In February 2020, the production and operation situation of forestry industry has been greatly affectedby COVID-19.GGSC-CN  index registered 14.1% (32.1% for last January 2019 and 41.3% for January 2018), a decrease of 34.3% 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 March 2019 to February 2020

Regarding the GGSC-CN index, in February 2020,four out of five sub-indexes of GGSC-CN index declined and the other one rose.

The production index registered 0, a decrease of 50% from the previous month. Affected by COVID-19, all enterprises were closed. Production has been dropped from the previous month. It indicates that the production of of superior forest products enterprises represented by GGSC-CN index decreased from the previous month.

The new orders index registered 0, a drop of 50% from the previous month, and most enterprises reported there were no new orders. Among them, the new export order index reflecting the foreign trade situation was 9%, a decrease of 47.2% from the previous month, above the threshold again, showing that orders from abroad this month decreased compared with the previous month.

The main raw material inventory index registered 36.4%, an increase of 36.4% from the previous month, and once again returned below the threshold, indicating that the raw material inventory of the superior forest products enterprises represented by GGSC-CN index decreased from the previous month.

The employee index registered 18.2%, an increase of 25.6% from the previous month, a tightening interval for eighth 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 45.52%, a decrease of 1.7% 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 There is a shortage of disinfection materials, and there is insufficient guarantee supply to fight the outbreak of COVID-19.

Ø Not enough companies staying operating.

Ø The supplier is not working, so it is difficult to get the goods

Ø Juglans Nigra. materials are tight, hard to purchase.

Ø Poor logistics

Commodities in short supply during this reporting period

Juglans Nigra., formaldehyde, carbamide, 1210 long Juglans Nigra., 450 * 90,Dipteryx sp., 1800 long teak, 2100 longsenya

Commodity of which the price has increased during the reporting period

Carbamide, paraffin, waterproofing agent

Commodity of which the price has dropped during the reporting period

Formaldehyde, mixed firewood, eucalyptus firewood, pine firewood, methanol, melamine