Log prices rose** downstream industry chain
The industry has already set its sights on South America and Africa, but if it cannot grasp the upstream resources, it will still be difficult to swallow the bitter consequences of soaring costs.
It is understood that the major importing countries of China's original timber and downstream products are Malaysia, Indonesia, the United States, Russia, and Thailand. Among them, Indonesia, Malaysia, and Thailand are all victims of the tsunami. The reconstruction of these countries will inevitably require a large amount of raw wood, and the export volume will certainly be affected. The original timber price will also be affected.
However, people in the industry think that the tsunami is just the last straw to overwhelm camels. An original timber trader stated that the impact of the tsunami on the original timber import was first of all psychological. Last year, most domestic manufacturers had inventories. However, they feared that the original timber import volume would decrease in the future, and exporters who were affected by the trend would raise prices.
In fact, after the Spring Festival in 2004, the prices of floor raw materials have generally risen, with an increase of about 10% in one year, and individual varieties have even reached more than 20%. “Forests in Southeast Asia have been under excessive pressure for many years and are under pressure from environmental protection. Various governments have started implementing policies to restrict the production and export of precious timber,†the trader pointed out. Take Indonesia as an example, in order to protect the ecological environment and maintain the prices of composite panels and other raw wood processing products, the government has temporarily banned the export of logs since January 2002 and has forbidden the export of logs forever since June 8, 2002. After the tsunami, because of the reconstruction, the smuggling of logs was painful.
In the acquisition of 1,000 square kilometers of forest resources in Brazil, Lu Weiguang, chairman of Shanghai Anxin Flooring Co., Ltd., who has firmly grasped the upstream resources, told reporters that the original timber price will be a threshold this year and will separate enterprises with resources and no resources. “I estimate that 40% of the domestic companies will close down, but for Anxin, the increase in the price of raw wood is actually good news.†Lu Weiguang said with a smile.
At present, 70% of the original timber of Anxin comes from Brazil, 15% from Indonesia, the remaining 10% from Russia, and Africa and Myanmar together account for 5%. Increasingly tightening supply in Southeast Asia is no longer able to meet China's growing demand for imported raw wood, but success stories like Lu Weiguang are still rare.
It is reported that the timber from Australia, Europe, Africa, and the Americas has entered China as early as several years ago, and the current imports are increasing. In Lu Weiguang's view, "who grasps the upstream resources, who can win the market." The predicament of the current domestic timber price may be a good revelation. Seizing resources will also decentralize procurement channels.