Grasping the development of the timber industry 

Grasping the development of the timber industry
After the Spring Festival, the timber industry ushered in great development, prices have been rising all the way, and even some wood prices have approached historical highs and are expected to create new records. For the future development of the timber industry, it is necessary to grasp three key points so that it can occupy an advantageous position in the market. The

Market demand

The first key point is market demand. According to the recent trend of the timber market, the market demand has increased significantly. In some aspects, there has even been a gap in the supply of timber, leading to a shortage of supply. For the domestic market, since wood-based panels, furniture, and other products use wood as a raw material, the demand for wood is increasing due to the increased market demand for wood products, especially the expansion of overseas markets. The

According to statistics, a total of more than 100 countries in the Americas, Asia, Europe and Africa import wood products from China. It can be said that the market demand is very strong, which makes the market demand for wood continue to increase. With the continuous improvement of life, furniture customization has become a new thing, which has given rise to another major category of demand for the timber industry. Therefore, the continuous increase in market demand has become the key to promoting the future development of the timber industry. The

Increased timber imports

The second key point is the continuous increase in timber imports. China’s wood products are welcomed by many countries in the world and exported to more than 100 countries and regions. However, in recent years, China has also paid more attention to the issue of environmental protection. In some forest areas and wetlands, logging bans have gradually been implemented, especially for some protective forest areas, and commercial logging is prohibited. As domestic wood production has shown a downward trend, the market demand has not been met. In such cases, it is necessary to import timber from abroad.

According to the 2016-2021 timber industry market demand and investment report, China’s timber harvesting rate is gradually slowing, and the dependence on foreign timber is continuously increasing. The timber import volume has accounted for more than 10% of the total global timber import volume. For the development of the timber industry, it is necessary to pay attention to this aspect of timber imports and make arrangements in advance in order to deal with future development. The

Rising raw material prices

The third key point is the increase in the price of raw materials. From China’s domestic actual situation, because of environmental protection policies are constantly upgrading, which has brought certain pressure on the development of China’s timber industry, coupled with the progress in the supply of raw materials, which makes raw material prices continue to rise. The prices of all types of wood after the Spring Festival are rising, which also confirms this point. The

In the whole year of 2017, the timber price index is an overall upward trend. In particular, the market price of logs has increased significantly, and the prices of wood-based panels have remained relatively stable. As for logs, both the Log Composite Index and the Guangzhou Fish Ball Log Index have achieved different degrees of increase. In 2018, raw wood prices are expected to increase further due to various factors. Therefore, under such circumstances, the timber industry needs to respond to the problem of rising prices in advance. The

Under the influence of three factors, namely, increasing market demand, increasing timber imports, and rising raw material prices, grasping the future development of the timber industry needs to closely link these three key points. These three aspects seem very simple, and in fact there are inextricable internal links between them, and they cannot be divided and treated differently. Instead, these three aspects should be considered together as a whole. The

In response, industry insiders pointed out that due to the shortage of wood supply and increasing market demand, efforts should be made to study the recycling of wood. Artificial wood can be used to replace the wood produced by fast-growing forests or industrial raw materials. The ability of wood to be self-sufficient can ensure that the key to the development of timber is also vital. The

The wood industry is now erupting in explosive development, but in the case of a good situation, it is more necessary to pay attention to the three key points mentioned above, and to seize these three key points in order to promote the better development of the timber industry.

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