OREANDA-NEWS. May 14, 2013. A price index for the Chinese ‘redwood’ sector, to be called the Chinese Composite Redwood Import Price Index, is to be launched soon. In the context of the new index ‘redwood’ is a general description of high value timbers such as rosewood, padauk and red sanders and others, ITTO reported.

It has been reported that the index underwent a trial in late 2012 and the results were assessed by the Redwood Distribution Special Committee (the Redwood Committee) of China Timber and Wood Product Distribution Association (CTWPDA).

This trial index was based on data provided by the Shenzhen Sunshine Redwood Plaza and Shanghai Furen Redwood Market. One of the uses of the index will be to identify the main factors affecting movement of the index. Data from China Customs on log and sawnwood import prices will be analysed to create a 2006 baseline for the index.

The index is being promoted as a tool to guide production, business and management in the ‘redwood’ sector. Currently, China’s redwood raw material is imported.

Therefore, prices of imported ‘redwood’ logs and sawnwood determine the price of ‘redwood’ products in the market. It is expected that with the launch of the ‘redwood’ price index, speculative trading can be avoided so that ‘redwood’ traders and enterprises have a means to accurately assess supply and demand conditions.