I refer to your plywood and OSB market report (TTJ December 11/18).
While I agree with the comments concerning price trends for Far East product, prices for Chinese bintangor-faced poplar plywood have been fairly static throughout 2004. All that has happened is that the price differential between Chinese and Far Eastern production has either widened or narrowed. It is therefore grossly unfair to blame China for the prevailing market conditions.
Chinese plywood is significantly different from Far Eastern production insofar it has a poplar core, melamine Type 1 exterior face and back and relatively thin (but high quality) face and back veneers. As a consequence, a realistic differential between the two productions is justified.
With regard to anti-dumping duty being extended to all Chinese plywood, the purpose of applying anti-dumping duty on okoumé-faced (and okoumé throughout) plywood is supposedly to protect the European plywood manufacturing industries whereas China’s new production of bintangor-faced poplar plywood does not compete with EU production. Furthermore, realwood veneered fancy plywood originating from China is a perfectly innocent product originating from a small number of mills that produce excellent quality. Certainly this product should not be a target for extended anti-dumping duty.
There are over 6,000 plywood factories in China, most producing just 4-5,00m3 per month. However, there are also some large hi-tech factories capable of producing up to 15,000m3 per month. It is essential to work closely with these reputable factories that can make a quality suitable for the UK. We have been selling Chinese production for the past three years and, while there were teething problems, we are now fortunate enough to have a reputable and reliable portfolio of Chinese shippers. All the mills we represent have CE certification – a testament to their good management and commitment to the UK/EU markets.
Chinese plywood has suffered unfair criticism but in its favour it must be remembered that Chinese bintangor-faced poplar plywood is an environmentally friendly product containing a high proportion of plantation poplar core veneers. It is generally multi-ply construction, bintangor face and back veneers are a consistent light red and, with a large proportion shipped by containers, the voyage time from China is just four to five weeks and the containers can be shipped to several UK ports.
Chinese plywoods should not all be tarred with the same brush and commentators who criticise it should try the production of the more reputable mills to see how good the quality and service really are.
Christopher Williams
Managing director
Panda Panel Agencies Ltd
