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The furniture factory was forced to close down because of the rising price of wood. What caused the price of wood to rise?
With the development of social economy and the progress of science and technology, our internet science has developed very rapidly, and we can automatically find the prices of many items in many places. Now there are many identical shops on the market. We can compare in the market and then choose the best purchase. Many items are peaceful, so the market is very competitive. Recently, the price of wood has risen, and furniture stores have been forced to close down. What is the reason for the increase in timber prices? According to Bian Xiao's understanding, the reason for the increase in timber prices is that China has strengthened the management and protection of trees, and these examples of returning farmland to forests are the protection of trees in China. Moreover, due to the impact of the COVID-19 epidemic, there are strict restrictions on the circulation of things in the market, and the demand for timber in the market is in short supply.

Our country has high requirements for the environment, so we should protect trees and prevent a large number of trees from being cut down. During the Great Leap Forward, China will cut down a lot of trees. Then it caused ecological damage. After that afternoon, China implemented some policies, such as returning farmland to forests, to protect trees. Therefore, China has made great efforts to protect trees, and it is not allowed to cut down a large number of trees. Therefore, most of the timber in China is imported from abroad for domestic consumption. However, due to the current epidemic situation, China has strict control over imported goods. And the epidemic abroad is very serious. Many people should be reluctant to risk their lives to see trees cut down in the forest, because they will be infected with the COVID-19 epidemic if they are not careful, so the wood imported from China will be reduced.

According to the principle of supply and demand in economics, the demand for wood in the market is in short supply, which will lead to an increase in wood prices. Because most of China's timber is imported from foreign countries, when foreigners raise the price of timber. Our country will reduce the demand for wood. Moreover, it is understood that it seems that the freight rate of domestic imported wood has increased, so the cost has increased. Therefore, after coming to China, the price of wood will increase, while domestic wood itself is relatively scarce, and there is little wood circulating in the market. Therefore, wood is not enough for market demand, and there is always demand for things that are in short supply, so the price of wood will increase.

The reason for the price increase of timber may be that China relies on imports for most of its timber sources, but the cost of exporting timber abroad has increased, so they will raise the price. The price increase is due to the shortage of timber in China market.