Vietnam's Plastics, Steel and Wood Industry Are Being Affected By The World's "Super Cyclone"

Vietnam's Plastics, Steel and Wood Industry Are Being Affected By The World's "Super Cyclone"



In the past few months, the wood industry has experienced an average growth of 10%. Iron and steel increased by 30% while plastic prices also increased rapidly by 30-50%.

It can be seen that the world price hike super cyclone is affecting Vietnam. Specifically, from the end of last year up to now, the price of iron and steel has increased by 30%. Many plastic materials also increased by 50%.

Regarding the wood industry, the auxiliary materials related to chemicals, foam, foam, glue ... all increased by 20-30%. For raw materials is also very unstable, especially domestic wood increased by 10-15 or even 20%, imported wood increased by 20-25%.

With such a skyrocketing price, the export contracts of enterprises are now almost unprofitable and if they are willing to pay such high prices, there is also a shortage of goods to buy.

According to the Vietnam Timber and Forest Products Association, the yield of the wood industry is low, only 5-7% due to high competitive pressure in the world market. Therefore, fluctuations in raw material prices that occur after orders are signed will reduce business efficiency. Many wood enterprises currently do not dare to accept long-term applications for the whole year, due to concerns about fluctuations in input costs.

Super bullish cycle is the judgment of a few big Wall Street banks. A typical super cycle is not the fluctuation in prices by day, but the trend of increasing commodity prices by 20-50% will happen in the long term, possibly up to decades. In the past 100 years, there have been only 4 super bull cycles.

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