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Why Are Timber Prices Rising All The Way

Feb 18, 2022 Leave a message

There is no exception in the year of the tiger. After the festival, prices rose vigorously. Although the trend of wood varieties has been differentiated, the overall wood price has achieved a considerable increase ranging from 50-280 yuan / cubic meter.

However, according to the latest news, there are few orders at present, and the operating rate of the national timber market is about 50%. The main reason for the rise in prices is the rising cost of raw materials. Log traders lost almost all in the second half of last year, and now there is no way out but to rise.

In addition, China's dependence on foreign timber has increased year by year, and has become the world's largest timber importer. Now the sea freight has been soaring, the foreign quotation is also rising, and the arrival price of logs will continue to rise. Superimposed on the recent rise in crude oil price, the turnover and transportation cost of timber has increased, the logistics cost has increased, and the market that flour is more expensive than bread has to rise.

The downstream demand of timber is mainly driven by infrastructure and real estate. How can we bear the current limited domestic demand? Most of the projects had difficulty in collecting money last year. In addition, due to the cold weather in the northern region, the construction site has not started yet, which superimposes the impact of the epidemic. This year, the construction site opening meeting is generally delayed, and the market is finally demand-oriented. The next price is still uncertain. In the face of this year's timber market, we should be cautious, calm and careful consideration.

On the whole, although the supply and demand sides are recovering steadily, the continuous increase of raw material prices, shipping, freight and labor costs has sounded an alarm to wood enterprises, and the cost of wood enterprises has been pushed up. Finally, whether the wood market can continue to improve depends on the demand.

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