Further price hikes were under discussion on the market for Chinese plywood. Analysts expected prices for all plywood ranges to be raised by up to 5% over the next few months, starting early 2007. The new price increases were intended to offset rising costs of upstream products and the upcoming reduction in export subsidies in China. Chinese plywood suppliers wanted to pass on the rising resin, film, and veneer prices as well as the reduction in export subsidies from 13% to 11% to export prices. Meanwhile, Chinese poplar-pine plywood had been recently affected by declining prices for Brazilian Elliotis Pine plywood. Chinese suppliers had been forced to lower slightly sales prices to remain competitive. (Source: IHB)