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What is the future of timber industry in the post epidemic era?

Release date: 13:14, March 1, 2021     Source: unknown     Author: admin     Click:

The sudden outbreak of the epidemic in 2020 has disrupted the pattern of the whole society, which is both a challenge and an opportunity. As a practitioner of the wood industry, the author discusses with you the wood industry under the epidemic situation.

The arrival of the epidemic situation during the Spring Festival in 2020 caught everyone by surprise, and the timber industry was also greatly affected. Factories and construction sites were shut down, and timber was unsalable. We all thought that the market situation would be very bad this year. However, with the gradual control of the domestic epidemic situation and the gradual start-up of construction sites and factories, the market situation in April was better than that in previous years. The price of construction materials on the construction site was basically one price a day. From April to June, it has increased by about 300 yuan per cubic meter compared with the previous year. At the end of 19 years, the boss who has goods in hand has basically earned the profits of the previous year. However, the furniture industry is relatively stable. After all, the whole industry chain is much longer than the construction site. Due to the impact of the epidemic, consumers at the end of the market are not interested in buying furniture, and their income is declining, and their consumption is shifting to low-end wood-based panels. Thanks to the relatively stable prices of raw materials, the shutdown of foreign factories caused by the epidemic situation abroad, and the increase of export business of furniture factories, the benefits of 2020 will not drop much compared with the previous year, and some of the more powerful factories have a positive growth. However, the domestic furniture factories without foreign trade business have been relatively depressed. Some factories have been suffering from a decline in efficiency in recent years. In addition, the epidemic situation has worsened, and some owners have to change their careers and seek other ways out.

In the second half of 2020, the epidemic situation in foreign countries was out of control, and the timber of various timber species began to rise sharply, which made many traders feel unprepared. Especially Russian pine, in December, due to the outbreak of the Russian epidemic, Russia greatly reduced the number of trains entering China, and the timber was piled up at Russian ports, resulting in a sharp reduction in the number of timber entering China. The price of pine wood is like a rocket, one price a day, and various specifications of wood are still out of stock. In addition, the epidemic situation in the United States, Canada and Europe has recurred in an all-round way, with shipping containers piling up in ports and the panel factories shutting down, resulting in a complete imbalance between supply and demand, leading to an overall rise in domestic timber prices in 2021.

2021 is supposed to be the most difficult year for wood related practitioners, and furniture factories are the most uncomfortable side in the middle. Facing the rising price of raw materials, the price of terminal products is difficult to rise in the current fierce competition environment, so we can only reduce our own profits. Of course, in the long run, the impact will continue, and prices will continue to rise in April at least, and eventually it will be transmitted to terminal consumers. Therefore, in the first half of the year, it is recommended that consumers who use wood should buy it as soon as possible. Furniture factories should also store more goods.

Finally, the post epidemic era of China in 2021 is the biggest shuffle period in recent years for the timber industry, which tests the wisdom of all practitioners. It's not only a bumpy but also an opportunity. I hope everyone can cross this hurdle and find new opportunities!

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