The outbreak of the coronavirus could have ripple effects throughout the global wood industry, according to a report by Fordaq.
Should the virus spread to coastal towns and cities in China, the country’s ports could become “restricted with little warning,” the report states. Many warehouses and timber processing factories in China have shut down as employees are told to stay home in an effort to contain the virus.
New Zealand Forest Owners Association President Peter Weir told Fordaq it’s possible the disruption in the industry will be brief and production will return to normal soon. However, right now, there’s uncertainty.
“Nobody knows how long and widespread the coronavirus outbreak will be, and what effect that will have on any medium-term trade,” Weir said.
Indications today were not positive: The Dow dropped 800 points, a 2.75% decline, after reports of greater numbers of coronavirus cases outside of China, and global markets plunged, the Washington Post reported. There are now more than 77,000 confirmed cases of coronavirus, with a death toll of more than 2,500, according to the report, with outbreaks reported in South Korea, Italy and Iran.
