Rising price trend of log timber and flooring market development

After experiencing the turbulent turmoil of the financial tsunami and shuffling, the wood-based panel and the long-lost 'ups' in March 2010, prices of plywood, MDF, chipboard, and finger-joint panels began to turn upward. After the price of wood rose steadily, the prices of wood-based panels surged, and prices of a few species hit record highs.
In terms of log plates, the price of wood has been soaring since 2011 due to rising freight, labor, and raw material prices. Whether it is rare rosewood or common wood species, there have been different degrees of increase. For example, Dalbergia sorbifolia, selected in March 2010, is expected to cost 4000-8000 yuan/kg, and the price has reached 9,000 yuan to 11,000 yuan/kg by September; another example is Vietnam pear, driven by the investment boom, Vietnam Huanghuali The price rose. At the beginning of 2010, the general material of Vietnam pear was reported to more than 300,000 yuan/ton. By May, Vietnam's pear was reportedly worth 500,000 yuan/ton. After October, the quotation was more than 700,000 yuan/ton. In addition, the prices of common wood species such as bahua and rubber wood also rose rapidly. For example, at the beginning of the year, the price of Pahua plate was reported to be around 12,000 yuan/cubic meter, and by October it had reached 15,000 yuan/cubic meter; the price of rubber wood was more than 500 yuan/cubic meter higher than that at the beginning of the year.

However, due to the tightening of domestic forest resources, the impact on the wood-based panel market has been significant. For example, in the first quarter of 2011, serious droughts occurred in five provinces and regions including Yunnan, Guangxi, Chongqing, Sichuan, and Guizhou. Forest fires occurred frequently and a large number of pests and diseases were introduced, seriously affecting the normal supply of raw materials such as wood-based panels. In the fourth quarter, China experienced a large amount of rain and snow weather. The adverse weather affected the exploitation of logs and stimulated a substantial increase in raw material prices. Affected by the increase in raw material prices, the production of wood-based panel makers began to be abnormal in May 2011.

On the floor, due to the increase in the price of floor blanks, the floor market situation in 2011 was not gratifying, but the price of the products turned down in disguise, and profits were continuously compressed. The main reason is that under the strict control policy of the national property market, many consumers are in a wait-and-see attitude. As the floor market with the strongest dependence on the real estate industry, the overall sales volume in 2010 showed a declining trend, and the price of floor blanks is constantly increasing. Promote. In the downturn of the market, businesses are afraid to increase the floor price, so the profit of the floor is further compressed, and the business pressure is greater. Looking ahead to the trend of the timber market in 2011, in Hongmu, although the country will continue to implement the property market regulation policy in 2011, the impact on mahogany furniture is slight. On the contrary, under such a strong policy, the mahogany furniture market will be a kind of Push effect. The main reason is that investors can withdraw funds from real estate investment and they are expected to switch to 'blue-chip furniture' of 'blue-chip stocks'. Therefore, in 2011 for Hongmu, the market may continue to rise.

In addition, the demand for wood in the Chinese market is huge in 2011, and since more than 40% of the timber market in China is imported, the import of wood in China will continue to increase in 2011. Among them, regions rich in forest resources such as Russia, Africa, and South America will continue to be the main targets of China's timber imports. Under the low-carbon economy, wood-based panels are the main way to solve the conflict between the strengthening of forest resources protection under the global warming environment and the shortage of wood supply and demand growth. It can be said that the wood-based panel industry is facing a new round of economic cycle. In the future, with the increase in residents' spending power, the change in consumer attitudes and the implementation of natural forest protection projects, the demand for wood-based panels in various industries such as decoration, furniture, packaging, shipbuilding, and automobiles will usher in a new peak of growth.