In the recent period, coronavirus pandemic has reduced logging in many countries, overseas container costs and sea freight prices have risen, and prices for imported wood raw materials in China have risen by more than 30%, industry insiders report. 

Due to the impact of the pandemic, some timber-producing countries have reduced log harvesting, and some countries have even suspended log exports. This has led to greater difficulty in exporting logs to China and to a lack of timely timber supply.

80% of China’ wood processing industry depends on imports, and a large proportion of wood products are imported from Russia, Indonesia, and Malaysia each year. In addition, the United States, Gabon, Germany, Finland, Sweden and Thailand, etc. are also the main sources of wood imports in China. The timber harvesting exports of the producing countries are generally greatly affected. In the long run, prices of logs will have a certain increase, and even affect the price Chinese processed wooden products.

Currently, affected by the epidemic, major foreign ports are closed. Once the global timber producers stop working and resume production, it will take about 60 days to resume normal supply. In addition, the reduction of shipping positions will lag behind replenishment.

As the largest timber importing country, China has an annual import volume of timber as high as 500 million cubic meters.

Lu Yuke, general manager of China’s Parker Brothers Home Furnishing, said: “Most factories have stored enough raw materials to support for a period of time. The current consumption trend in the home furnishing industry is oversupply. Taking North American black walnut as an example, the current situation is that if there are 10 million cubic meters in the market, consumer demand is only 2 million cubic meters, which is relatively sufficient for raw materials. “

Zhang Hongchao, director of the Shaanxi Provincial Forest Products Quality Supervision Station, said that although the current increase in log prices has not yet affected wooden products, judging from the Chinese lifestyle, there is still a very large demand for wood. If the epidemic continues to spread around the world, the costs of logging, processing, and logistics from the source will increase gradually, and the price of logs will increase, which will inevitably affect all industries related to the wood processing industry.

Panpan Mumen Manager Liu Jingjun said that the current year’s market digestion of China’s stock is still the previous year’s inventory. As far as the current global economic situation is concerned, if the inventory is digested, it will be more and more difficult to import timber from Thailand, Indonesia, Russia, the United States and other places, and the cost will be higher and higher. The cost of labor, processing and logistics will be also higher and it is expected that the growth rate prices of wood products in China to be more than 30%.

The post Coronavirus: Skyrocketing timber prices in China as global supply falls sharply appeared first on Timber Industry News.