In February 2021, affected by the Chinese New Year holiday, China's PMI index dropped to 50.6%, but remained on the boom line, indicating that China's economy continued to maintain a stable recovery trend. However, the future production and operation expectation index in China's PMI index increased, indicating that enterprises are optimistic about the future market expectation, indicating that the production recovery momentum is good after the Spring Festival. This month, the production and order index of wood manufacturing industry declined due to holiday factors. The GGSC-CN comprehensive index for February registered 37.5% (14.9% for last February and 32.1% for February 2019), an decrease of 5.4 percentage points from the previous month. 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 March 2020 to February 2021

 Challenges

Ø The price of raw materials is rising and the raw materials are in short supply.

 Products in short supply

 Ø Oak veneer, Taun,Sven paint, Melamine, Urea

 Commodity of which the price has been increased

Ø Taun, Dahoma,Oak veneer,Melamine, Decorative Paper, Formaldehyde, Urea,Epoxy Acrylate,Diesel, Motor, Decorative paper, etc

 Commodity of which the price has been decreased

Ø Dahoma, Urea

As for the GGSC-CN index, in February2021, one out of five sub-indexes of GGSC-CN index rose, one flat and three fall.

The production index registered 33.3%, an decrease of 16.7percentage points from the previous month. It shows that the production of superior forest products enterprises represented by GGSC CN is worse than that of last month.

The new order index registered 25.0%, an decrease of 3.6 percentage points from the previous month, reflecting the ability of enterprises to obtain orders is worse than that of last month. Among them, the new export order index reflecting international trade registered 33.3%, a decrease of 2.4 percentage points from the previous month,, showing that orders from abroad this monthis decreased inFebruaryfrom last month.

The main raw material inventory index registered 58.3%, an increase of 1.2percentage points from the previous month. It shows that the raw material inventory of the superior forest products enterprisesis increased inFebruaryfrom last month.

The employment index registered 41.6%, an decrease of 1.2 percentage points from the previous month. It shows that the employment of the superior forest products enterprises is decreased inFebruaryfrom last month.

The supplier delivery time index was 50.0%, same as the previous month. It indicates that the supply time of raw material suppliers of the superior forest product enterprises is almost same as last month.