The price of wood on the mainland is rising, but the downstream finished furniture does not dare to easily follow the price increase, resulting in some small furniture enterprises have to close down.
According to an April 4 report by CCTV Finance, the mainland is the world’s second largest timber consumer and the first largest timber importer, with a timber dependence of more than 50%. But since August last year, the price of wood has gradually increased, making many downstream enterprises with high demand for wood suffer.
Zhou Yunhong, chairman of a furniture company in Suzhou, Jiangsu Province, said that imported black acid branch last year almost a cabinet is 16,000 yuan (RMB, the same below) to 17,000 yuan, has now risen to 23,000 yuan to 26,000 yuan, but furniture to today, 5% are afraid to rise.
Wang Aimin, deputy general manager of a decoration company in Suzhou, Jiangsu Province, said that because the price of construction timber has risen by 15 to 20 percent or more in various degrees, they may turn out to be losing money when this project is delivered.
The report said that the price of raw materials rose, but downstream enterprises easily dare not raise prices, some large furniture companies because there is still inventory can be supplied for a period of time, while the situation has forced some small furniture factories to close down.
Wood price increases also make wholesalers very helpless, a wood industry group in Shanghai, Taicang port area sales manager Chen said, can not choose not to take each other’s goods because of price increases, especially there are some sources of goods, if not, the sources of goods will exclude you from the list outside. Therefore, the hard head must also receive this goods.
For the future trend of timber prices, Taicang City Timber and Wood Products Circulation Association Executive Vice President Ma Binhai said, from a long-term perspective, the price of wood is an inevitable trend.
Recently, because of the rising prices of chips and other raw materials, many industries involving people’s livelihood on the mainland have had to raise the prices of their products.
The mainland home appliance industry has raised retail prices due to chip shortages and price hikes in copper, plastic and other raw materials; the toilet paper industry also issued an announcement that prices will be raised from April 1.
Xu Qi, president of China’s smartphone realme China, warned that cell phone prices may fluctuate in the second half of this year due to the shortage of raw materials such as chips, batteries and sleeves in the upstream of the cell phone supply chain. Some analysts believe that it is highly likely that cell phone products will start to see price changes after June.
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