In recent days, Plywood price in Vietnam is going up dramatically. According to our observation and manufacturing status, there are 3 main reasons which lead to this phenomenon
1) Heavy rains and floods interrupt the production
The rainy season in Vietnam, 4 consecutive storms landed in Vietnam runs from October to early December with almost half the annual rainfall falling in October and November. Due to the rains, manufacturers can not sundry the veneers which is the materials for plywood. Besides, they also can not peel the veneers by themselves because of the wet logs. Other than that, the central provinces of Vietnam where have a large acrage of Acacia and Eucalyptus forests are facing fatally severe storms and floods. For these reasons, the factories who do not have enough back up veneers for production, it inevitable to buy veneers from other suppliers. It leads to another problem…
2) China is importing large quantities of wood veneers from Vietnam
According to our observation, many Chinese traders and their Vietnamese Representatives are buying up all kinds of wood at up to 15-20% higher prices than local buyers. It causes the shortage of wood supply and leads to a raise around 20$/m3 at materials price and interruption of many Vietnam Plywood factories.
3) Shortage of containers drives spike in shipping rates
Freight carriers are facing a shortage of shipping containers amid a wave of demand for delivery by sea, helping drive up rates and increasing supply chain costs for some businesses across Asia. Triton International, one of the world’s largest container leasing firms, said in a presentation to investors last month that pick up in demand for its containers had sped up in the third quarter and utilization was nearly at full capacity . As our records, shipping rates to Middle East has increased by 250 USD over the past month and shipping rates to other markets such as Korea, Malaysia,… keeps soaring every week.
4) Unfavorable prices of wood veneers deter Wood Peeling Facoties and Forest Growers from exploitation
It is clear that in last 2 years, the price of plywood and wood veneers has been decreased. Together with the raise in labour cost, Forest Growers and Wood Peeling Factories have barely no benefits. For that reason, they reduce their capacity and wait for the good price. Over time, there are less available wood veneers in the market. As a result, when the demand surges, the price absolutely goes up due to the shortage of veneers in the market. As these problems arise, only Plywood Exporters who have a huge financial ground, reputation and professional services can ensure the shipment time as promised. It is also the good time for Importers to filter out the competent suppliers Vietnam plywood who can accompany with in a long run, especially in these such chaotic times.
TRUST & SPEED is 2 out of 6 our core values, FOMEX always focus on delivering the promises with customers and also never stop improve ourselves to bring to them-our FRIENDS the best things, exceeding their expectations. With the strong financial potential and high ethics, FOMEX ensure that you can firmly put your faith in us, we promise to deliever the right products, best price at the fastest speed.