Particle Board Chipboard Removed From China High Pollution Product List

According to Ministry of Environmental Protection of China wood based panels complying to standards are no longer listed in the high pollution product list. This is an encouraging news for all Chinese manufacturers of particle board, mdf and plywood.

The ministry issued a new list of high pollution product recently. Compared with the 2014 year version, all wood based panel produced under the standard GB/T11718-2009(MDF Board) and HJ571-2010 (Particle board and plywood) are considered enviromental products.

On June 12th 2015, the Mistry of Finance and Tax announced the tax refund of wood panels are reduced to 70% because of its compact on the air. Now in 2016 the annoucement is revoked and wood panels industry will keep benefiting from the previous policy.

In the draft of Enviroment Protection List 2015 Version, China Forest Association has been working with business and goverment to get particle board, mdf and plywood removed from the list. According to its Secretary General Mr. Shi Feng, this result is a great success of its hard job in 2015. Mr. Shi hopes all its offices in China should deliver the message to local goverment and companies to make sure the industry has its benefit in tax.

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Mr. Shi Feng said, the revision of the list is based on the improvement of Chinese wood based panel industry. As long as the manufacturers follow the product standards in law and purchase high quality materials including wood dust and glue, the product will be 100% safe to customers. The next step of his work will be working with concerning departments to enfore the new policy on formaldehyde emission restrictions of interior decoration materials.

At the same time, China National Forest Product Industry Association(CNFPI) will promote self control and industry improvement and encourage the manufacturers to follow higher standards.

The Water Proof Chipboard With Melamine

The chipboard with melamine laminated boards are made of plain particle board, covered with decorative laminates of melamine that provide vivid look and wear resistance. Usually used in the manufacture of home furniture, Office, or for hospital and commercial installations.

Melamine Faced Chipboard For Furniture
Melamine Faced Chipboard For Furniture

Being a non-porous surface, the particle board with melamine face are easy to clean and particularly suitable for environments highly sanitized. They are resistant to heat and household cleaning products so prevent the growth of microorganisms on the surface.

The cutting of particle board with melamine laminated wood saws must be made with sharp material with fast speed, avoiding the vibrations of the machine so that no damage is made to the edges. The installation is quick and cheap, which affects the final price, and the design possibilities are endless. The chipboard laminated with melamine is resistant to abrasion but are not recommended for indoor cooking or for direct exposure to sunlight.

Best Choice For Commercial Furnitures

Melamine faced chipboard are okay for household decoration and furniture but it is the most popular for making commercial furniture. The occassions can be office, hospital, various types of shops and so on. White melamine particle board is popular for office tables.

North American Particleboard and MDF Forecast Summary

We expect non-structural panel(particle board and mdf board) consumption will grow through 2016 given that all of the end-use drivers of consumption have been forecased to rise over the next two years. Market growth of chipboard is projected to continue to trend upward as the world housing recovery strenghens in 2015. Other demand indicators such as panel furniture production and home improvements will reflect the spending on items such as furniture and remodeling projects.

Particleboard Consumption

Particleboard consumption is predicted to grow over the forecast due the expected growth in furniture produciton and residential construction. Although the consumption of chipboard is headed in a posititve direction, it should be noted that demand will remain low compared with historical peaks.
  • US particleboard consumption is expected to grow further in the year of 2015, with an growth rate 7.5% year-over-year.
  • A strong housing market with increasing furniture sales will help push U.S. particle board market higher in this year. For the year of 2015, RISI forecasts US particle board consumption will grow 9.7% to 3.29 BSF.
  • Growth in US chipboard consumption will accelerate in 2016.
  • Risks to forecast are concretrated on the pace of housing industry recovery and the mix of products manufactured at US furniture factories.

MDF Consumption

MDF consumption growth will keep same with the chipboard in 2015 and 2016 but has a higher exposure to house construction nad less reliance on furniture industry. So far the MDF consumption has been restrained by the high value of US dollar in a deterioration of the MDF trade balance.

Global particleboard market to boom by 2017

The recovery in U.S. housing construction, an expanding global furniture industry, and strong growth in housing construction in fast developing countries in Eastern Europe and Russia will lead to a boom in particleboard production by 2017.

According to Australian industry analyst BIS Shrapnel’s latest Particleboard in the Pacific Rim and Europe 2013-2017 report, Europe is still struggling to return to growth following the global financial and economic crisis – will be the main beneficiary of the boom, with exports set to more than double during the forecast period as chipboard production expands in Belarus, Bulgaria, Hungary, Latvia, and Russia. But the report warns that price growth may be limited as consumption is forecast to significantly lag behind production, unless non-producing regions increase their demand.

Particleboard and melamine chipboard is used mainly for furniture and cabinet manufacturing in most countries. In 2012, particleboard used for furniture and cabinet making ranged from a low of 18 per cent to 20 per cent of total particleboard consumption in Australasia and South Africa, to a high of 70 per cent to 80 per cent in China, India, Malaysia, Vietnam and South American countries. Western Europe (excluding Russia and Turkey) remains the most important particleboard producing area, accounting for 38.9 per cent of the world’s production in 2012. This will increase slightly by 2017. Based on forecasts, Europe, including countries such as Belarus, Bulgaria, Hungary and Latvia, will produce 34.8 million cubic metres, accounting for 39.3 per cent of global production. The greater European region, including Russia and Turkey, is by far the largest producing region with 53.4 per cent of the world’s production in 2012. This will increase to 53.9 per cent by 2017.

“The economic crisis hasn’t ceased for Western Europe, and in 2012 it was the only region with a GDP growth close to zero,” said Bernie Neufeld. “However, if there is one industry that has remained stable in the greater European region, it’s the particleboard production industry – and times are only expected to get better over the forecast period. “Net exports from Europe (excluding Russia and Turkey) are projected to increase substantially over the forecast period, from 2.3 million cubic metres in 2012 to 5.6 million cubic metres in 2017. With prices also expected to increase over the forecast period it’s a good time to be in the particleboard industry in Europe, and you can’t say that about too many industries in europe.”

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Housing construction began to recover in 2010 in the United States, and is well on the way to much stronger growth over the next five years. “This recovery will drive economic growth not only locally but in many of its key trading partners around the world,” said Neufeld. “It will also drive renewed demand for furniture, and ultimately the demand for particleboard. Housing construction in other key regions such as South America and Asia will also drive demand.” Production of particleboard by major producing countries is projected to increase from 73.6 million cubic metres in 2012 to 88.6 million cubic metres in 2017, based on current expansion plans and estimated capacity utilisation rates. Consumption in the major producing countries is projected to increase from 72.2 million cubic metres in 2012 to 84.8 million cubic metres in 2017. “Given the projected increase in production to 88.6 million cubic metres over the same period, consumption in non-producing countries and regions such as the Middle East, Africa, and other South American countries will need to be in the order of 3.8 million cubic metres by the end of the forecast period for a surplus to be avoided,” said Neufeld. “Therefore, price increases will be constrained somewhat by the expected surplus in supply.” Particleboard prices are projected to increase by five per cent in 2014 and six per cent in 2015, as global economies strengthen. Slower growth is projected for 2016 and 2017 in response to the next cyclical downturn.