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Caoxian Industrial Zone, Heze City, Shandong Province, China

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Why did timber prices rise so much this year?


As the world's second largest timber consumer and the largest timber importer, China's total timber consumption has increased by 173% in the past 10 years. At present, the national annual timber consumption will exceed 600 million cubic meters and the degree of external dependence will exceed 50%. With the rapid development of various industries, the demand of wood market will continue to grow.


Looking at this form, our timber prices will still rise. In the face of such a market, our life and business will continue. We can only minimize our losses. We should purchase in time when it's time to purchase. Let's briefly introduce the three reasons for the rise in wood prices!

First, the cause of the epidemic. In foreign countries such as the United States, Canada and some European countries, the demand for construction materials has increased. After the domestic epidemic has been effectively controlled, the economy continues to recover. The international community is optimistic about the Chinese market. It does not rule out that some foreign timber enterprises are speculative, reluctant to sell and deliberately raise the shipping price.

The second is the impact of land and sea freight. Since 2020, the epidemic has had a great impact on international trade, and the port import and export inspection and Quarantine has become more strict. It is difficult to find first class in shipping, railway transportation and air transportation. The increase of land and sea freight has promoted the rise of wood prices.

Third, the impact of supply and demand. In 2020, China's timber import volume was 108.02 million cubic meters, a year-on-year decrease of about 5%. Among them, 82.34 million cubic meters of coniferous wood, a year-on-year decrease of about 2%. Fourth, it is affected by currency inflation. In June and July last year, the US dollar was exchanged for 7.1 yuan, and now the US dollar is exchanged for 6.45 yuan. The RMB appreciated by nearly 10%, which has had a certain impact on some export-oriented enterprises. As the weather gets warmer and the vaccine is heavily vaccinated, COVID-19 will be gradually controlled, and the timber production of the major timber producing countries will gradually recover. At the same time, the main goal of China's economic and social development this year has been determined. The GDP is determined to be more than 6%, rather than more than 8% expected by foreign media. The overall economy is still based on stable operation, and the wood demand is expected to grow steadily and slightly.