In August 2020, The local epidemic situation in China has basically disappeared, and the production and operation activities of various industries have recovered rapidly. As August is the traditional off-season of timber industry, the operation situation of timber enterprises is slightly weak, but the enterprises are full of confidence in the later stage.
The GGSC-CN comprehensive index for August registered 47.7% (42.1% for last August and 54.9% for August 2018), a decrease of 9.8 percentage points from the previous month, ending  the expansion trend for 5 consecutive 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.
The specific reason is that in the traditional off-season of August, the trading volume of timber industry is not booming, and the index in the previous few months has continued to warm up, and the enterprise's base for judging the prosperity of the industry has basically returned to the level of previous years. For the sub-index, the domestic market demand is relatively stable, the international market is insufficient in new orders, and the purchase price and quantity remain relatively stable..

Challenges
Ø Less logging and worse quality of logs.
ØThe road condition is not good, the logistics distribution is not smooth, and the supply time is not timely.
Ø There is a lot of rain this year, so the suppliers of raw materials are reluctant to sell them
ØTariff on logs imported from the United States
Ø The raw materials of Dadu and vice oak are in short supply
Ø The supply of some raw materials is unstable
Products in short supply
Juglans Nigra, Oak,Lacquer, wood veneer
Commodity of which the price has been increased
Poplar, paraffin, methanol, waterproof agent, urea
Commodity of which the price has been decreased
Tangmu, Okan, Teak, Pear, Oak, Hippo, Miscellaneous Wood, Pine, Formaldehyde

As for the GGSC-CN  index, in August 2020, all of five sub-indexes of GGSC-CN index declined.
The production index registered 50.1%, a decrease of 12.5 percentage points from the previous month, comes to an end of  expansion trend for 5 consecutive months. It shows that the production of superior forest products enterprises represented by GGSC CN decreased in June from last month.
The new order index registered 50.0%, a decrease of 12.5 percentage points from the previous month, reflecting the ability to obtain orders is almost same as last month. Among them, the new export order index reflecting international trade registered 27.3%, a decrease of 28.9 percentage points from the previous month,, showing that orders from abroad this month has sharply decreased in August from last month.
The main raw material inventory index registered 36.4%, a decrease of 13.6 percentage points  from the previous month. It shows that the raw material inventory of the superior forest products enterprises decreased from last month.
The employment index registered 45.5%, an decrease of 4.5 percentage points  from the previous month. It shows that the employment of the superior forest products enterprises decreased from last month
The supplier delivery time index was 45.5%, an decrease of 4.5 percentage points  from the previous month. It indicates that the supply time of raw material suppliers of the superior forest product enterprises decreased from last month.