In recent months, a report from 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 tonic for mahogany prices, which surged even further. In the Tianjin market, the price of mahogany raw materials has skyrocketed, making furniture made from this wood increasingly expensive. 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 the amount recorded during the same period last year. The "mahogany frenzy" continues to intensify.
**Sharp Increase in Raw Material Prices**
"Dahong rosewood is leading the trend. Since summer, log prices have risen by about 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, explained that the price of red rosewood with a diameter of 30 to 40 centimeters has now reached 180,000 yuan per ton, up from over 80,000 yuan previously. "The price of mahogany furniture has been rising rapidly. Recently, the supply of wood in the south has become very tight, and Burmese pears are almost no longer available. The price of Burmese rosewood logs with a diameter of 30 to 40 centimeters has increased from 20,000 yuan per ton to as high as 30,000 yuan. Additionally, countries like Myanmar and Laos have tightened their logging regulations, making it nearly impossible to find these woods in the market. Labor costs and rising oil prices have also contributed to the surge in furniture prices."
**Furniture Prices Soar**
The increase in log prices inevitably leads to higher furniture prices. According to a reporter's investigation, rosewood furniture in the Tianjin market has seen significant price hikes this year, although the increase is slightly less than that of the raw materials. For example, a set of Dahong rosewood furniture in several stores in the city now costs 790,000 yuan — double the price at the start of the year. Burma rosewood furniture, though less expensive, has also seen an increase of over 100,000 yuan compared to the beginning of the year.
According to Ma Jie, 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, noted, "China's recent rise in rosewood furniture prices has been quite dramatic. As Myanmar is China's main supplier, any restriction on its exports will directly impact the supply of rosewood in China. However, there are speculators behind the price increases, and under the hype, the price surge has accelerated."
**Sales Remain Strong Despite High Prices**
Despite the soaring prices, the sales of mahogany furniture have not cooled down. Instead, they have continued to rise against the trend. Since June, the international focus on protecting mahogany resources has sparked enthusiasm among collectors and high-end consumers, greatly boosting demand. At the same time, falling gold prices and a sluggish stock market have driven investors to seek alternatives in the rare and valuable mahogany furniture market.
Many customers who had planned to buy furniture next year have opted to purchase it earlier this year. "This year, especially from August to October, we've sold very well," said a sales representative at a mahogany furniture showroom in Zhujiang Store of Real Home. Customers are worried that prices will rise even further next year.
In addition, the sharp increase in mahogany furniture prices has also pushed up the prices of other types of furniture. Many consumers who originally intended to buy mahogany furniture have turned to solid wood options with similar styles. Prices for elm, beech, and pine furniture have also risen by around 10% compared to the same period last year. (Editor: Peter)
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