From April 1 next year, Myanmar will halt the export of logs, triggering a significant ripple effect in the domestic mahogany market. The prices of imported mahogany raw materials from Myanmar have surged, with some rising threefold. In response, various types of mahogany furniture in Nanning’s mahogany market have also seen dramatic price increases, with some mahogany sofas jumping from over 100,000 yuan to as high as 300,000 yuan. Industry insiders suggest that the Nanning rosewood sector may soon undergo a major restructuring.
The recent implementation of the new CITES (Convention on International Trade in Endangered Species) agreement in June has further intensified the situation. Under the updated regulations, Myanmar, one of the primary exporters of rosewood, plans to stop exporting logs starting April 1, 2014. According to its forestry development plan, log exports will be completely banned between 2014 and 2015, with all timber required to be processed before being exported.
These policy changes have sent shockwaves through Nanning’s mahogany furniture market. Business owners like Ling, a local rosewood merchant, are feeling the pressure. He mentioned that after the CITES treaty took effect in June, Vietnam imposed a 200% tax on rosewood exports. Then, just before National Day, he learned that Vietnam had banned exports from October 25, prompting him to rush to Vietnam to secure raw materials.
Most of the mahogany in Nanning comes from Vietnam, and the prices have skyrocketed. Before National Day, the price of semi-finished red rosewood furniture imported from Vietnam doubled compared to two months earlier. Currently, the price of 50 cm diameter Burmese rosewood has reached 23,000 yuan per ton, up from just 8,000 yuan at the start of the year. Meanwhile, red sandalwood logs have jumped from 15,000 yuan per ton to around 280 million yuan per ton. A set of semi-finished mahogany sofas now costs nearly 300,000 yuan. If Myanmar also stops exporting logs, the supply of raw materials will shrink, leading to even higher prices and directly impacting the cost of mahogany furniture.
In response, many Nanning mahogany furniture stores have begun adjusting their pricing strategies. For example, at a furniture store in Fu'anju Home Plaza, a seven-piece "Jiaoding Dalbergia" dining table is priced over 200,000 yuan, while a beautifully carved bookcase goes for 280,000 yuan. An 11-piece sofa set exceeds 800,000 yuan. Even "red rosewood" items, which are relatively more affordable, can still cost over 70,000 yuan for a seven-piece set.
Since July and August this year, rosewood prices have steadily increased, with most varieties rising by about 20%. With the upcoming restrictions on mahogany exports from Myanmar, the scarcity of raw materials is expected to drive prices even higher. As a result, some businesses have stopped accepting new orders, unsure how much further the prices will climb.
Industry experts warn that the rising costs of raw materials will inevitably lead to the elimination of smaller companies lacking strong marketing channels or brand recognition. Over the past two years, the retail market for mahogany has not been very active, and there was a slight price drop in April and May this year due to fierce competition. However, with the current shortage of materials and soaring prices, it's likely that some furniture companies and manufacturers will face financial difficulties. Without a steady supply of raw materials, many factories could be forced to halt production, leading to a new round of industry reshuffling.
To cope with the crisis, some manufacturers in Nanning have started exploring alternative materials, such as low-end mahogany and "new mahogany" species not traditionally included in the list. For instance, African yellow flower pear and Barry Dalbergia, though less expensive than Laos red rosewood, are gaining popularity. Despite their lower quality, these materials are now seeing rapid price increases. One month ago, African yellow flower pear was priced at 4,600 yuan per ton, but it has since risen to 7,000 yuan per ton.
As the industry faces uncertainty, the search for sustainable solutions continues. Guangxi, with its strategic location near Pingxiang and Dongxing, has become a well-known center for redwood distribution in China. How the sector adapts to these challenges will test the resilience and ingenuity of all stakeholders involved.
HCH Hardware is a bolt manufacturer and provides all kindsof fasteners since 2008. Our main products includestandard bolts, nuts, Screws, washers, Pins and OEM parts. We have integrated resources from more than 50 top level fastener factories in Jiaxing, Haiyan, Ningbo,Dainan, Qintongareas, and have established long term relationships with them.We arenow serving for over 60 customers in South and North America.We can provide you with one stop services to meet you different needs, which can save your purchasing cost and optimize your efficiency. HCH Hardware was certified by ISO9001-2015 on 02/25/2021.We especially emphasize on products quality,HCH Hardware have necessary conditions for quality control with applicable processes and experienced experts. Appropriate production processes and quality control
actions can meet clients` highexpectation on quality and services.
Metal Bolt,Locking Bolt,Furniture Bolts,Steel Bolt
Taizhou Hongchuang Hardware Co., Ltd. , https://www.taizhouhongchuang.com