace coal.

China’s wood products and furniture manufacturers are facing major challenges with higher and higher costs in the coming years. www.woodmarkets.com