China is buying German timber in large quantities!

The most important sales market for German log exports in 2020 is China, which accounts for half of the total export volume.

An insider in the medium-sized construction industry told reporters that China is buying German timber. According to a person familiar with the matter: “German construction companies need to pay about 200% of the surcharge to obtain wood from German manufacturers. China is procuring all materials from Germany. Not only the trunk, but also the construction wood (KVH wood) are sold to Chinese people."


On the other hand, medium-sized companies complained about vacancies in the supply of sewer pipes from China. This particularly affects small and medium-sized construction companies. Large construction companies will not have this problem because they can easily pay the surcharge by passing the cost on to the customer. The advantage of large companies is that their customers are usually countries. They will get lucrative public works contracts. The possibility of bankruptcy of SMEs in the German construction industry is not ruled out.


It is not clear whether there is a solution for the suspension of construction materials from China. It is conceivable that after the current epidemic is over, China will likely hope to promote economic growth through the construction industry, so they need construction materials produced in the country.


According to the "Federal Statistics Office" report on German log exports in 2020: "The most important sales market for log exports in 2020 is China: accounting for half of the total export volume (50.6%, 6.4 million cubic meters). This ratio has been since 2015. Significant increase over the years (at the time 10.1%). Austria (19.2%/2.4 million cubic meters) and Belgium (9.2%/1.2 million cubic meters) followed closely behind."


From China's massive purchase of German milk powder ten years ago to the current purchase of wood, there are always some people in Germany who are emotionally dissatisfied with China. But isn't this the law of the market economy?


Under the system of full competition in the market economy, German small and medium-sized construction companies are in a crisis of the century, which is also a turning point for the healthy adjustment of the industry.








You May Like

Subscribe

Discover the latest furniture products

Customer Service

jjgle@imsinoexpo.com