Mills in Guangdong feel policy pinch
Wednesday 27 Nov 2019Chinese mills in Guangdong region production reducing or ceasing production - Many timber processing plants in Guangdong Province have stopped or limited their production recently due to local environment protection policy and supervision and this will likely lead to a sharp rise in the price of construction timber in the domestic market.
November is the peak season for Guangdong wood processing enterprises and reduced production will cause delays in deliveries to construction projects. Timber processors are being encouraged to move to Huizhou (also in Guangdong Province), but many have not yet done so.
Efforts are being made to meet the shortfall from Belt and Road Initiative countries, but this is only a stopgap measure. Local analysts are telling traders they should exercise caution in signing contracts in Guangdong province to avoid large increases in production costs. At the same time, customers should place orders early to ensure adequate supplies.
Source ITTO TTM Report
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