In January 2020, the GGSC-CN  index registered 48.4% (38.3% for last  January 2019 and 39.1% for  January 2018), a decrease of 8.1% from the previous month, and returned to the expansion range again. It shows the operation status of the superior forest products enterprises represented by GGSC-CN index shrank from last month, as shown in Figure 1.

Figure 1 Trends of GGSC-CN index and China PMI index from February 2019 to January 2020

In terms of the GGSC-CN index, in January 2020, three out of five sub-indexes of GGSC-CN index declined and the other two rose.

The production index registered 50%, a decrease of 8.3% from the previous month, indicating that the production of of superior forest products enterprises represented by GGSC-CN index remained basically the same as that of the previous month.

The new orders index registered 50%, a drop of 20.8% from the previous month, and half of the enterprises' new orders remained unchanged from the previous month. Among them, the new export order index reflecting the foreign trade situation was 56.3%, a decrease of 6.3% from the previous month, back to the threshold again, showing that orders from abroad this month increased compared with the previous month.

The main raw material inventory index registered 56.3%, an increase of 2.1% from the previous month, and once again returned above the threshold, indicating that the raw material inventory of the superior forest products enterprises represented by GGSC-CN index increased from the previous month.

The employee index registered 43.8%, an increase of 2.1% from the previous month, a tightening interval for seven consecutive months, showing that the labor force of the superior forest products enterprises represented by GGSC-CN index decreased from the previous month.

The supplier delivery time index registered 43.8%, a decrease of 2.1% from the previous month, indicating that the supply time of raw material suppliers of the superior forest products enterprises represented by GGSC-CN index slowed down from the previous month.

Challenges and suggestions

Ø Insufficient wood purchases; increased environmental protection inspections, and raw materials cannot arrive on time;

Ø Raw material quality is getting worse and worse, raw material processing technology gets more complicated;

Ø Higher requirements for environmental protection are required.

Commodities in short supply during this reporting period

Juglans Nigra.,Hickory flooring plank, teak, oak, chemical raw materials

Commodities of which the price has increased during this reporting period

Dabema, Teak wood plank,Dipteryx sp., formaldehyde

Commodities of which the price has dropped during this reporting period

Carbamide,karaka, Cylicodiscus sppflooring blanks,Kasai, formaldehyde,Cylicodiscus spp