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Weekly industry news summary
From January to May, the total export of furniture and its parts in China is 186.63 billion yuan
According to the data released by the General Administration of Customs, in May 2021, China’s total exports of furniture and parts were 40.92 billion yuan, and the cumulative exports from January to May were 186.63 billion yuan. The total exports from January to May last year were 122.06 billion yuan, the top 5 this year. Monthly exports increased by 52.9% year-on-year in the first five months of last year.
Some market participants reflect that the growth of furniture exports is undoubtedly a big plus for the wood industry, which is closely related to it. At present, the demand for furniture in the domestic market is weak, and the overstock of furniture cannot be ignored. Therefore, the trading atmosphere in the timber market has fallen into a deserted state. Under such a severe background, the substantial increase in furniture exports can undoubtedly effectively consume the furniture inventory in the domestic market, thereby returning the furniture market to a "healthy" state.
As for the timber market, the effective consumption of furniture inventory will inevitably stimulate furniture manufacturers to speed up the restoration of production capacity, and the market demand for timber will also increase in volume. In view of this, it is expected that the timber market may have a significant increase in the future, especially in the traditional peak season in September and October. It is recommended that all parties in the market can focus on the direction of the timber market.
The price of European spruce logs shows a stagnant trend
Recently, the price of European spruce logs, whose prices have been rising all the way, has shown a stagnant trend. CIF prices have been above 190 yuan/cubic meter and few merchants are willing to take orders.
At the same time, the domestic sales price also heard the sound of falling. Some businessmen revealed that the current domestic sales price of European spruce logs in Qingdao, Shandong has dropped by 150 yuan/cubic meter, and reported to about 1350 yuan/cubic meter.
French environmental protection policy exacerbates the shortage of local timber
In an effort to achieve carbon neutrality by 2050, France previously announced a new building bill that requires half of the materials used in the construction of public buildings to be wood or other natural substances. The promulgation of this law is regarded as an important measure for France to achieve carbon neutrality.
According to Agence France-Presse, the bill will ensure that all new public buildings are constructed with at least 50% wood or other natural materials. The bill will be implemented in 2022, and all public buildings funded by the French government will be subject to the bill.
Due to the impact of the new crown pneumonia epidemic, the timber procurement boom in France coincides with a period of slowing global production. At the same time, due to the new regulations and the surge in projects before the 2024 Summer Olympics in Paris, the shortage of timber in France is particularly serious.
The price of cork in the United States more than tripled last year, causing American businesses to order more wood from other countries, including major European suppliers such as Sweden and Finland. Further reduce the volume of domestic timber purchases in France. Although France is one of the countries with the highest forest coverage in Europe and more than 30% of its land is covered by trees, the wood products industry in this country is still underdeveloped. This means that industries such as construction must source wood from other countries.
The fact is that due to the rebound in global construction activities after the epidemic, it is difficult for the supply chain to quickly return to the level before the epidemic, so it is difficult to purchase wood and other materials, including steel and cement.
The import route of Australian radiata pine logs has changed
The import route of Australian radiata pine logs has changed. According to the business report, although the timber trade between China and Australia has been stopped, as the saying goes, “there are policies at the top and countermeasures at the bottom”. Many local timber exporters in Australia have adopted the export of timber. To other countries, and then transfer from other countries to China to realize the timber trade between China and Australia.
However, the business also said that this method will undoubtedly increase the import cost of radiata pine logs, leading to its lack of market competitiveness.
