Wood Market Survey: Increased Wood Imports, Minimal Profits
From the second half of 2016, China’s timber imports have increased significantly. Recently, reporters from the CCTV Economic Information Network visited the main port for importing timber (Lushan Port). China board trading network news: Wood Market Survey: Wood imports increase profit margins In the early morning, the operation of the timber port in Rizhao Port has begun. At first glance, the entire timber yard is full of goods, waiting for the vehicles that have unloaded the timber to leave the port. The person in charge of the port told the reporter that this yard is a temporary transit station for timber arriving in Hong Kong. Since the number of imported timber has soared this year, the timber arriving in Hong Kong must be transported to designated warehouses as soon as possible. Otherwise, the loading and unloading progress of timber in Hong Kong will be affected. ► Zhang Zongwei, director of the timber department of the business office of Rizhao Gangshan Port Co., Ltd.: The short-term market behavior reflects this problem, and now the number of ships arriving in Hong Kong has increased. Afterwards, the reporter came to Rizhao Port's timber warehouse, which occupies an area of ​​about 500 mu. The amount of wood storage is nearly saturated. The person in charge told the reporter that since April 1, 2014, the country has gradually ceased commercial logging on natural forests, while domestic demand has continued to increase. The timber import volume drastically increased. Most of the imported logs were from Russia, New Zealand, and the United States, of which Russia accounted for the vast majority. ► Fu Haining, deputy chairman of the China Timber and Wood Products Circulation Association: At present, the domestic timber market does have a relatively large gap. Generally speaking, the import volume will continue to increase, otherwise it will not be able to satisfy the domestic normal timber. demand. In the first quarter of this year, Rizhao Port has completed the import of 700,000 cubic meters of timber, an increase of 5% over the same period of last year. Last year, the imported timber from Rizhao Port exceeded 3 million cubic meters, and the amount of wood received and discharged was ranked first in the nation's coastal ports. According to customs data, the country imported 9,470,100 cubic meters of wood last year, an increase of 14.69% over the same period of the previous year, among which the import of logs was 48.733 million cubic meters, an increase of 9.35% over the same period last year. Small profit margin domestic timber traders become "porters" The growth of port throughput means that the timber trade is active. Traders at the forefront of the market are naturally busy. However, in the interview, the reporter found that although the import volume has come up, the timber traders are somewhat happy. "White busy" means. Dai Fuquan has been engaged in timber business for more than 20 years. In his cargo yard, the reporter saw that the timber in various countries was piled up like a small hill. He told reporters that he had increased the import of logs since he started his own business last year, mainly because the state prohibited commercial logging of natural forests. ► Rizhao Meifujia International Trade Co., Ltd. Dai Fuquan: I think this country is a good thing to limit logging. It is also a source of protection for us. Then we import it from various countries. This quantity is constantly replacing domestic timber. Although Dai Fuquan adjusted his business strategy early, the result did not please him. Since the end of last year, foreign merchants have discovered that Chinese traders have made large purchases and immediately increased export prices. However, a large amount of imports made the market adequate, and domestic prices did not have much gains or even fell. Taking Russian logs as an example, the import price is about 1,000 yuan per cubic meter, and the domestic price is about 1100-1200. Excluding shipping and port operations fees, inspection and quarantine and other miscellaneous fees, the profit per cubic meter of raw wood is less than 50 yuan. ► Rizhao Meifujia International Trade Co., Ltd. Dai Fuquan: This price increase and price fall are the reasons for inventory. If you have a large amount of it, you will fall down. If you have a small amount, it will go up. Basically it is all this. Dai Fuquan told reporters that foreign forest resources are very rich, and local timber prices are very low, but foreign merchants' export pricing is based on the market demand in China and it is basically out of the pricing of timber raw materials. Although China's import demand is increasing, Due to the lack of bargaining power, domestic traders have limited profit margins. ► Fu Haining, deputy head of the China Wood and Wood Products Circulation Association: Traders do not make money. Then there are jokes in the industry. We said that our Chinese timber import trader has become a porter and moved foreign timber to the country before processing and sales. Domestic demand continues to increase Imports of timber increase year by year Although the traders only made a lot of money, the reporter learned that with the full stop of commercial logging of natural forests in the country, imports of timber will continue to play a major role in China’s commodity wood in the long term. In Rizhao, the largest timber processing company in the country, the reporter saw that there was a lot of production and there were many vehicles coming to pull goods. The person in charge of the factory told reporters that the semi-finished products they processed were mainly used for home decoration materials. In recent years, with the rapid development of the real estate market, the market demand for wood has been increasing year by year. ► Wu Zhixi, general manager of Rizhao Jiarun Wood Industry Co., Ltd.: We have a very fast economic development in the past ten years and the demand for wood is also very large. Last year was a special year. Last year, our real estate was relatively active, so the demand was relatively large. . Wu Zhixi’s company was originally located at the Suifenhe Port in Heilongjiang. In the past few years, the factory was built in Rizhao through a joint venture model. The purpose was to be able to import raw materials quickly and quickly and reduce production costs. At the same time, Wu Zhixi spotted the growth of the consumer demand for solid wood environmental protection furniture and focused on increasing the production of panel wood products for furniture. ► Wu Zhixi, general manager of Rizhao Jiarun Wood Co., Ltd.: Our annual wood growth rate is more than 10%, and the annual growth rate is between 15% and 19%. ► Fu Haining, Vice Chairman of the China Wood and Wood Products Circulation Association: This increase in our demand is mainly due to our domestic consumption of building materials, furniture, coal industry, and other construction industries. According to the data from the China Timber Distribution Association, China’s current annual average trade volume of commercial timber exceeds 160 million cubic meters, of which imported timber is growing rapidly, accounting for 60% of the total trade volume. It is expected that the amount of imported timber trade will exceed 80% in the future. 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