Timber industry: control resources and win future
The 
China board trading network news:
"On April 4, 2017, Mozambique announced a ban on logging for the next three months nationwide." "Nigeria decided to stop issuing logging licenses from January to March, and the corresponding CITES organization also stopped issuing documents." "February 2017 The 1st International Trade Organization for Endangered Species of Wild Fauna and Flora (CITES) issued a Notice No. 012 (No. 2017/012) of the Contracting Parties in Geneva, Switzerland, proposing the suspension of trade in Dalbergia from Lao People's Democratic Republic. Commercial logging of natural forests..."
From the beginning of spring in 2017 to the present, news on the tightening of wood supply has continued to emerge. This is undoubtedly a “mortal wound†for China, a major timber consumer. Driven by the tightening of timber supply, the Chinese wood market has caused a “price increase†trend, up to high-end red timber species (such as Dalbergia japonica), down to low-end materials (such as pine wood), all of which have given rise to “price increasesâ€. Stir up the sky.
As of April 14th, the Guangdong Diabolo Dalbergi Market was 15-25cm in diameter, 1.8-2m long and 1.8-22 million yuan / ton, 30-35cm in diameter and 283-350000 yuan / ton, and more than 35cm in diameter reported 35-45 million yuan. / Ton, returning to historical highs. The prices of softwood, radiata pine, and hemlock were 50-80 yuan/cubic meters higher than at the beginning of the year. At present, the radiation pine wood Taicang Port 4 meters in the A reported 900 yuan / m3, Hemlock reported 1070 yuan / cubic meter.
Rising prices seem to be a good thing for timber dealers. Long-term merchants can take a relatively high price to make a profit. However, the facts are not as simple as imagined. According to the survey conducted by reporters, although the rising timber prices have brought some positive benefits to merchants in a short period of time, the hidden market risks have lingered. The impact is the decline in trading volume. Affected by the high price of the operation, after entering April, there was a significant contraction in the turnover of China's timber market, especially after the Ching Ming holiday, the market's shrinking rate was significantly accelerated, including the decline on April 5, 10 and 12. Most obviously, the transaction volume fell 6.11%, 5.32%, and 5.66%.
In addition, the price increase has also allowed timber dealers to raise operating costs by a certain degree. According to a survey conducted by the reporter, the major driver of the rise in timber prices this time is rising costs, rather than increasing market demand. This is also the most troublesome thing for timber dealers. Some businesses have said that the previous one or two million could maintain a cycle of operation, but now it has three or four million. “The same profits have to pay more money. How can this price increase be optimistic?†said some businesses. It can be seen that rising prices are also a serious test of the strength of timber business operators, capital games are also more intense.
The ever-increasing contradiction between the demand for wood and the supply of resources is an inevitable trend. Under the condition that Chinese businessmen are keeping their margins, maintaining a stable supply of timber will also be the top priority. There is no doubt that wood is a sustainable supply of resource-based commodities, especially for softwoods, as long as there is standardized and scientific management, we can achieve resource recycling in a relatively short period of time.
However, since 2017, China has completely banned the commercial deforestation of natural forests, which means that the future of Chinese timber is more dependent abroad. Without first mentioning hardwood species, cork, which occupies the major consumer market in China, will also face a huge market gap, and its dependence on foreign timber imports will also increase significantly. In the increasingly fierce battle for resources, Chinese timber merchants appear to be more passive in international trade, especially in terms of price. After the end of 2016, timber traders who have experienced major fluctuations in prices of softwood products have already tasted bitterness.
As soon as the early wood knows spring, all sorts of red and purple are fragrant. The tightening signal of global timber resource supply has been extremely strong. Chinese timber merchants maintain sales channels in the domestic market, and they also need to attach great importance to the development of foreign timber resources, so as to be invincible in the future market competition.
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