The price of both timber and freight increases. How hard is the household in 2021?
How hard is the furniture man in 2021? It was not easy for the epidemic to be alleviated, and the inventory was successfully completed, but they had to face the fact that the price of raw materials rose sharply. More importantly, the rising degree of timber price has far exceeded the acceptable level of the market, and even the high level is somewhat "outrageous", but when you hesitate and turn around, the price has risen a lot. It's not buying, it's not buying, what should furniture manufacturers do in 2021?
As we all know, the US economy recovers, the housing market is hot, and the demand for building timber is strong. However, due to factors such as weather, US welfare policy and epidemic situation, the production capacity of timber mill is limited, and the market is in short supply. The price of timber has become a matter of course. Wood industry professionals said: soaring wood futures contracts, including several-month contracts as far as November, indicate that wood prices will continue to rise for a long time.
(Image Source: China whole wood network, invasion and deletion)
on the other hand, shipping prices are also rising. At the end of March, the scene of six days of Suez canal blocking was still vivid. At the end of April, Shanghai container freight index (SCFI) hit a record high of 2980 points, up 5.2 percent on a week-on-week basis, the average freight rate of ball containers reached US $2980 per teu (20-foot-long container), which really made the market lose a lot.
(Image Source: China whole wood network, invasion and deletion)
some merchants said that since July 1st, container transportation fees in six continents including Europe and North America will increase significantly. At that time, the wharf side is responsible for all containers weighing, and overweight is strictly prohibited, which means that the timber carrying capacity of each container is several cubic meters less than before. In other words, the cost of each container will increase by about 125 euros, equivalent to about 925.9 yuan.
(Image Source: China whole wood network, invasion and deletion)
dustin jarbert, senior economist of RISI in Fastmarkets, also said in an interview with Fortune magazine: "The market is in trouble and it may lose control in the next few months."
for a long time, timber has been the seller's market, and the rising price of timber is a fatal blow to domestic small and medium-sized enterprises. Since August 2020, many small businesses have not survived this round of price shocks, and the current situation is even more difficult for them.
To survive in the gap, perhaps dealers need not only the decisive courage of killing, but also transparent and direct market information. Establishing communication with upstream suppliers can help them make more accurate decisions.
The "dialogue supplier" program jointly organized by Shanghai Timber Industry Association leaf wood professional committee and Jiangsu Huida timber trading center will be held on May 25. This dialogue will invite AWP, the largest producer of hardwood products in the eastern United States, to communicate with Chinese distributors on topics of mutual concern.
(Article Source: China whole wood network, invasion and deletion)
