New Coronary Pneumonia
2020年6月10日In 2020, the outbreak of New Coronary Pneumonia epidemic in the world will have a serious impact on China and overseas timber markets.
There is no doubt that the North American timber market is the hardest hit. According to a survey conducted by reporters from the Wood Kingdom, although the wood industry is classified as a ’critical infrastructure force’ (United States) and a ’essential industry’ (Canada), both can still be delivered normally. However, due to the sharp decline in domestic and foreign market demand, some factories in the United States and Canada were forced to close or partially reduce production. Conifex, West
North American wood industry giants such as Frase and Interfor are among the production cuts. Some people in the industry estimate that the wood output of the United States alone will fall by 2025 percent from April to May.
What’s more, China is an important consumer of timber in North America. Affected by the New Coronary Pneumonia epidemic and many other political and economic factors, China-US timber trading activities have been seriously affected. In an interview with Timber Kingdom reporters, North American timber importers in the Chinese market said that since March, their North American timber imports have been reduced by at least half compared to January and February. Although many of them are caused by blocked supply channels for the epidemic, they are more affected by insufficient domestic and foreign demand.
The demand for wood products such as furniture and flooring in the United States has fallen sharply
The epidemic caused a catastrophic blow to the overseas home furnishing market, especially the US market. In order to combat the epidemic, the United States has entered the stage of home segregation. Local household consumption has completely stalled, and the demand for furniture, flooring and other wooden products has shrunk severely.
Take the cabinet market as an example. According to a survey, customer traffic in the US cabinet showcases fell by more than 70% in March and April, and orders also shrank by more than 50%. Some cabinet factories have to close more than 50% of their production lines.
This is particularly true of the flooring market. It is reported that due to the sluggish market demand, many companies will continue to reduce order contracts within the next month. A multi-layer solid wood flooring manufacturer said that it will not purchase any oak board in the near future.
From this, it is not difficult to see that under the influence of the New Coronary Pneumonia epidemic, American wood and wood products companies are facing unprecedented operating pressure, stainless steel kitchen cabinets china and news of corporate losses and bankruptcies is coming up one after another. According to industry news, Art, a 60-year-old furniture retail company
Van Furniture has been unable to withstand the pressure, recently filed for bankruptcy, and quit the furniture market. And American hardwood flooring giant AHF
Products announced the dismissal of its 215 employees at the Beverly plant in West Virginia, USA to reduce capital expenditures and save costs. Steelcase, an office furniture manufacturer, announced that the base salary of all employees will be reduced by 50%, and their working hours will be reduced accordingly. At the same time, all the hourly workers responsible for production and distribution work in Chi Ping, Michigan, will be fired.
The industrial chain is closely coordinated and interactive, and Chinese timber merchants have a hard time
Demand for overseas furniture markets such as the United States is declining. As the world’s largest exporter of furniture and wood products, China’s furniture and other wood products industry is difficult to protect itself. According to the latest export data released by the General Administration of Customs, China ’s total exports of furniture and parts in the first quarter totaled 68.77 billion yuan, down 18.7% year-on-year from 2019. In terms of domestic sales, consumer demand in the domestic furniture market fell by 29.9% year-on-year in the first quarter of 2020.
The downstream market demand is a direct manifestation of the large-scale contraction, that is, the furniture manufacturers cannot receive orders and the factory is closed. Take Dongguan, an important furniture foreign trade town, as an example. According to a local furniture manufacturer, the factory has not received new orders for nearly a month. The stock orders from the United States have also been suspended or cancelled by customers. The factory is now facing a crisis of survival. Other domestic furniture manufacturers such as Jiangsu and Zhejiang have entered the vacation mode. Enterprises have reduced production, revenue has fallen sharply, and there have even been signs of a ’failure’.
Faced with such a bleak market, the North American timber as the upstream market for furniture, life is equally sad. According to the survey, in the first quarter of 2020, the shipment volume of North American mainstream materials such as ash and red oak fell by more than 50% compared with the same period of last year, and the shipments of individual dealers even fell by about 70%. Some businessmen said that at present most of the timber merchants in the Dongguan market are directly sent to the factory, and the market sales volume is one of the best in southern China. However, problems such as slow factory returns and capital risks continue to plague the businessmen. ’Now many businesses go to the factory to deliver goods at night, even if the factory will close down the next day.’ Some businesses said.
Picture provided by Dongguan Yisen Wood
In addition, in terms of timber sales prices, as sales continue to decline, North American timber prices have also plunged, such as ash. According to the monitoring data of the Timber Kingdom, in January, the ash is 2.153.05m long, 2 inches thick, and the FAS grade quotation is about 72007500 yuan / cubic meter. At this stage, the price has fallen to 65006700 yuan / cubic meter, a drop of about 700800 yuan / cubic meter. Red Oak is 2.153.05m long, 2 inches thick, and FAS-level prices have also dropped from 76,007,800 yuan / cubic meter in January to the current 7,007,200 yuan / cubic meter, a drop of about 600 yuan / cubic meter.
