Linyi and Xuzhou plywood industry struggles hard for survival

Despite increased rates of plywood, board and flush doors, the plywood industry of Xuzhou and Linyi is struggling hard for its survival.

Lack of funds, orders from clients and increased rates of raw materials including timber core veneers , formaldehyde, preservative dipping chemical, phenol and shuttering base film coated papers’ cost are believed to be the main reasons behind the struggle of this industry.

Increased rates due to short supply

The rates of poplar wood, which is used for manufacturing all types of plywood and board, have witnessed an increase of 25 per cent due to its short supply.

The rates of oversized poplar wood were rmb 800 per quintal in April  2022, but after the first and the second waves of Covid, the rates have now reached to RMB 1,000 per quintal of this size wood.

There was one major reasons behind the short supply of poplar wood and an increase in its rates. The plywood industry of Xuzhou and Linyi receives about 80 per cent supply of poplar wood from Anhui and Henan Provinces . Because of covid and transportation limitation .

They are getting orders, but most of the orders are on credit, while the orders of cash are very less. Therefore, this industry is facing a huge crunch of funds.

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