China’s Wood-based Panel Market Interpretation in the First Half of 2023

National Forestry and Grassland Administration Industrial Development Planning Institute (Forest product Industry Planning and Design Institute) and China National Forest Product Industry Association monitoring data show that in the first half of 2023, China’s plywood and fiberboard industry showed a decline in the number of enterprises and a contraction in the total production capacity, while the particleboard industry showed a decline in the number of enterprises and a rapid growth in the total production capacity.

At the end of June 2023, there were more than 9,800 plywood product manufacturers in the country, distributed in 28 provinces and municipalities, nearly 1,000 fewer than at the end of 2022; The total production capacity is about 205 million cubic meters per year, a further reduction of 1.4% from the end of 2022. The plywood industry showed a double decline in the number of enterprises and the total production capacity.

In the first half of 2023, two fiberboard production lines (both continuous flat-pressed lines) were built and put into operation nationwide, with an additional production capacity of 360,000 cubic meters/year. At the end of June, 287 fiberboard production enterprises in China had 321 fiberboard production lines, distributed in 23 provinces and municipalities, with a total production capacity of 46.93 million cubic meters/year, a net reduction of 850,000 cubic meters/year, down 1.8% on the basis of the end of 2022, including 134 continuous flat pressing lines, with a total production capacity of 29.68 million cubic meters/year. The proportion of total production capacity rose to 63.2%. The fiberboard industry showed a further decline in the number of enterprises, the number of production lines and the total production capacity.

In the first half of 2023, 14 particle board production lines (including 6 continuous flat pressing lines) were built and put into operation nationwide, with an additional production capacity of 2.91 million cubic meters/year. At the end of June, the country’s 290 particleboard production enterprises have 306 particleboard production lines, distributed in 22 provinces and regions, with a total production capacity of 43.75 million cubic meters/year, a net increase of 2.27 million cubic meters/year, an increase of 5.5% on the basis of the end of 2022, of which 98 continuous flat pressing lines, a total production capacity of 26.25 million cubic meters/year. The proportion of total production capacity further increased to 60.0%. Particleboard industry showed a further decline in the number of enterprises and production lines, and the total production capacity continued to rise. There are 53 particleboard production lines under construction in the country, with a total production capacity of 17.64 million cubic meters/year, and the risk of overheating investment in the particleboard industry increases.