Affected by factors such as the increase in raw materials and labor costs and national macro-control, the trend of China's timber price index is on the rise in 2017 as a whole. The increase in the log market was relatively high, the wood-based panel market was relatively stable, and the sawn timber market declined slightly.
Analysis of the Causes of the Fluctuation of Domestic Wood Price Index in 2017
Environmental supervision upgrade
If 2015 is the starting year for environmental protection policy pressure, and 2016 is a high-pressure year for environmental protection policies, then 2017 is the year of environmental protection reform. The “National Environmental Monitoring Site Deployment Plan for Soil Environmental Monitoringâ€, “The 13th Five-Year Plan for Soil Environmental Monitoring,†and “The Work Plan for Prevention and Control of Air Pollution in Beijing, Tianjin, Hebei and Neighboring Regions†were successively introduced; coal to gas, coal reform The accelerating advancement of electric power and the call to “win the battle to defend against the blue sky†raised the long-lasting environmental protection storm in 2017 and covered various provinces across the country. Many wood companies stopped production and were even shut down. Many small and medium-sized furniture companies will face the crisis of shortage of raw materials and slow sales of products, which will eventually trigger the closure of small and medium enterprises.
Supply gap expansion
The timber industry was severely supervised and suppressed. The market slowed down. Although the wood price has declined, some wood prices have risen due to the suspension of production of the processing plant and the supply of the market has fallen short of demand. For example, in North America, the increase in environmental protection turmoil in August. With the increase in import costs of Jiasong, the volume of goods and stocks are also limited, and if the supply falls short of demand, it will show price increases. The recent increase in the price of domestic and foreign timber has been basically stable, the market is better, and there are still rising situation. In addition, the prices of rubber wood and Scotch pine have soared, and they have only recently become stable.
Series cost increase
Labor costs are increasing. Most of the wood factories have traditional production methods. They have poor working conditions. They compare male and female physical labor, and they lack the sense of belonging after the 90s. They are relatively free and frequently change jobs. The factory has to expand many channels to recruit workers, increase wages, and improve production and living. Environmental methods, etc., attract workers, all of which lead to higher costs and reduce corporate profits. There is also an increase in transportation costs. Since the second half of 2016, there has been an upward trend in the use of ship freight, and more European shipping companies have announced that they will continue to raise prices, and import timber dealers cannot afford it. At the end of the year, freight rates such as railways and shipping containers also formally increased. It is estimated that the price adjustment will be between 5% and 8%. The log prices of overseas suppliers also continued to rise.
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