Fiber Board and Plywood Board Led Increase of Panel Board Futures

By CnAgri2014-02-10 10:06:26 Print On Oct. 18th, CSRC approved list of fiber board and plywood board futures in Dalian Commodity Exchange. Since officially listed on Dec. 6th, the two futures have gone strong and both volume and open interest recorded numerous high levels. Besides, futures’ leading effect on spot market was also gradually noted. There are many panel board manufacturers in Yitang Town, Linyi City, which is the largest and most concentrated panel board production and distribution region in NC. DCE even has warehouses there. Local manufacturers generally believed that futures list would promote development of local panel board industry. 
　　　
With low threshold, China panel board industry is competitive and shows the trend of surplus capacity of some varieties, fierce competition and inadequate supply in high-end market, which is true even in Linyi. According to research of Sunsirs, local manufacturers have great interests in futures list and generally believe the list will  help form reasonable and transparent price system to manage price fluctuation risk of entitative enterprises, promote optimal allocation of forest resources and upgrading of relative industrial structures and will bring new development to the local panel board industry.

From “China Wood Market Monthly Report”