Big market - U.S. timber prices fell rapidly, and economists said there were still supporting factors

Date:2021-07-15 Views:150

Us timber prices fell rapidly, and economists said there were still supporting factors.


On the afternoon of July 19 Eastern time, the price of timber futures once fell to US $524.7 per thousand board feet, about 68% lower than the peak of US $1670 per thousand board feet on May 7. Timber prices rose sharply this spring and reached an all-time high in May. After that, they fell rapidly in the past few weeks. Timber futures have fallen to the lowest level in seven months.

Earlier this year, wood processing plants were once closed, resulting in reduced supply. At the same time, the demand for new and improved housing in the United States surged, and the imbalance between supply and demand pushed wood prices up rapidly. However, in the past two months, with the restart of the U.S. economy, more and more Americans choose to go on vacation instead of building and decoration. At the same time, wood processing plants are also actively returning to work to improve supply, so wood prices have fallen rapidly.

For the future trend of wood prices, Dustin jalbert, a senior economist at fastmarkets, a global commodity price reporting agency, pointed out that as wood prices tend to stabilize and are expected to return to the level before the epidemic, there will be more fluctuations in the future.

Market share trend forecast of epidemic floor industry (North America, Europe and Asia Pacific) after the release of research institutions.

It is predicted that the scale of the global flooring market is expected to grow again at a considerable growth rate. As local governments are increasing investment in construction and infrastructure, some regions are experiencing rapid urbanization. In addition, the trend of smart city is also rising, and residents' demand for high-end infrastructure is increasing.

Covid-19 has a far-reaching impact on the Asia Pacific flooring Market: one impact is the sharp decline in regional construction activities. The government has implemented strict blockades and movement restrictions, which has led to the decline of the business of construction companies and affected the procurement of raw materials and labor. However, by 2020, segments such as non elastic flooring will account for more than 40% of the total market share in the Asia Pacific region.

Resilient flooring has a good development momentum in Europe: it is predicted that by 2026, the resilient flooring segment will occupy an important European market share. Resilient flooring can be manufactured as coil or flexible sheet to provide a lot of comfort. It has a variety of textures and colors, and also has dust-proof performance. It can insulate heat and reduce noise in the room. It is very easy to install, which makes it the preferred floor type for customers.

Housing construction promotes the German market: the national housing construction level will reach the peak in 2019. It is expected that Germany will occupy more than 20% of the European market in the next few years. The German government has announced plans to provide $5.9 billion to promote housing construction. This will help to build more than 100000 houses in the next 2-3 years. Due to the rapid development of global urbanization and industrialization, the overall demand for residential and industrial complex construction will stimulate the growth of demand for high-quality and durable flooring solutions.

Construction activities in North America are growing rapidly: the valuation of the North American flooring market is expected to exceed $55.04 billion by 2027. Many companies and governments in North America are increasing investment in the construction industry and encouraging the development of new technologies and products. This has had a positive impact on the development of regional industry.(Graphical Research)

Transferred from: domotexasia ground materials exhibition