In recent months, a report by Myanmar's "Newsweek" revealed that the country would cease exporting logs starting April 1, 2014. This news quickly spread to the domestic market, acting like a strong stimulant and causing the price of mahogany raw materials to skyrocket. In the Tianjin market, the price of mahogany furniture has nearly doubled since the beginning of the year. According to statistics from the Tianjin Household Circulation Industry Association, the turnover of mahogany furniture in the city’s retail sector reached 1 billion yuan between May and October this year—nearly three times higher than the same period last year. The ongoing "mahogany frenzy" continues to intensify.
**Sharp Increase in Raw Material Prices**
"Dahong rosewood is the top performer. Since this summer, log prices have risen by approximately 130%, while Burmese rosewood prices have remained relatively stable," said Mr. Zhang, a salesperson at a mahogany furniture store on Jiefang South Road. He added that from June this year, the prices of some high-end scarlet rosewood furniture have more than doubled.
Ma Jie, the sales manager at Tianjin No. 5 Furniture Factory, noted that the price of red rosewood with a diameter of 30 to 40 centimeters has surged to 180,000 yuan per ton, up from over 80,000 yuan previously. He explained that the supply of wood in southern regions has become extremely tight, with Burmese pears almost completely unavailable. The price of Burmese rosewood logs with a similar diameter has climbed from 20,000 to 30,000 yuan per ton. Additionally, increased logging restrictions in countries like Myanmar and Laos have further tightened the supply. Rising labor costs and oil prices have also contributed to the soaring prices of mahogany furniture.
**Furniture Prices Soar Beyond Ten Thousand Yuan**
The surge in log prices inevitably leads to higher furniture costs. According to a reporter’s investigation, rosewood furniture prices in the Tianjin market have risen significantly since the start of the year, though not as rapidly as the increase in log prices.
Several mahogany furniture stores in the city cited Dahong rosewood as an example. A set of three-bedroom bedroom furniture, including a bed and bedside tables, now costs 790,000 yuan—double the price at the beginning of the year. Burma rosewood furniture, although less expensive, has also seen a significant price jump, with a set now costing over 100,000 yuan more than it did at the start of the year.
Ma Jie mentioned that their mahogany furniture products underwent a price adjustment in August. Burmese rosewood furniture saw an average increase of 5% to 15%, while Dahong rosewood furniture prices rose by 50% to 100%.
Chen Zhangli, a researcher at the CIC consultant building materials industry, commented, “China’s recent rise in rosewood furniture prices has been substantial. As Myanmar is China’s main supplier of rosewood, any export restrictions will directly impact the supply chain. However, speculation and hype have also played a role in amplifying the price increases.â€
**Sales Continue to Rise Despite High Prices**
Despite the dramatic price hikes, the sales of mahogany furniture have not cooled down—they have even increased against the trend. Since June, growing international concern over the protection of mahogany raw materials has sparked enthusiasm among collectors and high-end consumers, significantly boosting demand.
Additionally, falling gold prices and a downturn in the stock market have led investors to shift their focus to the rare and valuable mahogany furniture market. While many consumers, like Mr. Jia, are still debating whether to buy or wait, more people are choosing to sell immediately.
“At our showroom in Zhujiang, the price increase hasn’t affected sales performance. Many customers who planned to buy next year have decided to purchase this year instead, fearing that prices will only go up,†said a sales representative. “This year, especially from August to October, we’ve had very strong sales.â€
Meanwhile, the soaring prices of mahogany furniture have also driven up the cost of other furniture types. Consumers who originally intended to buy mahogany have turned to solid wood furniture with similar styles. Prices for elm, beech, and pine furniture have also risen by about 10% compared to the same period last year. (Editor: Peter)
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