In June 2022, with the reduction of the impact of the epidemic and the gradual increase of enterprise orders, the abundant growth momentum of China's economy soon emerged. This month, China's PMI index registered 50.2%, an increase of 0.6 percentage points from the previous month, back to above the critical value of 50%, indicating the overall recovery of the economy is more obvious. Due to the rainy season, the resource procurement activities of wood processing and manufacturing industry have decreased, and the recovery of orders and production is not ideal.The GGSC-CN comprehensive index for June registered 30.7% ( 53.3% for last June  and 55.0% for June 2020), a decrease of 6.4 percentage points from the previous month, and was below the critical value of 50% for four months. It shows that the operation of the superior forest products enterprises represented by GGSC-CN index shrink from last month. See Figure 1 for more details.

Figure 1 GGSC-CN index trend from July 2021 to June 2022 

Challenges 

Ø  Poor logistics and high costs.

Ø  It is difficult to purchase high-grade European rubber raw materials.

Products in short supply 

European rubber, P.macrocarpus Kurz.

Commodity of which the price has been increased 

Tauari , European rubber, urea, composite raw materials.

Commodity of which the price has been decreased 

Taun, oak, melamine.

As for the GGSC-CN index, in June 2022, two sub-indexes of GGSC-CN flat, three decrease.

The production index registered 35.7%, same as the previous month,and being below the critical value of 50% for three months,. It shows that the production of superior forest products enterprises represented by GGSC CN is less than that of last month.

The new order index registered 21.4%, a decrease of 14.3 percentage points from the previous month, reflecting the ability of enterprises to obtain orders is worse than last month.Among them, the new export order index reflecting international trade registered 28.6%, a decrease of 14.3 percentage points from the previous month, decline of export orders needs to be paid attentions.

The main raw material inventory index registered 28.6%, a decrease of 7.1 percentage points from the previous month. It shows that the raw material inventory of the superior forest products enterprises is less than that of last month.

The employment index registered 35.7%, a decrease of 7.1 percentage points from the previous month. It shows that the employment of the superior forest products enterprises is less than  that of last month. 

The supplier delivery time index was 35.7%, same as the previous month. It indicates that the supply time of raw material suppliers of the superior forest product enterprises is much more slowly than last month.