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2025-03-25 09:35:38View:

A 50% drop, both demand and raw materials in the Guangxi artificial board market are under pressure!

For Guangxi's artificial board production enterprises, 2024 is destined to be difficult. Words such as' sluggish real 

estate market 'and' sharp drop in sales of artificial boards' constantly stimulate every nerve of businesses.

 Especially in the past two months, the artificial board market in Guangxi has shown signs of depression.


Officials from the Guangxi Forestry Import and Export Trade Workstation revealed to reporters that the biggest

 challenges currently faced by Guangxi's artificial board manufacturers are low downstream demand and high 

upstream costs. On the one hand, under the influence of negative factors such as the continued downturn in 

the real estate market, the efficiency of the artificial board industry in Guangxi has significantly declined this year,

 especially during the traditional off-season in the past two to three months. The overall sales volume of artificial

 boards has been dismal, with some companies experiencing a year-on-year decline of over 50%. Among various types, 

the construction formwork has the largest reduction in volume, with some companies experiencing a decline of more than 70%.


On the other hand, since the beginning of this year, several pulp mills have been added locally in Guangxi. 

These pulp mills have purchased a large amount of raw materials such as eucalyptus trees locally, which has directly led 

to the continuous rise in eucalyptus wood prices in Guangxi and subsequently pushed up the production cost of artificial boards.


The biggest problem currently facing manufacturers is that artificial boards cannot move at all, and inventory backlog is

 becoming increasingly serious. Manufacturers' funds are almost all deposited in their products and cannot be realized. In addition,

 fixed monthly expenses such as rent and labor put a lot of pressure on manufacturers. Moreover, the rise in eucalyptus raw

 materials directly drives up the production costs of artificial boards, and the increase in costs also increases the financial

 pressure on manufacturers, which undoubtedly adds insult to injury for already struggling manufacturers.


However, industry insiders are still not optimistic about the market trend of artificial boards in the future. Industry 

insiders have pointed out that whether the artificial board industry can recover mainly depends on whether the real 

estate market is hot. If the real estate market recovers, the artificial board market will naturally follow suit. However,

 from the current overall situation of the domestic market, the real estate market still lacks the stimulation of new 

favorable policies, and the possibility of future recovery is very small. It is difficult to be optimistic about the future

 of artificial boards in Guangxi due to its impact.


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