Timber price “falls unceasingly”, the epidemic period is stable, seeks the survival is the key!

Timber price “falls unceasingly”, the epidemic period is stable, seeks the survival is the key!

According to the log importers we visited, today’s wood prices have maintained a downward trend, with a large-scale and small-scale reduction again. The price of radial pine and white pine in Jiangsu Province has dropped by 20 yuan / m3; In Shandong Province, Panax radiata dropped 30 yuan / m3, hemlock and white pine dropped 20 yuan / m3; In Chongqing, Panasonic fell 20 yuan / m3; In Tianjin, Hebei Province, Pinus thunbergii decreased by 10 yuan / m3, while in Guangdong Province, Pinus radiata decreased by 50 yuan / m3, and spruce decreased by 20 yuan / m3.

Timber prices fluctuate under the influence of supply and demand. Normally speaking, the fluctuation range is small and the whole is relatively stable. However, due to the impact of the epidemic and the instability of the global economic environment, the price of timber has been rising all the way this year, doubling compared with the same period last year, and the international ocean freight has also tripled, and the overall cost has increased by one-third to one-half. By the end of May, the price of timber had turned sharply downward, the wind direction had changed suddenly, and the price of timber began to rise. The scene of sharp rise and fall is staged again in the wood industry.

At the beginning of the price rise, facing the rise of raw materials and exchange rate fluctuations, the processing plant will try its best to compress profits and stabilize prices to obtain orders. However, with the soaring cost, those enterprises that only seek but not lose have no space to bear. Therefore, only how much raw materials, RMB and sea freight increase can be directly transmitted to downstream customers. In the end, the lower reaches were unable to bear the burden, and the middle reaches gave up the struggle, so that now we are watching the timber price “fall endlessly”.

Now the goal of many timber enterprises is to survive without loss. The timber market is changing rapidly. It can be seen from the timber market in recent two years that the sharp rise and fall is not a joke. Every change affects the fate of many timber enterprises. For such a market, timber people can only follow the trend, respect the market rules, calm their mind, refuse to follow the trend of speculation, and blindly stock up. It is the key to survive in the post epidemic period!

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