Heightened environmental awareness and conservation efforts are putting the squeeze on China exporters of various wood-based building materials already facing rising costs and a shortage in supply.

Customs statistics for January to March 2008 show export volume dropping nearly 13 percent from the last quarter of 2007 even as the average per-unit value decreased by 2 percent. Revenue from outbound shipments exceeded $1.2 billion in Q1 2008, down 14 percent from the previous three-month period.

According to customs figures, North America, Asia and the EU are the primary export markets for wood-based building materials from China, accounting for 80 percent of shipments. The US is the single-biggest importer, averaging more than $130 million worth of products monthly in 2007.

The tight supply of various types of hardwood has forced several companies to close down or shift to other product lines. This narrowing of the manufacturing base is expected to continue in the years ahead, with the number of active makers decreasing to about 500 by 2010.

To cope with the shortage, companies are turning to alternative sources of materials such as South America where some are investing in plantations.