China Becomes World's Largest Log Importer

Beijing, China, Aug. 14, 2009--Having stripped its own country of a considerable amount of its natural forests, China has become the largest importer of logs in the world in an attempt to keep up with the 500% increase in its export of finished wood products, according to the Gerson Lehrman Group.

China's recent efforts to import an ever growing number of logs has run into roadblocks from the Russian government that levied huge export duties on their logs and the global movement against illegal logging and export.

China in particular has come under extra scrutiny by the EU and USA for its illegal trade along its northern border with Russia.   Exposure of a mafia-like black market, murders, bribes and thriving business in logs has placed a lot of pressure on China to exercise more control in this region.
 
However, the slowdown in the world economy has had little impact on the growing global demand for China to continue supplying finished products.  Chinese exports are down considerably but demand is still very strong, leading to the shortage.  It will become much worse as the economy improves.
 
Gerson Lehrman said that with the passage of the 2008 the American Lacey Act Amendments and similar legislation in Europe, buyers are taking care to make sure their products were legally harvested based on the local laws of the country in which they were harvested.

Lehrman said companies like Armstrong World Industries and Mannington are committed to supplying only FSC certified wood flooring.  Others in the floor covering industry are just learning of these new regulations and will quickly join the National Wood Flooring Association's (NWFA) Responsible Procurement Program (RPP).
 
While these regulations may appear on the surface to limit the use of hardwood use, it will actually exacerbate the shortages by funneling all buyers to the same certified legal sources.

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