Chinese Plywood Market Summary in 2020

Impact of Covid-19

The Covid-19 has impacted plywood production in the first season of 2020. There was very small production activity after the Chinese New Year in 2020.

Many Chinese plywood factories haven’t started their production until April or May 2020.

The Covid-19 hasn’t affected the production after May 2020 since the virus was almost elimated from Linyi and Xuzhou, which is the main plywood production hub of China.

Pollution Control in Winter 2020

The plywood production in Xuzhou and Linyi has been paused a few times in winter 2020.

The main reason for this policy is air pollution control policy from central government of China.

Since plywood is an industry listed on the pollution industry, whenever there is bad weather, plywood factories are asked to suspend their production for at least three days.

The suspension of plywood production accumulated to 20 days in the 2020 winter.

Civil Construction Boom Worldwide

The Chinese government invested a lot of money in civil construction to boost the economy.

Plywood, as a versatile building material, has benefited from the construction boom. Main plywood benefiting from construction business:

• Film Faced Plywood
• Marine Plywood

Not only China, but other countries like Australia, New Zealand, and Southeast Asian countries are also growing in the demand of plywood.

Canada anti-dumping on Chinese hardwood plywood and non-structural plywood

As written in one of our articles, Canada has followed the lead of the USA and started an investigation on imported Chinese plywood.

The affected product is mainly decorative hardwood plywood and non-structural plywood. Structural plywood is excluded from the anti-dumping.

USD/RMB exchange rate damage Chinese plywood export

The USD/RMB rate has dropped from 7.2:1 to 6.45:1 in 2020. That is an 11.6% increase in plywood export price.

See latest USD/RMB exchange rate.

Plywood Export Stable

Even though there are many difficulties in the year 2020, China has seen its plywood export almost the same with 2019. This is a great achievement under the impact of the Covid-19 global pandemic.