After experiencing steady development for several consecutive years, the domestic rosewood industry has finally been implemented for one month in the CITES Convention. Originating from the shortage of raw materials and momentum of price increase, it will soon spread to the finished products.
People in the industry believe that the mahogany end market is currently in a situation where there is more glutinous rice. Under the stimulation of the shortage of raw materials, the entire industry will eventually face a new round of reshuffling. Because large companies and SMEs will have a big gap in the purchase price of raw materials.
The CITES Convention caused the skyrocketing prices of wood to be "very crazy. Everyone is looting the wood for fear that it will not be able to grab a good one." In the past June, Dahong Hongmu dealer Xiao Quanzhong (a pseudonym), in the well-known Hongmu trading port - Yunnan Ruili experienced a surge of rosewood prices, and good wood was almost looted.
Xiao Quanzhong told reporters that these dealers competing with him came from Shanghai, Guangdong, Suzhou, and even Singapore and Malaysia. Their strength is quite strong. One must be dozens of tons or even hundreds of tons of goods. In the days before June 12th, thousands of tons of better raw materials were bought from Ruili every day. Now the inventory of Ruili Redwood raw material distributors is running out.
Under the market rush, the price of Ruili rosewood raw materials rose by 10%-30% depending on the species. "I have been operating mahogany for so many years, but this year's scene is rare." Xiao Quanzhong sighed.
A month ago, Dalbergia japonica, Dalbergia japonica, Belize Dalbergia, Central American Dalbergia, and Lushi Dalbergia were formally listed in Appendix II to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES Convention). .
Material is almost the lifeblood of mahogany companies. The implementation of the CITES Convention means that the mahogany raw materials that can be developed and used in the future will become increasingly scarce. For many mahogany classical furniture companies, it will undoubtedly be a hit. Therefore, there was a scene mentioned at the beginning of the article within one month of the implementation of the CITES Convention.
Jiang Daosong, chairman of Zhongshan Square Plaza, frankly stated that the price of mahogany has been stable in recent years, and many investors have already lost confidence. However, the implementation of the CITES Convention this year is like a fuse, which has brought great stimulation to the entire industry. As a result, there has been a surge in raw materials.
Belize Dalbergia is difficult to obtain, but not all the rosewood timbers listed in the CITES Convention have emerged as buying.
Yu Zhu, head of the China Wood Price Index Network of Yuzhu, told reporters that the most popular redwood raw materials are Belize Dalbergia. Since the Belizean state banned the export of Belize rosewood, it caused the Belize Dalbergia in the Guangdong area to be difficult to obtain and the number of merchants seeking to obtain it was increasing.
“Because it is difficult to apply for endangered certificates in exporting countries, this means that the timber cannot be exported. It is estimated that this situation will not be improved by the end of the year. At present, the price of Belize Dalbergia has been out of control, which has far exceeded the market price. The involvement is even more so," said the witch.
Also affected by the CITES Convention, the current red sulphur branches in Vietnam and Laos have completely ceased exporting, and a large number of goods have been stranded in the port. At the same time, under the circumstance that the market mentality is difficult to stabilize, the atmosphere of market speculation has intensified, and even the phenomenon of screaming of prices has emerged.
Witch ** told reporters that the current price of Souzhi rose has risen by 20% to 30% compared to the previous, and in terms of good material, some businesses have even opened a double price higher than before. The magnitude of the increase is staggering.
“But when the price rises sharply, the sales volume of SouHua rosewood is not as good as that of Belize Dalbergia.†The witch ** said that most of the current downstream buyers are in a wait-and-see situation, and there are not many stocks in stock. Price is merely a manifestation of the merchant's attempt to test the market.
The raw materials expected to increase the price of red-wood products are quietly rising and skyrocketing, but there is still no significant increase in the price of mahogany's end products.
Recently, reporters visited Dahong and Shaxi. Many mahogany enterprises found that most of the company’s product prices were still sold at previous prices, and did not significantly increase prices. Some companies are even selling discounted mahogany products. However, when it comes to the trend of redwood, most companies still do not forget that the CITES Convention will drive up the product.
In a mahogany furniture store in Dayong, a dining table made of Dalbergia has 10 identical mahogany stools, priced at 145,000 yuan. When a reporter asked if it was still possible to discount, the salesman told reporters that this was the lowest price. After this time, the raw materials were even more tense, and the price was going up.
In the long run, will the surge in raw material prices really lead to rising products?
In this regard, the witch ** frankly admitted that although the market hype is strong, but due to the current economic environment is not a big economy, coupled with the current policy of strict implementation of thrift also further limits this type of "high-end consumption", Dahong rosewood furniture sales dismal . Therefore, the downstream market has a relatively small demand for Scarlet rosewood.
Xiao Quanzhong believes that even if the current scarlet rosewood cannot enter the domestic market, inventory can still be supplied for quite some time. However, with the arrival of the fall season of mahogany furniture sales and the implementation of the CITES Convention, the price of some finished red-wood products will increase.
“The recovery of the mahogany market is already an indisputable fact. The price of mahogany products will inevitably grow steadily. As a mahogany company, we do not expect the industry itself to experience the phenomenon of skyrocketing plunge.†Xiao Quanzhong stated that the mahogany end market is currently in a situation where there is a lot of shortages. The Redwood industry will eventually face a new round of reshuffle. Because large companies and SMEs will have a big gap in the purchase price of raw materials. Many small family-owned mahogany companies will be phased out due to lack of marketing channels and brand support.
“As long as the market has not recovered, the prospective mahogany companies are already preparing for the preparation of wood, and now it is too late to pick up the goods. The price is very expensive, and there is no good raw material. , need a long-term vision." Jiang Dao Song said.
"The CITES Convention Brings Urgent Warmer Signals to the Industry"
Whether it is the mad increase of raw material prices or the hot rush of the port market, this reflects to a large extent the current urgency of the recovery of the mahogany market.
In fact, before the New Deal of the CITES Convention, there were many domestic timbers that needed to provide endangered certificates in the market trade. For example, in the case of wood pigeon (commonly known as African teak), trade in the market would be required to provide threats, but its market has not been overheated. Quotes.
The sharp rise of Dalbergia japonica, Belize rosewood and so on, on the one hand because the market awareness and reputation is much higher than other wood species, belong to redwood; on the other hand there is also a certain amount of hype, this point It can be reflected from the current market with no market value.