As affected by global financial crisis, fiber board market is facing severe challenge for both export and domestic sale. The MDF market shrank about 60-70%. The total storage sharply increased and overstocked, so most MDF enterprises decided to promote by reducing price. For example, the price of sanded board (E1, 3 cm) of a big enterprise reduced to RMB19/piece from RMB24/piece, down 20.8%. Some enterprises promote by cut down production rather than sharp decrease of price.

Someone said the MDF now entered into ¨dusk before dark〃 and it would be tougher in the future. Export enterprises turned to sell in domestic market, so competition in domestic market was fiercer. Enterprises started a price war to get clients. Small enterprises were closed one after another for lack of brand and capital. It is said that several hundred furniture enterprises in Dongguan are closed now and more enterprises will have the same destiny in March and April. Some experts forecast that traditional growth method can no longer keep pace with development. The industry will restructure and enterprise group with international competition strength will emerge in the next three to five years.

List

News Flash 1

Monthly Production of Wood Products in China 2

? I: Panel Board 2

? II: Solid Wood Flooring 3

? III: Engineered Wood Flooring 3

? IV: Wood Furniture 4

? V: Paper Pulp 4

Wood Market in China 5

? Forestry Industry Convened a Financial Storm Handling Workshop in Beijing 5

? Update for Wood Import in Erlianhaote of Inner Mongolia 6

Boards and Furniture in China 7

? Severe Challenge for MDF Industry 7

? Export of Panel Board in 2008 8

Paper and Paper Pulp in China 9

? Paper-making Industry Expects to Walk out Low Valley 9

Imp. & Exp. 10