In October 2021, China's PMI index registered 49.2%, a decrease of 0.4 percentage points from the previous month, operating in the shrink range (below 50%) for 2 consecutive months, indicating that the growth rate of manufacturing industry slowed down. This month, the domestic orders of most timber manufacturing enterprises have increased and the production has increased, but the international orders have decreased. Due to the rapid rise of domestic energy prices such as electricity and coal, the price of chemical raw materials has risen sharply, and the enterprise cost has continued to increase. Most enterprises can only digest this part of the cost internally.The GGSC-CN comprehensive index for October registered 56.2% (44.2% for last October and 48.9% for October 2019), an increase of 9.0 percentage points from the previous month, and was above the critical value of 50%. It shows that the operation of the superior forest products enterprises represented by GGSC-CN index expand from last month. See Figure 1 for more details.
Figure 1 GGSC-CN index trend from November 2020 to October 2021
Ø The transportation cost is too high.
Ø The price of raw materials, especially chemical materials, changes too much.
Ø The quality of some raw materials is unstable, affecting product production and sales, and there is no better supplier to choose.
Ø There is a shortage of pine core board.
Ø Raw materials in the whole import chain are in short supply. It is suggested to further improve the relevant links of the company and improve the order system, so that enterprises can accurately prepare raw materials in advance and tide over the difficulties in special periods.
Products in short supply
Merbau,Fiberboard, Melamine, Ebony, Pine core board.
Commodity of which the price has been increased
Dipteryx, Tauari,Eucalyptus Planks,Fiberboard, Colored paper, Wear-resistant paper, Melamine, Formaldehyde, Urea, Hexyl, Glue, Core board, Paraffin, Waterproof agent
Commodity of which the price has been decreased
China fir, Miscellaneous firewood，Eucalyptus firewood，pine firewood, Oak
As for the GGSC-CN index, in October 2021,the two sub-indexes of GGSC-CN increase and three decrease.
The production index registered 61.1%, an increase of 18.3 percentage points from the previous month, and above 50% after keep decreasing for three months. It shows that the production of superior forest products enterprises represented by GGSC CN is better than that of last month.
The new order index registered 72.2%, an increase of 29.4 percentage points from the previous month, reflecting the ability of enterprises to obtain orders is stronger than last month.Among them, the new export order index reflecting international trade registered 38.9%, an decrease of 18.3 percentage points from the previous month,, showing that orders from abroad this month is decreased from last month.
The main raw material inventory index registered 50.0%, an decrease of 7.1 percentage points from the previous month. It shows that the raw material inventory of the superior forest products enterprises is almost the same as last month.
The employment index registered 55.6%, an increase of 1.6 percentage points from the previous month. It shows that the employment of the superior forest products enterprises is more than that of last month.
The supplier delivery time index was 27.8%, an decrease of 22.2 percentage points from the previous month. It indicates that the supply time of raw material suppliers of the superior forest product enterprises is slower than last month.