Source: Network

 Golden Nine Silver Ten, Mid-Autumn Festival had gone and National Day is coming. Companies in the industry are all "gearing up" and preparing for a big fight. However, for Guangxi wood industry enterprises, it is willing, yet unable. According to Guangxi's enterprises, the shortage of power outages in Guangxi has not been well alleviated, and factories in most areas basically stop working for one day after one day of production. The price of Guangxi eucalyptus raw materials is also rising further.

There are multiple factors behind the price increase of eucalyptus raw materials. On the one hand, domestic eucalyptus resources are mainly concentrated in Guangxi. In recent years, the Guangxi government has continuously strengthened the management and control of eucalyptus planting, at the same time has stricter control on felling.In 2014, the Guangxi Forestry Department issued a notice to reduce the planting area of eucalyptus by 4 million hectares, reducing the proportion of eucalyptus forest area in the total forest area of the region from 13.7 percent to less than 12 percent. Subsequently, many places in Guangxi also clearly proposed to speed up the clearing of fast-growing eucalyptus, resulting in a relatively small area of eucalyptus and a relatively reduced resource.

On the other hand, it is understood that due to the large number of wood processing plants in Guigang, Guangxi province, the local eucalyptus market is in short supply, and the purchase price of eucalyptus in surrounding areas such as Laibin and Liuzhou, both in Guangxi, continues to rise, causing the overall price of eucalyptus in Guangxi to soar. Last year, the price of eucalyptus was 550 yuan/ton, and now it has risen to around 650 yuan/ton.

Raw materials continue to rise in the beginning of the year, logistics costs have increased, and profit margins have become smaller. Coupled with the impact of the economic environment, downstream demand has been cold, and the wood industry has been in continuous conditions this year. However, the production of enterprises in Guangxi is particularly difficult. It is recommended that wood industry enterprises actively grasp the recent "Golden Nine Silver Ten" window, adjust marketing strategies, recover funds, let themselves regain blood, and the market warming!