{"id":20110,"date":"2024-08-26T09:24:11","date_gmt":"2024-08-25T23:24:11","guid":{"rendered":"https:\/\/woodcentral.com.au\/?p=20110"},"modified":"2024-10-21T20:17:23","modified_gmt":"2024-10-21T10:17:23","slug":"china-is-flooding-global-markets-with-low-cost-timber-furniture","status":"publish","type":"post","link":"https:\/\/woodcentral.com.au\/china-is-flooding-global-markets-with-low-cost-timber-furniture\/","title":{"rendered":"China is Flooding Global Markets with Low-Cost Timber Furniture"},"content":{"rendered":"\n

China is exporting huge volumes of (discounted) timber furniture into global markets, with brokers trading a (near) record amount of merchandise in a desperate bid to stimulate its besieged economy. That is according to the latest data published by China Customs, which reports that export volumes surged 24% year-on-year in the first seven months of 2024, or 256 million pieces in the January to July period alone.<\/p>\n\n\n\n

It comes after Wood Central last month reported<\/a> that China now accounts for more than 40% of all furniture produced, with huge volumes of timber, plywood, and non-structural boards, including MDF, OSB, and particleboard, used to produce 452 million pieces in 2021 alone.<\/p>\n\n\n\n

Now, Wood Central can reveal that China is flooding global markets with lower-priced merchandise (slashing the price of individual items by 12% to just US $52), with the United States remaining China’s preferred destination \u2014with more than 77 million items of furniture (or 30% of total exports) shipped through America’s mega port system alone:<\/p>\n\n\n\n

“Shipments to the US rose by 20% to 77 million pieces, despite a 13% drop in the average price per piece. The total export value to the US increased by 5% to $3.9 billion,” according to the Lesproom Network<\/a>.<\/p>\n\n\n\n

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\"Distribution<\/figure>\n\n\n\n
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According to China Customs, the United States and European Union account for more than 40% of China’s trade in timber furniture, with seating, office furniture, and kitchens dominating trade. (Image Credit: Lesprom via China Customs) <\/figcaption><\/figure>\n\n\n\n

In addition to the US, China is targeting the European Union for massive growth, which has seen the Netherlands (up 74% to 12 million), France (an increase of 31%, up to 14 million), and Germany (also up 35% to 13 million) emerge as China’s fastest-growing markets.<\/p>\n\n\n\n

Beyond the US and EU, China’s top markets include the United Kingdom (up 23% to 17 million), Japan (an increase of 8% to 16 million), Canada and Australia (both up 29% and 22% to 7 million and 12 million) – still China’s largest market on a per capita basis.<\/p>\n\n\n\n

“By flooding global markets with low-cost goods (like timber furniture), China is aiming to boost its manufacturing sector, echoing the massive export surge of the early 2000s that reshaped global trade,” according to Lesproom, adding that the increased reliance on foreign demand also comes at considerable risk.<\/p>\n\n\n\n

“The US is amongst a growing number of trading partners\u00a0raising<\/a>\u00a0levies on Chinese products – this has led economists to suggest that China could benefit from shifting its focus toward stimulating domestic consumption, creating a more balanced and resilient economy\u200b.”<\/p><\/blockquote><\/figure>\n\n\n\n

China’s export strategy is risky business.<\/h6>\n\n\n\n

Last month, Wood Central reported that Donald Trump’s tariff plan<\/a>, which could see a 60% tariff placed on all Chinese imports\u2014coupled with the politics of EUDR<\/a>\u2014could effectively shut out Chinese timber furniture from its two largest and most lucrative markets. <\/p>\n\n\n\n

Already, China has rejected key parts of the European Union’s EUDR, which has seen the world’s largest forest economy refuse to share geolocational data with the EU over “security concerns”. This impasse has led furniture traders (in China and across the Asia-Pacific region) to seek new alternative markets.<\/p>\n\n\n\n

\u201cWe previously exported our furniture to [countries in] Europe such as Germany, but not anymore because of more regulation,\u201d\u00a0according to Esther Cecilia, a marketing representative for\u00a0a furniture and wooden handicraft goods maker based in central Java<\/a>. \u201cNow, we focus on [the] Asian markets such as Hong Kong and Singapore because, for example, Singapore has less strict regulations than those in Europe,\u201d she said.<\/p>\n\n\n\n

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China has pushed back against the EUDR – the European Union’s signature deforestation policy, leaving up to 40% of timber furniture imports at risk. (Photo Credit: Image ID:2M4TTFX via Alamy Stock Images)<\/figcaption><\/figure>\n\n\n\n

According to China Customs, seating furniture accounts for the highest portion of shipments\u2014more than 26% of total trade or US $5.1 billion in export value. Bedroom furniture followed with 10% of the export volume, totalling 26 million pieces and US $2.2 billion in value.<\/p>\n\n\n\n

In addition, office furniture accounted for 6% of total exports, with 16 million pieces worth US $904 million traded into international markets, while kitchen furniture comprised 4%, with 9 million pieces valued at US $481 million. Other wood furniture accounted for 54% of total exports, translating to 138 million pieces worth US $4.7 billion.\u00a0<\/p>\n\n\n\n