It is expected that the heat of plywood trade in Europe will decline in the second half of the year

According to a survey of European plywood importers, the heat of European Plywood trade is expected to decline in the second half of 2021. Although in the coming months, the broader market outlook has not changed much compared with the current terms of trade.

However, under some limited conditions, there may be a trend that the heat of trade begins to decline in the first quarter of 2022, and this trend may even come earlier.

One importer said: "due to the continued production constraints caused by the recovery of demand and the pandemic, we have seen unprecedented raw material costs in all industries, not just wood products. It is estimated that this has pushed up the construction cost of the average house in Europe by 25%. Therefore, families who previously planned to spend 400000-500000 euros on their houses now have to spend 500000-600000 euros. This will not only have an impact on financing, but also be unsustainable. Coupled with the gradual reduction of government stimulus measures, we will not be surprised by the economic slowdown in early 2022. "

The novel coronavirus pneumonia control is still unknown, and it may also bring more pressure to the price and logistics of the product. However, there are signs that the supply and demand of the market will become more consistent in the future, and the price will leave the peak. Our customers usually purchase goods for the next three months, but business is becoming more and more difficult.

From October 2020, people are more hesitant because they don't want to order so long in advance, and then see the product price fall, so they have to cancel the order again. Some people have been talking about the price correction of plywood products in Brazil and Russia. Of course, what we hope is to adjust gradually, rather than halve the doubled price overnight. This may really undermine the stability of the market. We can only wait and see. At the same time, maintain business tension, maintain customer communication and don't make excessive commitments.