The surface decoration methods of wood-based panels in my country include decorative paper veneer (impregnated film paper, high-pressure decorative board, etc.), decorative film veneer (PVC, PP, etc.), decorative veneer + finishing, direct printing + finishing, etc. Among them, decorative paper finishes are the main ones, about 70% of medium-density fiberboard and particleboard, and 20% of plywood are decorated with decorative paper.
In 2021, my country's decorative paper and decorative panel industry chain will show many common characteristics, the market demand will rise first and then fall, and the overall growth will be moderate.
Production and sales continued to grow. The sales volume of decorative base paper was about 1.1497 million tons, a year-on-year increase of 3.27%, and the output of decorative paper and decorative panels maintained a global market share of more than 60%.
Industry concentration has steadily increased. The brand, technology, management, and capital advantages of leading enterprises have been further deepened, which has led to the upgrading of industrial competition levels, and the polarization has become more and more obvious. There are three decorative base paper enterprises with an annual output of over 200,000 tons.
Supply chain uncertainty is significant. The prices of raw materials such as pulp, titanium dioxide, melamine, and wood-based panels have fluctuated and risen in turn. Energy and logistics costs have risen, and export containers have been in short supply. All-round tests of supply chain resilience have led to higher costs and lower profit margins. Some companies even suffered periodic losses.
In 2022, the market was flat at the beginning of the year, and the market demand is expected to maintain a moderate growth trend throughout the year. However, new uncertainties in the supply chain at home and abroad are fermenting, and the impact on individual enterprises is further differentiated. European chemical giants have issued an early warning of production shutdown. The conflict between Russia and Ukraine may lead to a shortage of upstream raw materials such as synthetic ammonia in the international market, resulting in a tight domestic supply of corresponding raw materials and price fluctuations. The global COVID-19 pandemic will affect supply and sales to varying degrees, testing the ability of companies to operate and manage.
In the face of an increasingly complex, unstable, and uncertain international environment, risks and opportunities coexist in the decorative paper and decorative panel industry chains, and the supply and demand pattern may change rapidly. One is to look rationally at "weird" prosperity. Under the new crown epidemic, the probability of "market demand" being artificially amplified is high. It is recommended that companies strengthen their awareness of risk prevention and control, prevent "bubble orders", maintain the bottom line, and stabilize cash flow. The second is to actively respond to the pressure and risk of rising costs. It is suggested that small and medium-sized enterprises explore the competition and cooperation model for heating in a group, seek strategic cooperation with upstream suppliers, avoid supply interruptions, enhance the ability to resist cost fluctuations, and ensure stable production and operation. The third is to strengthen order management. In recent years, retail sales of household terminal products have declined, while engineering and exports have strengthened. The probability of high-intensity risks gathering and passing upstream has increased. At the same time, various uncertain factors may affect on-time delivery. It is recommended to explore and share risks with customers. It is an effective way to rationally plan production, procurement, and logistics, and maintain a prudent and vigilant attitude to control orders.