Since the beginning of this year, the price of wood has been rising, which has caused furniture manufacturers to suffer. The fierce market competition makes it difficult for manufacturers to arbitrarily raise prices, and the rising cost has caused enterprises to fall into a situation of falling profits and even losses. The industry believes that the trend of rising timber prices is difficult to change in the short term, and furniture prices have risen all the time. The arrow is on the string.
Timber price rises and wrinkles a pool of spring water
The price increase of this timber is national, and there is a phenomenon of “having money and not buying wood†in the major provinces of furniture production and export. Many industry veterans believe that at the end of this year, timber will maintain the trend of price increases, and the pressure on furniture prices will increase. The price war in the past will be rare.
According to industry insiders, the price of timber in China has generally risen due to a number of factors this year. In the past few months, China’s demand for wood has continued to grow. In particular, the world is protecting the ecological environment, prohibiting illegal logging, resulting in a sharp decline in timber production and tight supply in the timber market. It also reduced the overall amount of wood felled. The upstream raw material processing enterprises have experienced obvious under-employment, which has driven the increase in the price of timber in China.
Production of raw materials mainly rely on wood flooring, doors, cabinets and other production enterprises, has already sent signals before the furniture industry: due to the increase in production costs, the price of products began to increase. According to statistics, only the price of flooring products has soared by 20% recently.
Imported plates are also rising
At present, the local furniture companies use the largest amount of raw materials such as MDF and particleboard, and they are mainly made from domestic products. With the tight supply of domestic raw materials, furniture manufacturers already have the intention to import plates. However, news from the international market shows that imported plates are also rising.
It is understood that in addition to the state's increased control, the production and transportation costs of timber companies have increased by go2map. Another important reason for the price increase of timber is the sharp decline in the export volume of timber after the tsunami in China's traditional timber importing country. Countries such as Thailand, Malaysia, Myanmar and Indonesia are the main suppliers of timber imported from China, especially Indonesia, which was ranked among the top three suppliers of timber in China by 2003. Most of these countries are victims of the tsunami. The damage to houses is quite serious and the economy is affected to some extent. Since the reconstruction requires a lot of wood after the disaster, the export volume of wood will be affected. The tsunami also caused damage to the port and stagnation of maritime transportation, resulting in tight transportation capacity, rising freight rates, and the stock of raw materials such as plates may be out of stock or out of stock. On the other hand, the reconstruction of the affected countries will involve a large amount of labor, and labor costs will also rise. Therefore, the impact of the tsunami in Southeast Asia on the price of imported timber in China is considerable.
According to professional estimates, this year's imports of Indonesian timber will be reduced by 600,000 cubic meters, and Papua New Guinea will be reduced by 800,000 to 1 million cubic meters. At the end of last month, the number of hardwoods imported from waterways has decreased significantly this year. Indonesian timber is basically out of stock, and African timber imports are also significantly reduced, while prices are on average 15% to 18% higher than before the Spring Festival.
Raw materials are unwilling to lag behind
At the same time, with the large price increase of various main materials such as plates, all kinds of raw and auxiliary materials are not far behind, the price closely follows the building materials market, and the prices of major raw materials for furniture such as paints, adhesives and hardware are also from the end of last year. The acceleration of the rise, coupled with the rising cost of electricity and freight, has caused a significant increase in the cost of furniture production.
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