This year, China's building materials and decoration market is still in the development of the "golden age", the timber market will increase the annual consumption. Whether from the quantity or quality point of view, the domestic production of wood are far from meeting the demand. At present, the most viable approach is to import wood in addition to the state's stepping up efforts to create planted forests, adopting various timber conservation measures and developing wood substitutes.
Therefore, any change in the international timber market will have an impact on the domestic market. Beijing Market Association, Liu Chen, Secretary-General of the home branch that changes in the price of wood throughout the home decoration industry a great impact, such as cabinets business. As the original cabinets generally larger profit margins in the wood price changes, most of the cabinet to reduce profits to ensure sales; and as some furniture companies in order to seize the market, and some furniture prices do not rise or fall.
China Index Research Institute Home Research Center is expected in 2007, timber prices will gradually decline, the overall increase will not exceed 8%, timber prices will gradually stabilize. The floor prices temporarily reduced the end of raw materials, substrate prices led directly to the floor price increase.
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