’Most of the North American timber currently on sale was purchased in the second half of last year. At that time, the price of North American timber was at a high level, but now the price has fallen to the bottom, and dealers have suffered serious losses, with a loss of 700,800 yuan / cubic meter.’
Some merchants said helplessly.
Market liquidity in the second half of the year will be the key to survival
It is undeniable that in the first half of 2020, China conducted a tax rebate on the part of the tariffs imposed by US timber last year, and many North American timber dealers were able to recover part of the cost, which gave companies a chance to take a breather. However, if the outlook for North American timber continues to be weak, timber Even if an enterprise has more funds, it is difficult to maintain continuous consumption.
Some market participants said that from the current macroeconomic level, the North American timber market is unlikely to recover in the second half of the year. On the one hand, the impact of the overseas epidemic on overseas furniture business is obvious, https://www.bainengkitchen.com/ and the overseas epidemic will reduce the expectation of global economic growth. The negative impact of shrinking external demand on China’s furniture exports will gradually be reflected. At the same time, the spread of overseas epidemics has led to the stagnation of the corresponding furniture production activities. The corresponding industries of the processing trade are facing the impact of the interruption of the industrial chain. It is difficult to recover in a short time, and the furniture export situation is difficult to be optimistic for a long time. On the other hand, although many governments across the country have issued real estate stimulus policies and received certain results, it has to be said that the recovery of the propertymarket is far from expectations. What is more serious is that the future expectations of the property market are hard to be optimistic, mainly due to the high housing penetration rate in China today, and the accelerated aging rate in China in recent years, the birth rate has decreased, coupled with the tightening of government macro-control, ’Under the keynote, the era of real estate investment has passed, and the future property market will fall into a dull situation, and the growth rate of the related timber industry market will also slow down significantly.’
Picture provided by Dongguan Yisen Wood
Therefore, for the next North American timber market, distributors should be prepared for long-term difficulties. Some dealers revealed that under the background of many domestic and foreign environmental uncertainties, the North American timber market competition will be unprecedentedly fierce in the second half of the year. It is not ruled out that dealers will make ’jumping prices’ to return the funds Behavior, the industry has entered a stage of shuffling. In this case, in order to deal with unknown risks, wood companies have been unable to adapt to market changes based on past judgment experience. Therefore, timber companies should be step by step in their business strategies, being cautious and conservative, and refraining from acting rashly. In addition, wood companies should pay more attention to changes in the wood market than before, and adjust business strategies in a timely manner according to market changes and their own conditions. Only in this way can they become more comfortable in the ever-changing market and eventually become industry winners.
Overcoming is victory.
There is no doubt that the North American timber market is the hardest hit. According to a survey conducted by reporters from the Wood Kingdom, although the wood industry is classified as a ’critical infrastructure force’ (United States) and a ’essential industry’ (Canada), both can still be delivered normally. However, due to the sharp decline in domestic and foreign market demand, some factories in the United States and Canada were forced to close or partially reduce production. Conifex, West
North American wood industry giants such as Frase and Interfor are among the production cuts. Some people in the industry estimate that the wood output of the United States alone will fall by 2025 percent from April to May.
What’s more, China is an important consumer of timber in North America. Affected by the New Coronary Pneumonia epidemic and many other political and economic factors, China-US timber trading activities have been seriously affected. In an interview with Timber Kingdom reporters, North American timber importers in the Chinese market said that since March, their North American timber imports have been reduced by at least half compared to January and February. Although many of them are caused by blocked supply channels for the epidemic, they are more affected by insufficient domestic and foreign demand.
The demand for wood products such as furniture and flooring in the United States has fallen sharply
The epidemic caused a catastrophic blow to the overseas home furnishing market, especially the US market. In order to combat the epidemic, the United States has entered the stage of home segregation. Local household consumption has completely stalled, and the demand for furniture, flooring and other wooden products has shrunk severely.
Take the cabinet market as an example. According to a survey, customer traffic in the US cabinet showcases fell by more than 70% in March and April, and orders also shrank by more than 50%. Some cabinet factories have to close more than 50% of their production lines.
This is particularly true of the flooring market. It is reported that due to the sluggish market demand, many companies will continue to reduce order contracts within the next month. A multi-layer solid wood flooring manufacturer said that it will not purchase any oak board in the near future.
From this, it is not difficult to see that under the influence of the New Coronary Pneumonia epidemic, American wood and wood products companies are facing unprecedented operating pressure, stainless steel kitchen cabinets china and news of corporate losses and bankruptcies is coming up one after another. According to industry news, Art, a 60-year-old furniture retail company
Van Furniture has been unable to withstand the pressure, recently filed for bankruptcy, and quit the furniture market. And American hardwood flooring giant AHF
Products announced the dismissal of its 215 employees at the Beverly plant in West Virginia, USA to reduce capital expenditures and save costs. Steelcase, an office furniture manufacturer, announced that the base salary of all employees will be reduced by 50%, and their working hours will be reduced accordingly. At the same time, all the hourly workers responsible for production and distribution work in Chi Ping, Michigan, will be fired.
