The supply of resources is in short supply

“With the rapid global timber resource rush and the implementation of stringent control policies in material-producing countries, the contradiction between the supply and demand of timber in the market has gradually deepened. With the increasingly prominent problem of domestic labor shortage and the continuous increase in freight rates, various factors have caused timber prices to rise all the way, and prices have risen. It's no longer the same language."

1, lack of resources, strict control of policies is the main reason

Global shortage of wood resources is the root cause of the continuous rise in sawn timber prices. According to analysis by industry insiders, in recent years, due to the huge demand of wood for the market, the amount of cutting is far greater than its growth, resulting in a sharp reduction in the world's forest resources, natural forest production decline year by year, the market's supply and demand of timber contradiction gradually emerged.

The reduction of forest resources has attracted the attention of all countries in the world. Myanmar, Southeast Asia and China have started to control the export of timber. However, the implementation of the cutting-limit policy made the timber market appear to be “less meaty”, and it became a fiery object that was scrambled for a long time, and the price rose rapidly.

Domestically, since January this year, the National Development and Reform Commission issued a document saying that wood production in the Greater Xing'an Mountains forest area will be substantially reduced in 2011. The major cutting will be completely stopped in the Greater Xing'an Mountains forest area in Heilongjiang Province; Natural forest cutting. The harvested forest area will be reduced from 7.2 million cubic meters per year to 2.95 million cubic meters. With the implementation of policies such as production cuts, forest production in the northeast, Inner Mongolia, and other forest areas has experienced sharp declines in raw material production, which has directly led to a shortage of downstream sources, which has continued to cause downstream prices of northeastern timber to climb all the way, including ash, As represented by hardwood species such as eucalyptus, the price rise is quite fierce. Some merchants stated that the price of raw materials for ash will have risen by 1,000 yuan/cubic meter compared to the same period of last year, and the price for sawn timber (furniture material) has reached 3,900 yuan/cubic meter, while the price of ashwood wire has been ridiculously high. There is no market space at all, most dealers have also temporarily suspended the production of Ash wood wire, and the downstream market can only rely on the previous inventory. The price of eucalyptus has also increased by more than 500 yuan/cubic meter, and it is currently reported to 4,500 yuan/cubic meter or even higher.

In Myanmar and Southeast Asia, successive years of deforestation have led to a rapid decline in reserves of forests in Myanmar and Southeast Asia. The supply situation of raw materials has tightened year by year, and the market has risen. Especially in the past two to three years, Burma, Southeast Asia, the frequent supply of materials. In order to protect local resources, we began to implement environmental protection policies and strictly control the export of timber. In particular, since the beginning of this year, Myanmar, Southeast Asia and other places have implemented the closure policy, strictly limit the export volume of timber in each port, and increase the control over the export of timber, resulting in The output of wood has fallen sharply from previous years. Due to shortage of supplies, the prices of materials in Burma and Southeast Asia have been rising. Among them, the prices of products such as gold pomelo and Pontianak continue to record as high as the competition. At present, the price of Pontianak has soared from 9,000 yuan/cubic meter to 10,000 yuan/cubic meter; the price of gold grapefruit has risen to 7,000 yuan/cubic meter.

2. The serious "labor shortage" has caused companies to increase their employees' salaries, but the production cost of wood has also been pushed up.

The “labor shortage” problem in 2010 was extended to 2011, and its severity was even worse than in 2010. After the Spring Festival this year, serious shortages of workers were found in most of the coastal areas of China. In order to retain employees, enterprises had to increase their wages and treatment. Some businesses report to reporters that the salary of ordinary employees last year was 2,000 yuan/month, and this year it has risen to 3,000 yuan/month. Employees are retained, but the cost of production has been pushed up.

3. The continued rise in oil prices has led to rising freight rates, which has greatly increased the transportation costs of timber.

The fluctuation of international oil prices directly led to the continued rise in domestic oil prices. At present, the international oil price has increased from last year's 50 US dollars / barrel to the current 105 US dollars / barrel. Insiders reported that freight rates account for a significant proportion of wood production costs, and the rise in oil prices has greatly increased the transportation costs of timber.

Therefore, the increase in labor costs and transportation costs will undoubtedly increase the company's operating costs. To pass on cost pressures, dealers have to increase the selling price of wood products.