The price of domestic imported timber may rise due to the rise of oil price

Since this year, the domestic refined oil price has experienced 10 rounds of increase and 1 round of decrease. It is understood that the new round of oil grid adjustment is expected to be carried out at 24:00 on June 28 of this month. As we all know, most domestic timber transportation depends on truck transportation. The simultaneous rise of gasoline and diesel prices inevitably leads to the increase of transportation costs for timber traders.

Increase in timber transportation costs

The rise in oil prices has not only affected China's timber transportation, but also troubled foreign countries.

The current price structure is not ideal for many timber traders. In this case, the sawmill will not prepare too much inventory. It is reported that the timber mills in Michigan and Maine have almost no timber inventory at present, and even many sawmills are planning to reduce production capacity.

The increase in fuel prices has greatly increased the cost of wood transportation. In addition, under the trade and economic restriction measures implemented by Russia and Europe and the United States, the shortage of crude oil supply in many regions of the world has led to an increase in fuel prices. At present, many countries are seeking crude oil supply from other regions.

Additional fuel surcharge for timber

Before the oil price returns to the normal level, for the timber traders, the increase in transportation costs needs to be shared by other parties. In response to the rise in fuel prices, foreign industry personnel proposed to provide fuel surcharges for wood consumption facilities to offset the additional fuel costs and transportation costs required for equipment in logging wood.

However, for China's timber importers, the fuel surcharge for timber production and transportation will be increased, and the price of timber eventually transported to China may rise. With the rise of domestic oil price, the transportation cost of timber transported back from abroad has also risen, making it even more difficult for domestic timber traders.

The price of imported African timber will rise later

Although Africa is the location of major crude oil producers, the African continent has limited capacity to convert crude oil into fuel for cars and trucks.

At present, African countries are considering whether to limit local fuel prices through regulation, but this may lead to fuel supply shortage or further price rise.

China carries out timber trade with Cameroon, Gabon and other regions in Africa. Now, the transportation price including timber and other freight has reached a rapid rising trend. According to this situation, it is expected that the cost of African timber such as OKUMAN and zebra imported by domestic timber traders will rise in the following period.

For the timber industry, most of the increased costs need to be borne by the Timber Merchants themselves, and a few costs will be incorporated into the timber sales price.

At present, whether to impose fuel surcharge for wood transportation abroad has not been formally determined, but domestic timber traders still need to be prepared for the rise of transportation costs - although the oil price has a downward trend this week and industry personnel say that the next round of oil price adjustment may be lowered, it is expected that the oil price will not return to the previous normal level in the short term.