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Chinese plywood producers unable to push through price rises
Asia Observatory

10 April 2008

Chinese plywood producers unable to push through price rises

According to agents and importers, price rises announced by Chinese plywood producers prior to production shutdowns around the Chinese New Year festival have not been implemented. As late as the end of January, manufacturers had reported their desire to pass on rises in raw-material, energy and transport costs to buyers and to compensate for profit losses incurred through developments on the currency markets. However, according to reports from the import trade in recent weeks, these efforts of the producers were met in Europe with continuing weak demand, indeed for some ranges noticeably declining demand. Importers report that the price level for poplar plywood from China is currently around the January level, while for Chinese beech plywood there are reports of offers which fall significantly below the price level prevailing at the beginning of the year. At the same time, various importers draw attention to the fact that fob prices in China have remained relatively steady. The lower-priced c+f offers are presumably therefore primarily