It is understood that the main import trading countries of China's original timber and downstream products are Malaysia, Indonesia, the United States, Russia and Thailand in turn. Among them, Indonesia, Malaysia and Thailand are victims of the tsunami, and these countries will need a lot of raw wood for their own reconstruction, which will affect the export volume and the price of raw wood.

 

Industry insiders, however, say the tsunami was "the straw that broke the camel's back". One raw timber trader said the tsunami's impact on imports was psychological first. Most domestic producers had stocks last year, but worried about lower imports in the future, motivated exporters pushed up prices.

 

Actually, after the Spring Festival 2004, floor raw material price rises generally, rise in a year to have 10% or so, individual breed reached 20% above even. "After years of excessive deforestation in Southeast Asia, governments in response to environmental pressure have begun to implement policies that restrict the production and export of precious raw timber." "The trader pointed out. In Indonesia, for example, in order to protect the environment and maintain the price of plywood and other raw wood products, the government has temporarily banned the export of logs since January 2002, and permanently banned the export of logs since June 8, 2002. Since the tsunami, reconstruction has led to heavy trafficking of logs.

 

Lu Weiguang, chairman of Shanghai Anxin Flooring Co., Ltd., which has acquired 1,000 square kilometers of forest resources in Brazil and already has a firm grasp of upstream resources, said the price of raw wood this year will be a threshold that separates companies with resources from those without. "I estimate that 40 percent of domestic flooring enterprises will go bankrupt, and for Anxin, the rise in the price of wood is a good news." Lu Weiguang said with a smile.

 

At present, 70% of Essence's raw timber comes from Brazil, 15% from Indonesia, the remaining 10% from Russia, and Africa and Myanmar together account for 5%. Tightening supplies from Southeast Asia are no longer enough to satisfy China's growing appetite for imported raw timber, but Lu's success stories are rare.

 

It is reported, the original timber of Australia, Europe, Africa, America already entered China a few years early, at present import volume is increasing ceaselessly. In Lu Weiguang look "who grasp upstream resources, who can win the market". At present the dilemma of domestic original lumber price, perhaps can be a very good revelation, grasp resources also should disperse purchase channel at the same time.