Development And Analysis Of China's Flooring Industry in 2021
Looking back on 2021, on one side are the opportunities brought by consumption upgrades, the rise of the new middle class, and new retail, and on the other side are the challenges brought about by the spread of the epidemic, frequent problems in international trade, and difficulties in customs transportation. While environmental protection policies and dual-carbon goals guide the development of the industry, they have also become an unavoidable problem for the flooring industry.
1. The overall price of wood flooring shows a moderate growth
The supply of wood-based panel raw materials in my country is increasingly tight, and the sources are diversified. Artificial fast-growing forests represented by eucalyptus and poplar are still the main raw materials for China's wood-based panel production. Raw materials are used to further mature. Wood-based panels are produced in 26 provinces (autonomous regions and municipalities) across the country, of which Shandong, Jiangsu, Guangxi, Anhui, Hebei, Henan, and Guangdong provinces (regions) have a production volume of over 10 million cubic meters. There are more than 16,000 wood-based panel enterprises in the country, a year-on-year increase of 11.6%. With the rapid development of China's wood-based panel industry, a number of large-scale wood-based panel backbone enterprises or enterprise groups continue to emerge.
Due to the limitation of raw materials, the flooring market is obviously cyclical. The wood floor with plank as the main raw material is especially obvious. In recent years, new types of floors such as PVC floor, wood-based panel, and floor heating floor have appeared continuously, resulting in a wider range of floor materials and a greater impact. 2021 will be different from the past. With the skyrocketing commodity prices, the price of wood will rise "in response". The price of 3-meter white pine, a wood raw material produced in Jiangsu, has risen by 600 yuan per cubic meter in two months, an increase of more than 35%, and some increases. There will be downs and downs. When the increase reaches saturation, it will be restricted by the market and rebound, and substantial price reductions are inevitable.
Traffic and logistics restrictions. Due to overseas imports and the mutation of the virus, the epidemic has recurred in China. Guangdong, Hunan, Heilongjiang and other places are restricted by the epidemic. For products such as flooring, which are delivered by container transportation, the cycle from ordering to delivery is long. However, due to the limited logistics, the entire product delivery cycle is prolonged and customer satisfaction is reduced, which is generally unfavorable for the development of the entire industry. In terms of foreign logistics and transportation, due to the continued high demand for wood and products, the export of flooring products has maintained a strong situation. In addition, the price of raw materials has eased at the end of the year, which has led to an increase in export growth. However, my country is still a large country with flooring production capacity. However, the new mutation of the epidemic has made international import requirements strict, and the congestion of international ports has not yet eased.
Lumber is the main import item for the flooring industry, and lumber is one of the most outstanding commodities. It hit a record high of $1,600 per thousand board feet in May and climbed above $1,100 per thousand board feet again in December. Such raw materials are easily affected by foreign weather, manpower and other factors, so there are many changes. At the end of the year, the floods in western Canada led to the interruption of front-end transportation. The roads and railways in British Columbia were washed away by the floods, causing the price of lumber to soar. As the largest exporter of lumber in the world, Canada's pricing affects the profits of many domestic processors and companies.