By 2020 and 2021, wood has been hit hard, and the cost of plywood is no exception.
In the early days of the pandemic, the cost of plywood was relatively normal—increasing at a normal rate. However, these prices have not remained the same as the lockdown has proceeded. Because people are trapped in their homes, the prices of almost all wood products in the project have risen sharply. The cost of wood, oriented strand board, and plywood will begin to climb at an absurd rate throughout 2020.
In early 2021, many people across the country began to be optimistic about the economy. Professionals in various industries believe that the timber and board market will begin to fall. This forecast is both reasonable and economically reasonable... But unfortunately, it has other ideas in 2021.
By April 2021, the cost of plywood has been about 200% higher than normal. This kind of jump is not only unforeseen but also unprecedented. As demand for almost every imaginable wood product is high, ongoing labor shortages and supply chain issues have exacerbated the already existing demand. Due to the large demand that cannot be met, the cost of plywood has soared in an unprecedented way.
Fortunately, these prices are not only unimaginable but also unsustainable. From summer to this autumn, the cost of plywood has gradually declined for the first time in more than one and a half years. Although this price drop has made life easier for everyone, the gradual inflation we are currently experiencing is still looming in the distance.
What happened to plywood now?
One of the biggest factors driving up the cost of plywood is the overall availability of plywood. Because the demand across the country is so high, the supply of plywood has fallen sharply-making it scarce and valuable.
As the cost of plywood continues to decline, availability continues to increase. We have not fully reached the level of plywood before the pandemic, but we are getting there. As more and more manufacturers begin to come into contact with plywood, the wood panel industry is finally beginning to resemble what we have seen in the past.
But, like many things, we may have to prepare for the new normal. Inflation is increasing every day, and it is likely to begin to have a greater impact on future wood products.
It is conceivable that we who have been fighting the virus for a long time in the future will gradually accept the trend of plywood or other wood prices. Although this situation may not seem very good, it is not completely useless. At least for now, there will be an endless stream of updated products and technologies to replace and divide a cake. This may be another opportunity!