The timber market in Feixian/Linyi was bleak, with 80% of timber enterprises losing money in the first half of the year.

The timber market in Feixian/Linyi was bleak, with 80% of timber enterprises losing money in the first half of the year.

Since the first half of the year, the stock of timber has increased sharply. The stock of Taicang area in Jiangsu Province alone is more than 2 million cubic meters. Since the beginning of the year, the whole market has been selling at an upside-down loss because of oversupply of supply and demand. At the same time, in order to withdraw funds earlier. The whole timber market has created a vicious circle. Buying up and not buying down. Most timber dealers have almost zero stock status. They sell now, which makes the flow of timber slower.

So looking at the overall timber market in China, what is the cause of such a bleak, 80% of the results of corporate losses, and what ways can avoid losses and reduce losses as much as possible? First of all, it is an indisputable fact that the supply of timber market exceeds the demand. The most fundamental reasons are as follows:

1. While the amount of construction projects for real estate development in China has been greatly reduced, most large-scale housing enterprises standardize the use of recyclable alternative materials, such as square steel and steel pipes, to replace traditional timber.

Two, along the way to accelerate access to China, a large number of subsidies directly to the source. At present, Russia has entered the Ningxia special train area along the way, Shizuishan, Gansu, Lanzhou, Wuwei, Qinghai, Xining, Shaanxi, Xi’an, Sichuan Sichuan, Sichuan,

3. Import Germany, Ukraine plate flooded, a large number of low-priced plate with containers and bulk shipping to China.

Fourth, there is no sign that the production capacity of domestic wood processing enterprises has decreased, or even is increasing, but the start-up rate has declined. At present, Tianjin, Hebei Caofeidian, Shandong Dong Jiakou, Qingdao Jiaozhou, Rizhao, Linyi, Weifang; Jiangsu Dafeng Port, Jiangyin, Nantong Rugao, Changshu Port, Taicang Port; Jiangxi Jiujiang, Fujian Putian, Guangdong Dongguan, Hainan Danzhou, Guangxi Qinzhou, Chongqing Jiulongpo. The saturation of wood processing enterprises is unprecedented in history!

Fifth, the assembly building is in full swing.

June and July are the traditional off-season. Rainfall weather is frequent, while the high temperature weather continues. The progress of the project is extremely slow!

The above six “mountains” are cruelly pressing on the timber people, making people breathless. Then how can we reduce losses and avoid losses? Suggestions: when the supply of goods is sufficient, it is not only a crisis, but also an opportunity to strengthen friendly cooperation before peers, resource sharing, mutual help, timely communication of information, through good friends. Widening sales channels, reducing information asymmetry, and selling timber to customers in need.

At the same time, cash is king, to avoid excessive leverage to copy the bottom, after all, no one can see whether the ceiling or floor, careful use of leverage can make you more flexible, easy to move forward and backward, in a difficult market, not losing money is a kind of money!

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