According to reports, Myanmar will stop exporting logs from April 1, 2014. Deng Zhiwen, deputy director of the China Redwood Furniture Council, said in an interview on the 2nd that the move will directly trigger the skyrocketing price of redwood, and the Chinese rosewood industry may face a reshuffle.
In June this year, the new Convention on International Trade in Endangered Species of Wild Fauna and Flora (also known as the CITES Convention) came into effect, triggering a chain reaction in the rosewood market. Under the new convention, Myanmar, the main exporter of redwoods, plans to stop the export of logs from April 1, 2014. According to the forestry development plan under development, the log exports will all stop from 2014-2015, and the wood must be processed to increase its value before it can be exported.
Ruili City, Yunnan Province is adjacent to Myanmar. The main circulation in the market is Burmese rosewood and rosewood. As soon as the news came out, the price of mahogany raw materials rose “crazyâ€. At present, the price of Burmese rosewood at "50 cm (wood diameter) has risen to 23,000 yuan / ton, which can be obtained in May this year around 9000 yuan." Yin Jiashun, director of the office of Ruili Deguan Honglong Furniture Co., told reporters that the rise It started in July this year.
Recently, information on the soaring sales of mahogany materials and the downturn in the sales market and the urgent need for transformation of mahogany enterprises have been frequently reported throughout the country. However, Ruili’s mahogany market has a hot situation that is in short supply. On the 2nd, the reporter visited a number of Redwood stores in Ruili and learned that although the price of raw materials has skyrocketed, the increase of mahogany furniture is controlled at 10% to 30%. Many merchants also saw the opportunity and began to bargain-hunting.
“In less than a month, we only bought more than 20 sets of mahogany furniture in our store.†Ruili and even the head of mahogany furniture, Hu Yunan said, “Now, the four production lines of the factory are working overtime every day, but they are still in short supply. There are a few sets of mahogany coffee tables left (the coffee table decoration renderings). We have to reconcile the old goods that were placed in some stores before, so that the store looks not so empty."
Zhou Yongde, executive general manager of South Asia Redwood Furniture International Expo Center, said that the reason why Ruili Redwood Industry did not appear in other cities was mainly due to the source advantage of neighboring Myanmar; secondly, it was produced in Ruili, the company rent was affordable and the cost was relatively low; In addition, Ruili is processed by local manufacturers and has the advantage of employment. Local production, processing and sales have also reduced many intermediate links and reduced costs. In addition, Ruili Municipal Government has vigorously supported the redwood industry and has given preferential policies in terms of policies. Ruili Redwood's "real price" and "good quality and low price" are also the main reasons for attracting merchants.
Although sales have risen, Hu Yunan has not dared to take orders again. In Ruili, many mahogany manufacturers are like them. Raw materials continue to skyrocket, and when it comes to the future, everyone will play a drum. "Myanmar pears have a price of 70 centimeters in diameter and have already reached more than 60,000 tons. In the first half of the year, we bought 8,000 yuan/ton." Hu Yunan said, "If you go up like this, many businesses will not be able to eat it next year. Maybe Faced with production suspension or semi-discontinuation, or even closure."
Deng Zhiwen, vice chairman of the China Redwood Furniture Council, who has been engaged in the 27-year-old mahogany industry, said, "Although the rosewood has been rising, it is the first time such a madness." He analyzed that raw materials continue to skyrocket, which will lead to industry reshuffle. Some enterprises with insufficient funds and no technology will face elimination.
For the future of the redwood industry, many businesses are still full of confidence. At present, some companies have turned their attention to setting up factories in Myanmar. Deng Zhiwen believes that industry reshuffle is a good thing. "If you don't optimize or eliminate, you will not be competitive. There will be no quality products. Redwood enterprises should actively seek a way out, improve the quality of mahogany, play cultural brands, and take the boutique route."
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