Logging in China Industry Research Report – Available Now from IBISWorld
San Francisco, CA (PRWEB) July 28, 2013 -- As a rapidly growing economy, China has been facing the conflict of strong demand for wood materials and domestic scarcity of forest resources, says IBISWorld. Real estate industries, infrastructure construction and furniture manufacturing industries are currently the major end consumers of logs, wood and timber. For this, the Logging industry in China relies considerably on imports.
The Chinese Logging industry experienced volatile growth in the five years to 2013, with annualized revenue increases of 7.8%. After strong growth in 2007, the subprime mortgage crisis in the United States and global economic uncertainty in 2008 led to a considerable drop in China's log demand and declining log prices in global markets. The downward trend continued in 2009, causing industry revenue to fall further. However, the economic recovery in 2010 and 2011 greatly boosted log demand and product prices, leading to strong industry revenue growth. Industry revenue experienced lower growth of 3.5% in 2012 due to the economic slowdown in China. A recovery is expected in 2013 with industry revenue growing to $14.7 billion. Imports are expected to satisfy over a third of domestic demand.
This industry has a low level of concentration because most firms that sell logs to sawmills are small companies with very limited market share. IBISWorld estimates that in 2013, less than 15.0% of the national market is controlled by the top four producers: China Longjiang Forest Industry (Group) General Corporation, China Inner Mongolia Forestry Industry Group, Greater Higgnan Mountains Forestry Group, and China Jilin Forestry Industry Group. This low concentration level is partly the result of the fragmented distribution of forestland available for logging; few logging companies invest in operations in more than one or two provinces due to the large distances involved in transportation.
Over the next five years, a significant driver of growth will be higher log prices. In addition, log output is projected to expand quickly as a large amount of fast-growing forest becomes available.
For more information, visit IBISWorld’s Logging in China industry report page.
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IBISWorld Industry Report Key Topics
The Logging industry in China purchases and leases harvesting equipment and machinery from relevant service providers and uses them to fell trees. Simple further processing procedures such as tree delimbing, topping and bucking are also included in this industry. The industry does not plant or grow trees, nor does it manage the forests from which logs are derived.
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Globalization & Trade
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Gavin Smith, IBISWorld, 310 866 5042, [email protected]
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