The detailed data of the GGSC-CN Index Report for March 2020 is as follows. The report analysis is based on the data submitted by registered companies. The data collection and analysis are still in the testing period, thus it should not be used as investment basis, but for reference only.

In March 2020,COVID-19 pandemic  tended to slow down  in China, but overseas epidemic situation is still severe, and the domestic demand in the forestry industry gradually recovered, but the international market has been greatly impacted, and export oriented enterprises were hit the worst. GGSC-CN index registered  70.7% (45.8% for last March and 63.9% for March 2018), an increase of 56.6% 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 expanded from last month, as shown in Figure 1.

Figure 1 Trends of GGSC-CN index and Chinese national PMI index from Apr 2019 to March 2020

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

The production index registered 92.9%, a decrease of 92.9% from the previous month. Affected by COVID-19, all enterprises were closed in the last month, this month, 86% of sample companies have been open. Production has been significantly increased. It indicates that the production of superior forest products enterprises represented by GGSC-CN index increased from the previous month.

The new orders index registered 85.7%, an increase of 85.7% from the previous month. In the last month, no companies have received new orders. The great growth of new orders in this month indicates that most companies start receiving new orders, instead of actual growth of new orders. Among them, the new export order index reflecting the foreign trade situation was 42.9%, an increase of 33.8% from the previous month, still below the threshold, showing that orders from abroad this month increased compared with the previous month.

The main raw material inventory index registered 35.7%, a drop of 0.7%, below the threshold for the 2nd continuous months, indicating that the raw material inventory of superior forest products enterprises represented by GGSC-CN index decreased from the previous month.

The employee index registered 64.3%, an increase of 46.1% from the previous month, showing that the labor force of the superior forest products enterprises represented by GGSC-CN index increased from the previous month. Staff of most enterprises went back to work.

The supplier delivery time index registered 35.7%, a decrease of 9.7% 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 Market still remains quiet and sales are difficult.

Ø Due to COVID-19 pandemix, it is difficult to purchase wood, carbamide, formaldehyde and other raw materials. It is recommended to revitalize the economy of various industries as soon as possible.

Commodities in short supply during this reporting period

Manufacturing companies: Juglans Nigra.,Hickory flooring plank, wood,carbamide, formaldehyde

Commodities of which the price has increased during this reporting period

Dabema, teak flooring planks, carbamide

Commodities of which the price has decreased during this reporting period

Kraft paper, formaldehyde