In February 2020, China’s manufacturing purchasing managers index (PMI) was 35.7 percent, down 14.3 percentage points from the previous month. The furniture industry was also affected.
Impact of the epidemic situation on the furniture industry
This paper analyzes the supply end, demand end, import and export end, and production end of the furniture manufacturing industry, and expounds on the impact of this epidemic on the furniture industry chain.
[ supply-side ] the supply of raw materials is less affected by shocks and prices are generally stable
- Timber supply has not been significantly cut off, the overall price is relatively stable
The raw materials used in the furniture industry in China mainly include wood (including log and board), leather, fabric, rattan, metal, glass, chemical raw materials, and so on. At present, the log source of the furniture industry is mainly domestic forest felling and overseas import.
There are fixed targets of cutting in domestic forest area every year, mainly cutting the economic forest and fast-growing forest, relatively less affected by the epidemic situation. However, the recent import of logs such as high-end mahogany supply may be affected by the epidemic (such as the closure of Vietnam and so on).
Nor is there a clear shortage of supplies. Domestic plate production enterprises are mainly located in Zhejiang, Fujian, Guangxi and other provinces, not the focus of the epidemic region, now gradually resumes work.
The plate-listed companies (Rabbit Bao Bao, Fenglin Group, Yong’an forestry, etc.) dynamic point of view, have not issued a suspension notice. Overall plate production and supply normal, stable market supply, the timber trading center trading prices and trading volume fluctuations to a small decline in the main.
2. Polyurethane: affected by the recent oil price, the price has declined
Polyurethane is an important raw material for sofa and bed furniture. MDI (diphenylmethane-4,4’-diisocyanate) is used for sofa and bed leather, and TDI (toluene diisocyanate) is used for mattresses.
The domestic polyurethane manufacturers are numerous, the supply is stable, the price is mainly affected by the upstream oil price and the big factory production plan. At the same time, polyurethane has a wide range of uses, most industries have procurement, the procurement of the furniture industry is more on the market. Polyurethane prices fell slightly due to the recent downturn in the oil market.
On March 9, the market price of the domestic TDI in eastern China was 11,000 yuan/ton, down 4.06 percent from December 31, 2008. The price of MDI was 14,866 yuan/ton, down 7.08 percent from December 31, 2008.
3. equipment, accessories manufacturers to resume work in an orderly manner, the overall impact is not big
Domestic furniture and equipment manufacturers are numerous, widely distributed, mainly in Guangdong, Henan, Zhejiang, Sichuan, and other provinces, the above areas are in an orderly resumption of work, supply gradually restored.
Hardware, paint, decorative plates, and other manufacturers are also numerous, mostly in Guangdong, Zhejiang, Fujian, and other places, are also in an orderly resumption of work.
In general, the outbreak of furniture industry equipment and accessories supply has little impact.
