Increased demand in the home market drives wood consumption

Wood has the advantages of light weight, high strength-to-weight ratio, good elasticity, impact resistance, rich and beautiful texture, and easy processing. It has been listed as an important raw material since ancient times. Due to low energy consumption, low pollution and renewable resources, the timber industry also plays an important role in the national economy. Now the products have been developed from the original processing of logs, such as poles, pits, sleepers and various sawn timbers, to finished products such as building components, furniture, vehicles, ships, cultural and sports goods, packaging containers and other wood products. Wood remanufactured products are all kinds of wood-based panels, glued wood, etc., so that the wood industry forms an independent industrial system.

1. Industry chain analysis

The upstream industry supplies raw materials and processing equipment to the wood processing industry, which is the root of the development of the timber industry. It mainly includes forest planting and forest conservation industry, adhesive industry and wood processing machinery industry. The downstream industry is a demand side of the wood processing industry, and its development has a direct impact on the wood processing industry. The high growth of market demand in the downstream industry can lead to high growth in sales revenue in the wood processing industry; the downstream industry is in a downturn or stagnant state, which can lead to shrinking sales in the wood processing industry and even shrinking or disappearing in the industry. The downstream industries mainly include the architectural decoration industry, the wooden furniture manufacturing industry, the wood pulp manufacturing industry, the cultural and educational office supplies industry and the musical instrument manufacturing industry. The structure of the industrial chain is shown in the following figure:

Figure 1: Schematic diagram of the industrial chain structure of the wood processing industry

2. Increase in new construction area of ​​real estate to increase timber sales revenue

The real estate industry plays a crucial role in driving the growth of China's economy. Specific to the wood processing industry, new housing needs renovation, commercial housing requires floor, sofa, bed, etc. Office buildings require desks, chairs, floors and other office supplies. Among these commodities, wooden furniture and office supplies account for a large proportion, and the demand for these commodities directly stimulates the development of the wood processing industry.

From the sales income of the wood processing industry and the ratio of the newly started area of ​​real estate, the ratio of the annual sales revenue of the wood processing industry to the new construction area per year has been rising since 2010, and it is estimated that it will reach 1413.5 yuan per square meter in 2017.

Chart 2: 2010-2017 China's real estate development new construction area and wood processing industry sales revenue ratio chart (unit: yuan / square meter)

In 2016-2017, the new construction area of ​​China's housing has increased for two consecutive years; in 2016, it reached 17.81 square meters, an increase of 7.0%, and the growth rate increased by 0.1 percentage points. Based on the estimated annual sales revenue of the wood processing industry in 2017 and the ratio of new construction area per year, the new construction area of ​​118 million square meters in 2017 will bring about sales of about 166.8 billion yuan for the wood processing industry.

Figure 3: New construction area of ​​real estate development in China in 2010-2017 (unit: 100 million square meters)

3, the expansion of furniture demand drives the consumption of the timber market

The wooden furniture manufacturing industry is one of the major downstream industries in the wood processing industry. The wooden furniture manufacturing industry requires various wood products, wood-based panels, veneers and fiberboard products. The development direction of the wooden furniture industry and the transfer of the region directly affect the development trend of the wood processing industry.

In recent years, China's real estate market is strong, urbanization is accelerating, and with the improvement of national living standards, living conditions continue to improve, disposable income continues to grow, support people to increase the demand for household products, improve the taste of furniture consumption, and continue to consume. Being excavated. From 2011 to 2016, the main business income of China's furniture manufacturing industry continued to grow; from January to November 2017, the main business income of furniture manufacturing industry was 828.11 billion yuan, a cumulative increase of 8.8% year-on-year; total profit was 49.59 billion yuan, a cumulative year-on-year increase of 7.1%. %.

Chart 4: Revenue from the main business of furniture manufacturing industry in 2011-2017 (unit: 100 million yuan,

China's wood products are relatively inexpensive and quality guaranteed. They not only meet domestic needs, but also are loved by international consumers. More than 100 countries in Asia, North America and Europe import wood products from China, and their export volume ranks among the top in the world. Such a huge demand is one of the reasons for the shortage of supply in the timber market. From 2011 to 2016, the export delivery value of China's furniture manufacturing industry continued to increase; from January to November 2017, it was 172.24 billion yuan, a year-on-year increase of 7.06%.

Chart 5: Export delivery value of furniture manufacturing industry in 2011-2017 (unit: 100 million yuan, %)

Coupled with the improvement of the functional, design, space utilization, and personalization requirements of furniture products, the acceptance of the whole house customization market has increased year by year. Most of the whole-house custom companies have adopted the concept of “whole wood”. The whole house customization and the success of the whole house decoration make the whole house customization become the new darling in the consumer market, and it has become the other big in the timber market. Consumption.

(Source: Sina News)

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