The rosewood industry is welcoming the peak season, but subject to shortage of raw materials, the price of precious redwoods has soared this year, and some high-end products have even doubled in price. The reporter learned from some of the mahogany furniture enterprises in Yiwu and Dongyang, Zhejiang, that this year is still the "big year" of mahogany furniture. However, in view of the entry into force of the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), high-end mahogany prices have risen sharply, and low-end and mid-range products have become popular. Some enterprises and merchants have expanded their production and sales scales to cope with market demand.
The scarcity of precious redwoods caused prices to soar
“The import of mahogany raw materials is restricted, and the scarcity of high-end wood has been plaguing enterprises.†Mr. Du is the head of a large-scale mahogany enterprise in Dongyang Hengdian. In the past two years, the redwood market is better, but the shortage of all kinds of precious mahogany raw materials has caused enterprises to take Less than raw materials affect production, on the other hand, the price of high-end mahogany products rises linearly, affecting sales and profits.
At present, it is the peak season of production and sales of the mahogany industry. In Yiwu, Dongyang and other places, all mahogany furniture manufacturers are fully equipped to stock up and ship. However, the shortage of raw materials is no longer overnight.
It is understood that the price of raw materials for rosewood is closely related to the entry into force of the CITES Convention on June 12. The Convention listed seven species of timber, such as Siamese rosewood, as endangered species and was restricted from importing, resulting in a significant reduction in the amount of Siamese rosewood entering the Chinese market. To this end, the price of domestic rosewood has risen steadily, especially for all kinds of valuable redwood varieties, and the price has soared. Mr. Du’s company is mainly medium and high-grade mahogany. He introduced that the price of 60 cm long and small materials in the high-end products of Laos is increased from 30,000 to 40,000 yuan to 80,000 yuan per ton. The price of rice and long materials has reached more than 200,000 yuan / ton. The higher-grade Indian lobular rosewood two-meter-long first-class material price has risen from more than 1 million yuan / ton to more than 2 million / ton, the price doubled.
Mr. Du said that from June to July this year, Laos rosewood and Burmese rosewood raw materials rose by 50%-100%, and some large-scale gains even exceeded 100%. Other rosewood categories also have a 10%-20% increase. The price increase of raw materials quickly spread to the finished products of mahogany, and the prices of mahogany furniture and woodcarving crafts all increased significantly.
Sales of low-end mahogany furniture increased
Different from the high-end furniture such as Siamese rosewood and lobular rosewood, some low-end redwoods such as large-fruit rosewood and hedgehog rosewood, which are not listed in the Convention, remain stable. Some practical consumers consider the price factor, so they prefer the low-end mahogany furniture.
"Inventories are basically sold almost, and there are already buyers in the hands of the goods." Mr. Xu, the mahogany merchant of Dongyang Painting Water, said that the demand for low-end mahogany furniture is relatively large, such as Daguo Red Sandalwood, Brazil. Redwood, such as rosewood, lobular red sandalwood, etc., is very popular this year.
Due to the limited material acquisition of precious redwood raw materials, the output of medium and high-grade mahogany furniture is limited, and the price rises. Apart from the mahogany collectors, ordinary consumers do not blindly chase the high, making the demand for medium and low-end products increase.
In the market, the price of a set of mid-end mahogany furniture is around 100,000 yuan. For example, a set of mahogany sofas, if the material is red rosewood mahogany sofa, the price needs to be 200,000 yuan. If the middle and low-end raw materials are used, tens of thousands of yuan can be purchased, which greatly stimulates the desire of ordinary consumers to purchase.
Some mahogany industry sources said that the price of mahogany furniture is mainly determined by mahogany raw materials and processing techniques. For the varieties of Siamese rosewood, lobular rosewood, and huanghuali, it is currently based on collection. The mahogany furniture with a price of 10,000 yuan or tens of thousands of yuan is mostly low-end and medium-end varieties, and the price is more affordable. It is more popular than the market.
Redwood industry or sing "good voice"
In the past few years, the mahogany furniture industry has been better year after year. For this year's rosewood industry, the industry is also optimistic.
Before the “11th National Day†holiday this year, the garden mahogany furniture city of Dongyang Garden Village expanded again, making the market a total area of ​​236,000 square meters, with more than 1,000 mahogany furniture brand franchise stores. This news is also considered by the industry to be a good confirmation of the redwood industry.
In Yiwu, Dongyang and other places, mahogany producers are also expanding their scale to cater to the market demand for mahogany furniture. “There are two major market demands, one is collection and the other is practical.†Mr. Du said that the two major demands have supported the current mahogany industry. In the long run, the mahogany industry is still expected to continue to sing "good voice."
However, the industry reminds that for consumers, when buying mahogany furniture, in addition to strict examination of the material itself, it is necessary to strictly control the process.
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