From April 1 next year, Myanmar will begin to prohibit the export of logs, a decision that has already sent shockwaves through the domestic mahogany market. The price of imported mahogany raw materials from Myanmar has surged—some have even tripled in value. As a result, all types of mahogany furniture in Nanning’s rosewood market have also seen a significant increase in prices. Some mahogany sofas, for example, have jumped from over 100,000 yuan to as high as 300,000 yuan. Industry insiders suggest that the Nanning rosewood industry may be heading for a major restructuring.
In June this year, the new CITES (Convention on International Trade in Endangered Species of Wild Fauna and Flora) regulations came into effect, restricting the trade of endangered species. Myanmar, one of the main suppliers of rosewood, announced plans to stop exporting logs starting April 1, 2014. According to its forestry development plan, log exports will be completely banned from 2014 to 2015, with only processed timber allowed for export. This policy shift has created a ripple effect across the entire rosewood supply chain.
The tightening of export controls has caused a significant upheaval in Nanning’s mahogany furniture market. Business owners are scrambling to secure supplies before the restrictions take full effect. One local mahogany merchant, Ling, shared that after the CITES rules were implemented in June, Vietnam imposed a 200% tax on rosewood exports. Then, just before National Day, the Vietnamese government announced a complete ban on exports starting October 25. Ling rushed to Vietnam to purchase raw materials, trying to secure stock before prices soared further.
The Nanning market primarily relies on Burmese rosewood and Vietnamese rosewood, with most raw materials coming from Vietnam. Before National Day, the price of semi-finished red rosewood furniture imported from Vietnam had doubled compared to two months earlier. The market price for 50 cm diameter Burmese rosewood has now reached 23,000 yuan per ton, up from just 8,000 yuan at the start of the year. Meanwhile, the price of red sandalwood logs has skyrocketed from 15,000 yuan per ton to nearly 280 million yuan per ton. A set of semi-finished mahogany sofas can now cost nearly 300,000 yuan. If Myanmar follows through with its logging ban, the supply of raw materials will shrink, leading to further price hikes and directly impacting the cost of finished furniture.
At a mahogany furniture store in Fu'anju Home Plaza on December 4, various pieces of high-end furniture were prominently displayed. A seven-piece "Jiaoding Dalbergia" dining table set was priced over 200,000 yuan, while a beautifully carved "Jiaoding Dalbergia" bookcase was listed at 280,000 yuan. An 11-piece "Jiaoding Dalbergia" sofa was priced at over 800,000 yuan. In comparison, "red rosewood" sets were relatively more affordable, with a seven-piece set costing over 70,000 yuan.
Since July and August this year, rosewood commodity prices have been rising steadily, with most varieties increasing by around 20%. With Myanmar's upcoming logging restrictions, the scarcity of raw materials is expected to push prices even higher. To mitigate the risk, some businesses have stopped accepting new orders since the 15th of last month.
Industry experts warn that as raw material costs continue to climb, many small-scale mahogany companies without strong brand presence or marketing channels may struggle to survive. In fact, the retail market for mahogany has not been very active in the past two years. Despite a brief price drop in April and May this year due to fierce competition, the current situation shows signs of a potential reshuffle. Companies facing financial strain or supply shortages may be forced to halt production, leading to a wave of consolidation in the industry.
In response to the shortage, some manufacturers in Nanning are exploring alternative materials. For instance, African yellow flower pear and Barry Dalbergia, which are cheaper than traditional rosewood, are gaining attention. Although these materials are considered lower quality, their prices have risen sharply in recent months. African yellow flower pear, once overlooked, has increased from 4,600 yuan per ton to 7,000 yuan within a month. Other alternative woods, such as Barry Dalbergia, are also seeing price increases.
As the industry adapts to the changing landscape, the future of the rosewood market remains uncertain. However, many in the sector remain optimistic, believing that innovation and diversification could help sustain growth. The challenge now is to find a balance between preserving traditional craftsmanship and embracing new materials to meet demand in a constrained market.
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