According to the concrete characteristics of timber supply and demand in China, a grey forecasting model is selected, and a set of GM(1, 1 ) models are built for China’s timber production, import, export, saving and substitution, supply and demand. Then dynamic forecasts are made till2010. On these grounds, the problems of China’s timber supply and demand are analysed and theircountermeasures are suggested. Results show that the grey forecasting model not only ensures the forecasting precision demand but also complies better with practical situation.