{"id":81441,"date":"2021-11-04T09:47:46","date_gmt":"2021-11-04T09:47:46","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/china-covid-19-cases-spike-puts-pressure-timber-prices\/"},"modified":"2025-09-19T08:56:25","modified_gmt":"2025-09-19T08:56:25","slug":"china-covid-19-cases-spike-puts-pressure-timber-prices","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/china-covid-19-cases-spike-puts-pressure-timber-prices\/","title":{"rendered":"China: COVID-19 cases spike puts pressure on timber prices"},"content":{"rendered":"
\n

China's new locally transmitted COVID-19 cases spiked to a near three-month high. In order to prevent the further spread of the epidemic, many provinces, municipalities and regions have entered an emergency state, implemented closed management, and implemented \"only exit but no entry\" traffic control at all traffic entrances and exits.<\/em><\/p>\n

Strict management and control measures have reduced the overall operating efficiency of the Chinese timber supply chain, which has caused great restrictions on the transportation and production of goods. Many timber transportation has been stagnated and the delivery time has been extended.<\/p>\n

On October 14th, the Chinese port city of Erenhot added 1 newly diagnosed local case. The Chinese side decided to close the Erenhot highway port indefinitely from 07:00 on October 14, 2021. The Erenhot Highway Port is China's open highway to Mongolia, and it is also the main channel and important platform for China's economic and trade cooperation with Mongolia and Russia. The commodities imported at the port are mainly wood, iron ore, coal, paper, pulp and so on.<\/p>\n

Timber prices continue to rise<\/strong><\/p>\n

In order to prevent and control the spread of the epidemic, the traffic control measures adopted by various Chinese provinces and cities have had a significant impact on wood processing and transportation. As a result, many logistics companies have adjusted the freight rates of some trucks on certain routes, which in a disguised way has increased the production costs of Chinese timber companies. Eventually, the unbalanced supply and demand of raw materials, tight supply, and rising prices have caused great pressure on the timber industry in China.<\/p>\n

In this round of timber price increases, demand is part of the reason, and more of it is driven by supply. Firstly, on the demand side, as the situation of \"power cuts\" eased, the timber market has started to work, and market demand has gradually picked up. Second, on the supply side, the current global epidemic has not yet been effectively alleviated, and the recovery of production is relatively slow.<\/p>\n

Under such supply constraints, the rapid growth of China's downstream timber demand has led to insufficient production capacity to support demand, and a long expansion period, which in turn drove the increase in timber prices.<\/p>\n

Since the outbreak, timber prices have been fluctuating. At present, the downstream market demand is weak. In the long run, the price of wood is expected to rise.<\/p>\n

From the perspective of epidemic control, timber processing and transportation will continue to be restricted. From the perspective of supply, with the current rising oil prices, electricity prices, and coal prices, the cost of timber will increase again, and the timber supply chain is expected to remain unstable.<\/p>\n<\/div>\n

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China’s new locally transmitted COVID-19 cases spiked to a near three-month high. 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