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In the first half of this year, various factors that led to the price increase of wood emerged together, driving the price of wood to rise rapidly, and the culprit was the new crown epidemic.

The sudden arrival of the epidemic disrupted the pace of all countries, stagnating consumption and the world economy down, leading to the prevalence of unilateralism and trade protectionism.

There are many main reasons for the increase in wood prices: trade barriers, exchange rate fluctuations-a large number of US currency printing, rising shipping costs (oil prices and container costs), rising wood processing costs (labor costs), reduction in wood raw material output, high risks, wood futures Unpredictable supply, reduced shipping positions, delayed replenishment...

Whether it is building materials or furniture materials, China's timber reliance on foreign imports is increasing unabated. In general, it is because the cost of wood has increased and the supply cannot keep up with the ever-increasing demand, the domestic wood prices will skyrocket.

However, judging from downstream feedback, demand has shown a downward trend in May this year. In June, due to the off-season factors such as the rainy season, the college entrance examination and busy farming, the domestic timber market demand was weak. Furthermore, the price of building materials such as steel soared, which caused the project budget to exceed the standard and the shortage of funds, which slowed down the construction progress and greatly affected the demand for timber. Significantly.

At this time, the timber that had been restocked some time ago arrived one after another, and the time difference between supply and demand made sales far behind the arrival. For a time, the inventory pressure of distributors in major timber markets increased significantly, and timber prices began to fall.

Although the price of wood is so, but compared with the same period in previous years, the price of wood is still at a high level. "Big ups and small downs" is the status quo of prices.

At present, the downstream is still dominated by wait-and-see. On the one hand, with the arrival of the lumber market's off-season, the demand for wood has weakened. On the other hand, everyone feels that the price of wood can be lowered.

The steadily declining timber demand has sounded the alarm for overcapacity. If this continues, far more than demand will become the biggest problem in the timber market, which will then trigger a price war.