Since the second half of 2012, the mahogany furniture industry has entered a "low period." According to multiple industry insiders, over the past year, production costs for mahogany have increased by 10% to 20%, yet the prices of most mahogany furniture have remained stable or even dropped. On August 1, 2012, the national standard for "General Technical Conditions for Mahogany Furniture" was officially implemented. This regulation sets guidelines for product classification and naming, and requires all mahogany furniture products to be equipped with a unified national quality card.
In March of this year, the 16th Conference of the Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) updated its appendices. Five species of Dalbergia, including Dalbergia sibirica and Dalbergia mesoamerica, were moved from Appendix III to Appendix II. This change significantly impacts international trade regulations for these species.
On June 12, the newly revised CITES Convention will come into effect. According to the national standard GB18107-2000 "Redwood," the number of redwood species under CITES protection has increased to seven, leading to stricter controls on the import of redwood logs. Industry experts predict that this will result in tighter import regulations for mahogany, which could lead to a rise in domestic mahogany furniture prices.
Many industry players are already preparing for this price increase, with some merchants planning to raise their prices soon. However, the lack of standardized rules in the market has led to a chaotic situation, as mahogany furniture is currently being sold without clear guidelines.
Some species, like Dalbergia chinensis, are expected to see price increases of 20% to 30%. Since the second half of last year, the mahogany furniture sector has been struggling. Production costs have risen, but retail prices have not kept up. As one veteran in the industry said, "Buyers are hesitant, and sellers can't afford to lower prices."
Zhang Hongjian recalls the golden days of the mahogany furniture boom in 2007, when demand was high and customers would rush to place orders after recommendations. Today, however, the market is much more subdued. During a visit to a furniture store, the reporter found few customers and empty shops, with sales staff either chatting or pacing the corridors.
Zhang Hongjian explained that rising costs and declining sales have forced many stores to close, reducing the number from 13 to 7. He emphasized that while prices have become more transparent, businesses are cautious about raising them. Instead, they focus on retaining existing customers.
Gong Nanzhu also remembers the "golden era" of mahogany furniture between 1999 and 2005, when prices doubled in just two months. Now, profit margins have shrunk, and the industry is facing overcapacity. However, rare species like Laohu Dalbergia from Laos remain in short supply, driving up prices.
In the second half of last year, a set of sofas made from Dalbergia dalmatia wood cost over 400,000 yuan, but now it's over 500,000. Zhang Bolin noted that Dalbergia cochinensis has replaced the nearly extinct Pterocarpus lobata and is now highly sought after.
Recent reports from the China Forest Products Association suggest that mahogany furniture prices are expected to rise substantially by June. This comes after the CITES update in March, which elevated several Dalbergia species to higher protection levels, making international trade more restricted.
Zhang Bolin explained that the increased protection of Dalbergia rosea has made imports from Laos more difficult, and domestic supplies are now cheaper than imported ones. With limited raw materials, he predicts a 20% to 30% price increase by June.
Liantianhong’s official website has already announced price hikes, with Jiaozhi Dalbergia furniture increasing by 20 yuan per kilogram, and others like African rosewood and hedgehog rosewood rising by 10 yuan per kilogram.
At Mohan Port, which borders Laos, many timber merchants say that stocks of Dalbergia sibiricum are running low, and similar shortages are appearing in China. Zhang Bolin believes that if both stocks are depleted, Dalbergia dulcis will see a sharp price surge.
The phrase "mahogany furniture is sold on the ground" has circulated in the industry, suggesting that it's treated like common goods. Zhang Bolin, who has been in the business for over 20 years, disagrees. He emphasizes that mahogany furniture is crafted from high-quality materials and involves intricate carvings and advanced drying techniques, making it both practical and collectible.
Mahogany furniture dates back to the Ming Dynasty, when Zheng He brought it from the West. Its hardness and rich color made it popular among the royal family. Over time, it became a symbol of status and sophistication.
Zhang Bolin has always focused solely on the mahogany industry, avoiding other sectors due to the deep waters of the redwood market. He notes that the investment-to-return ratio has declined significantly in recent years.
Like other industries, the mahogany furniture sector has gone through cycles of growth, oversupply, and refinement. Gong Nanzhu believes the future lies in premium products. He argues that good design can elevate the artistry of mahogany furniture, adding human and spiritual value.
Yang Hongbin sees the need for a "boutique route" in the industry. He cites factors such as the long production cycle, low output rates, and increased global protections. With the discovery of new wood sources in Africa and America, some manufacturers are exploring these markets.
Currently, Yang Hongbin is working on a plan to develop industrial clusters, establish technology centers, and build regional brands. He emphasizes the need for unified industry standards, which he believes will require government support. Others in the industry share similar visions, though they acknowledge the long road ahead.
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