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The export value of Vietnam's timber industry fell 45.46% month-on-month in the first half of the month

Due to the impact of the new crown pneumonia epidemic, the production and export activities of Vietnam's timber and wood products have been severely affected, resulting in a 45.46% drop in the export value of the timber industry in the first half of August 2021.

According to statistics from the General Administration of Customs of Vietnam, Vietnam’s exports of timber and wood products reached US$1.333 billion in July 2021, a decrease of 14.4% from the previous month. Among them, the export of wood products reached US$1.031 billion, a decrease of 16.4% from the previous month.

In the first half of August 2021, the export value of timber and wood products reached only 373 million U.S. dollars, a decrease of 45.46% from the previous month. Therefore, as of August 15, the total export value of the timber industry reached 9.95 billion US dollars, of which the total export value of wood products reached 7.7 billion US dollars.

In July 2021, exports of timber and wood products to many major markets have fallen sharply. Among them, the export value of timber and wood products to the United States only reached 8536.8 million U.S. dollars, down 16.44%; the export value to China reached 10948 million U.S. dollars, down 19.99%; the export value to France reached 9.24 million U.S. dollars, down 26.25%; Germany reached 8.13 million US dollars, down 15.94%; exports to Malaysia fell 21.07%.

Affected by the raging spread of the new crown pneumonia epidemic in China and Asian countries, timber companies have to face production stagnation, export suspension and slowdown.

From now to the end of the year, the export prospects of Vietnam's timber and wood products are optimistic because the major export markets such as the United States and EU countries are beginning to recover from the new crown pneumonia epidemic, so the demand for wood products will increase to meet these markets Strong construction demand.

2. The cost of timber transportation at the border of Myanmar has tripled

The cost of timber transportation at the border of Myanmar has tripled. Today, Myanmar's only trade outlet can only rely on land transportation of timber to markets in China and India. However, Myanmar has recently ushered in the third wave of the epidemic, which has severely affected the trade between China and Myanmar.

Due to the epidemic, the freight rate from Mandalay to Ruili for a large truck carrying 30 tons of goods in Myanmar has increased from 1 million to 2 million kyats in the past to 7 million kyats (approximately 27,600 yuan). , The cost has increased by more than three times! In addition, nucleic acid tests are required at every checkpoint at the port, and they are still stranded in Myanmar after a week or even 10 days. The customs clearance time is slow and the delivery period is greatly extended, resulting in the continuous increase of timber transportation costs.

3. Ghana's timber exports to Asian markets have increased by more than 60%

Ghana has five major mainland markets for timber products. Available data show that Asia and the Far East are the main market destinations, with the least exports to Oceania. During the reporting period, Ghana’s timber exports to Asian markets increased by more than 60%. The Middle East market also had a positive impact during this period, with a year-on-year growth of 4%.

Compared with 2020, the growth rate of Ghana's exports to Europe, Africa and the United States in the first five months of 2021 is only moderate. Wood products exported to these regions include air-dried and kiln-dried sawn timber, wood billets, teak and mahogany cut veneer, rotary cut veneer, and plywood.

4. Indonesia's exports of furniture and handicrafts to the United States are growing

Indonesia's furniture and crafts exports are growing, especially exports to the US market, which increased by 35% in the first half of 2021.

According to Abdul Sobur, chairman of the Indonesian Furniture and Crafts Industry Association (HIMKI), in the first half of 2021, furniture and crafts exports amounted to US$1.687 billion, a year-on-year increase of 35%. The main market is the United States (50%), followed by Japan (7%), the Netherlands (5%), Germany (4%), Belgium (4%), Australia (3.6%) and the United Kingdom (3%).

At the same time, the Director of the Production and Forestry Bureau of the Ministry of Environment and Forestry (KLHK) reported that the export of forests and timber products in the first quarter of 2021 increased from US$2.731 billion in 2020 to US$3.045 billion. In the second quarter of 2021, exports increased by 70% year-on-year.

5. It is expected that Mali hedgehog red sandalwood will have new products on the market after September

The latest news reflects that due to the continued weak demand in the downstream market, the price of red sandalwood hedgehog fell rapidly after a small increase at the beginning of the month. The price of red sandalwood hedgehog (7788) from Sierra Leone is currently reported to 6800-7200 yuan/ton, returning to the previous price.

The business operator said that it is expected that new products of the hedgehog red sandalwood from Mali will enter the market after September. It is not known how the market will change at that time, but it is certain that the hedgehog red sandalwood is under the condition of tight funds and low production enthusiasm in downstream manufacturers. It is an indisputable fact that the price "cannot rise".

6. The African timber market shows signs of improvement

Or the fall in African timber prices in July stimulated downstream market demand. Although the off-season atmosphere was still strong in August, African timber showed signs of upward trend and the market was slightly better. However, during the visit, some merchants "dismissed" such signs and even held a pessimistic attitude towards the market outlook.

It is understood from the market that the current stocks of various varieties of African timber are relatively sufficient, and even slightly overstocked. This is also one of the main reasons for the price cut last month.

It is understood that:

Casla shipments have been enlarged.

It is reported that due to the tight supply of Burmese timber, some downstream manufacturers that use Burmese Casla have switched to purchasing African Casla. After the price cut last month, Casla's price-performance ratio has improved, and some wait-and-see manufacturers have also placed orders for purchases.

Sapele and Pakistan's buying sentiment also improved slightly.

The prices of hedgehog red sandalwood, Shen precious, and Begonia wood tended to be stable.

New materials for minibuses entered the market, but they did not boost the market.

After the small zebra wood dived at a high price in July, it has limited the market's increase in amplitude and the market performance is mediocre.

In terms of price:

After the price adjustment in July, the current market quotations have been in a relatively balanced state. The quotations in August did not change significantly from the previous month, and they were generally stable and excessive. The survey also learned that individual varieties (mainly mahogany varieties) have been fine-tuned according to market changes, but the range is not large.

The Casla is 5cm thick, 2-4m long, and A-class price is 3300-4000 yuan/cubic meter.

The small zebra is 5cm thick, 2-4m long, and A-class price is 8500-9200 yuan/cubic meter.

The price of Bahua is 5cm thick, 2-4m long, and Class A is 18500-19500 yuan/cubic meter.

The good price of Sierra Leone Hedgehog Red Sandalwood (7788) reported to 7,500 yuan/ton, a slight increase of 300-400 yuan/ton.

Shen Guibao's selection price was reported at 4100-4200 yuan/ton, and the unified cargo price was reported at 3700-3800 yuan/ton, a drop of more than 300 yuan/ton.