According to China’s timber industry market demand and investment consultation report from 2016-2021，timber prices continue to rise, for a number of reasons.The price of lumber timber in 2016 has been affected by the lack of raw materials, high price of sea freight and the depreciation of RMB.
First, there is a huge demand.At present, China’s timber consumption is nearly 500 million cubic meters, and by 2020, China’s timber demand will reach about 800 million cubic meters, and China’s timber External dependence is up to 50 percent.Due to the increasing contradiction between the effective supply of forest and the increasing social demand in China, the external dependence of timber in China continues to increase,under the seller’s market, prices are naturally rising.
Secondly, many big producer governments have recently stepped up their timber management policies,Including the prohibition of the export of lumber unfinished export etc.Future timber policies will be stricter and more frequent,not only will affect the quantity of China’s timber imports , but also will continue to push up the price of China’s timber market.
Third, operating costs are rising.The cost of customs clearance has risen sharply as the region has increased tariffs.Some wood cannot be exported in log , need to be processed into square or board in local area, the cost of operating will grow have risen sharply.In addition, with the rising cost of manpower, the cost of procurement of timber developers has increased. The cost of procurement for timber developers increases,the rise in operating costs has been partly passed on to timber prices.
