Recent field surveys of major timber distribution markets in Foshan and Heshan, Guangdong Province have revealed a growing supply shortage of rubberwood panel products, driving market prices upward across the board. This trend has subsequently pushed up prices for raw material boards as well.
Multiple processing factories report that panel supply is particularly tight, with prices for various grades of rubberwood boards - especially the 4/8" specification - experiencing across-the-board increases. To maintain production continuity, factories are actively sourcing raw materials, further driving up prices for this specification. In comparison, market prices for 5/8" rubberwood boards have remained stable thus far, showing no significant fluctuations.
This price surge stems primarily from shifts in supply and demand dynamics. On the supply side, prolonged rainy seasons in Thailand - China's primary source of rubberwood imports - have significantly hampered logging operations and transportation. With local processing capacity declining, China's imports during the first seven months of this year dropped by 12.7% year-on-year, representing a reduction of approximately 380,000 cubic meters. Additionally, rising raw material costs in Thailand have led to a 2% increase in export prices to China.
On the demand side, while the domestic rubberwood supply remained relatively adequate in the first half of the year, shortages emerged for some popular specifications (particularly 4/8" and 5/8" BC-grade and ABC-grade materials), triggering price fluctuations during shortage periods. However, the combination of rising prices due to shortages of mainstream specifications and weak downstream demand has created a market contradiction, leading to decreased trading activity. The phenomenon of "nominal prices without actual market transactions" characterized much of the rubberwood market in the first half of the year.
Market analysts predict that if supply constraints persist, rubberwood panel prices may continue to rise in the coming months, with the 4/8" specification expected to lead the price increase trend.
