Plywood trade in China interrupted by domestic environmental controls

EU importers had reported that Chinese plywood supply are affected by tough new national environmental requirements, forcing mills to interrupt production to enhance or replace emission and waste treatment technology. Prices are also reported to have increase by 10 per cent in the last six months.

one importer/distributor said that inspectors have been checking on their Chinese supplier mills for months, so productions were stopped frequently recently as they upgrade their systems. Mills in Linyi and Pizhou were also affected more recently.

Disruptions also increased in Qingdao as some authorities move to improve the local environment for the Shanghai Cooperation Organisation meeting in June, another leading EU importer said.

Some European traders reasoned that an important reason for the pollution crackdown is to make allowance for strengthening the plywood industry by forcing smaller businesses to close.

But another European importer/distributor argued that they visit regularly and were convinced there is genuine desire to cut down on the industry’s environmental carbon impact and help meet climate change targets.