economic situation

Domestic and international economic situation has not yet bottomed out, downstream of furniture, decoration and other industries on the demand for wood continues to decline. By domestic demand for wood to reduce the impact of Zhangjiagang, Manzhouli, Suifenhe Port timber and fish bead international timber market in Guangdong and other timber distribution centers have a lot of inventory backlog. Oversupply situation for a moment, very difficult to break. Third, the increase in timber imports by foreign influence. The first is to reduce Russia's timber sales. Currently, Manzhouli and Suifenhe Port significant backlog of imports of timber, and the lowest quality. Secondly, although the Russian timber imports, although still on top, but with the increasing Chinese timber imports channels, wood quietly changing the pattern of imports, such as where the influx of New Zealand timber and timber so they can quickly become North America's second largest country timber import channels. Although Douglas fir Material New Zealand radiata pine timber in Russia and North America is better, but because of its low price, the larger diameter classes, adequate supply and other advantages in many areas are now replacing the traditional larch, Pinus sylvestris, birch, poplar and other species. Wood processing industry by doubling the impact of cost pressures. Currently the wood processing costs are increasing, timber-producing countries for the development of the local economy, but also continue to make higher export requirements, raise the price of timber origin. Layers of accumulated timber era of high profits will be gone forever. 5-10% profit point or will become mainstream. China's timber imports increased significantly, the main used in furniture manufacture, building renovation, which manufactures wood and large exports to Europe and America. Implementation of the Lacey Act amendments, so that European countries can not only control the wood products, but also extends to raw materials. Furniture and wooden products companies narrow selection of raw materials, some export-oriented furniture industry had to choose North America and Australia and other countries export timber, and participate in the chain of custody certification, leading to a further rise in raw material costs. European countries are further profit on the card industry chain, and a substantial increase in their timber exports through the use of the bill timber legality certification.