The industrial chain is closely coordinated and interactive, and Chinese timber merchants have a hard time
Demand for overseas furniture markets such as the United States is declining. As the world’s largest exporter of furniture and wood products, China’s furniture and other wood products industry is difficult to protect itself. According to the latest export data released by the General Administration of Customs, China ’s total exports of furniture and parts in the first quarter totaled 68.77 billion yuan, down 18.7% year-on-year from 2019. In terms of domestic sales, consumer demand in the domestic furniture market fell by 29.9% year-on-year in the first quarter of 2020.
The downstream market demand is a direct manifestation of the large-scale contraction, that is, the furniture manufacturers cannot receive orders and the factory is closed. Take Dongguan, an important furniture foreign trade town, as an example. According to a local furniture manufacturer, the factory has not received new orders for nearly a month. The stock orders from the United States have also been suspended or cancelled by customers. The factory is now facing a crisis of survival. Other domestic furniture manufacturers such as Jiangsu and Zhejiang have entered the vacation mode. Enterprises have reduced production, revenue has fallen sharply, and there have even been signs of a ’failure’.
Faced with such a bleak market, the North American timber as the upstream market for furniture, life is equally sad. According to the survey, in the first quarter of 2020, the shipment volume of North American mainstream materials such as ash and red oak fell by more than 50% compared with the same period of last year, and the shipments of individual dealers even fell by about 70%. Some businessmen said that at present most of the timber merchants in the Dongguan market are directly sent to the factory, and the market sales volume is one of the best in southern China. However, problems such as slow factory returns and capital risks continue to plague the businessmen. ’Now many businesses go to the factory to deliver goods at night, even if the factory will close down the next day.’ Some businesses said.
Picture provided by Dongguan Yisen Wood
In addition, in terms of timber sales prices, as sales continue to decline, North American timber prices have also plunged, such as ash. According to the monitoring data of the Timber Kingdom, in January, the ash is 2.153.05m long, 2 inches thick, and the FAS grade quotation is about 72007500 yuan / cubic meter. At this stage, the price has fallen to 65006700 yuan / cubic meter, a drop of about 700800 yuan / cubic meter. Red Oak is 2.153.05m long, 2 inches thick, and FAS-level prices have also dropped from 76,007,800 yuan / cubic meter in January to the current 7,007,200 yuan / cubic meter, a drop of about 600 yuan / cubic meter.
’Most of the North American timber currently on sale was purchased in the second half of last year. At that time, the price of North American timber was at a high level, but now the price has fallen to the bottom, and dealers have suffered serious losses, with a loss of 700,800 yuan / cubic meter.’
Some merchants said helplessly.
Market liquidity in the second half of the year will be the key to survival
It is undeniable that in the first half of 2020, China conducted a tax rebate on the part of the tariffs imposed by US timber last year, and many North American timber dealers were able to recover part of the cost, which gave companies a chance to take a breather. However, if the outlook for North American timber continues to be weak, timber Even if an enterprise has more funds, it is difficult to maintain continuous consumption.
Some market participants said that from the current macroeconomic level, the North American timber market is unlikely to recover in the second half of the year. On the one hand, the impact of the overseas epidemic on overseas furniture business is obvious, https://www.bainengkitchen.com/ and the overseas epidemic will reduce the expectation of global economic growth. The negative impact of shrinking external demand on China’s furniture exports will gradually be reflected. At the same time, the spread of overseas epidemics has led to the stagnation of the corresponding furniture production activities. The corresponding industries of the processing trade are facing the impact of the interruption of the industrial chain. It is difficult to recover in a short time, and the furniture export situation is difficult to be optimistic for a long time. On the other hand, although many governments across the country have issued real estate stimulus policies and received certain results, it has to be said that the recovery of the propertymarket is far from expectations. What is more serious is that the future expectations of the property market are hard to be optimistic, mainly due to the high housing penetration rate in China today, and the accelerated aging rate in China in recent years, the birth rate has decreased, coupled with the tightening of government macro-control, ’Under the keynote, the era of real estate investment has passed, and the future property market will fall into a dull situation, and the growth rate of the related timber industry market will also slow down significantly.’
Picture provided by Dongguan Yisen Wood
Therefore, for the next North American timber market, distributors should be prepared for long-term difficulties. Some dealers revealed that under the background of many domestic and foreign environmental uncertainties, the North American timber market competition will be unprecedentedly fierce in the second half of the year. It is not ruled out that dealers will make ’jumping prices’ to return the funds Behavior, the industry has entered a stage of shuffling. In this case, in order to deal with unknown risks, wood companies have been unable to adapt to market changes based on past judgment experience. Therefore, timber companies should be step by step in their business strategies, being cautious and conservative, and refraining from acting rashly. In addition, wood companies should pay more attention to changes in the wood market than before, and adjust business strategies in a timely manner according to market changes and their own conditions. Only in this way can they become more comfortable in the ever-changing market and eventually become industry winners.
Overcoming is victory.
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