Foreword: Is it hype or the scarcity of raw materials? It should be a new meeting of the peak season of mahogany furniture production, but the workers have already returned home early in the new year, and when it will start next year is still unknown. This vision stems from the new Convention on International Trade in Endangered Species of Wild Fauna and Flora, which came into force last June.
The impact of rising raw materials and labor will have a significant impact on the Xinhui classical furniture industry, as well as the market reaction in 2014.
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Is it hype, or is it scarce raw materials? This should be a new meeting of the peak season of mahogany furniture production, but the workers have already returned home early in the new year, when will start next year is still unknown! This vision stems from the new Convention on International Trade in Endangered Species of Wild Fauna and Flora, which came into effect last June. The country of origin of mahogany materials will begin to ban mahogany felling and control export trade. This signal directly led to the rise of mahogany raw materials in the second half of the year. How long can the new raw materials hoarded? In the period when furniture and timber prices are upside down, can family-owned small enterprises be able to withstand the pressure of funds? Do not sell or continue to work, the mood of watching and shrouding the traditional industries of this place, "China's classical furniture capital" may face "no rice"? The crisis may appear in the second half of this year, small businesses will be shuffled, and the industry will be upgraded and transformed.
Raw materials soared, production and sales are not prosperous: many manufacturers ahead of the New Year and will be delayed
"At that time I thought I was expensive. I didn't expect that the red rosewood rose by half in half a year!"
In May 2013, Mr. Li of Guangzhou came to the Xinhui to buy a set of red rosewood table. The reporter took him to visit a number of manufacturers, but the manufacturer's offer made him a little embarrassed. "More than 20,000 times higher than my psychological expectations." Mr. Li saw the manufacturer of the new club. He also wanted to go to Taijiang in Taishan. "I gave a phone call to Wu Bingliang. He told me that this price can be started." So, Mr. Li drove the car back to one of the quotes. The low manufacturer, biting his teeth, ordered a 1.3-meter-diameter dinner table and 8 chairs.
“I later learned that the Convention was soon introduced.†Mr. Li’s purchase of a table has a rigid demand, which means he is unaware of the market; however, the Convention brought to the entire classical furniture industry in the second half of last year. Great vibration.
In June last year, the new Convention on International Trade in Endangered Species of Wild Fauna and Flora came into effect, which was seen as the trigger for the soaring price of domestic mahogany furniture. According to the provisions of the Convention, among the Chinese redwood industry materials, there are 7 important redwood species entering the first and second grade protected plant catalogues, which means that these species must have import and export licenses or re-export certificates in order to conduct international trade. .
In addition, Myanmar also announced that it will stop the export of logs from April 1, 2014. The wood must be processed to increase its value before it can be exported. Affected by this, the price of Siamese rosewood and Burmese rosewood have increased significantly this year.
“The rosewood is probably up 50%, and the Burmese rosewood is also rising by 3 or 40%.†Pu Zhiyou, a designer of intelligent classical living furniture, told reporters that the current mainstay of the mahogany furniture market is Burmese rosewood, about 50 cm of raw materials, and the price has risen to 2.8. 10,000/ton, and the price half a year ago was only about 13,000 yuan.
In the face of this market volatility, what measures does the Xinhui classical furniture industry have to deal with? Lin Weihua, general manager of Xinhui Classical Furniture City, said: "In fact, the news of restricted raw material exports has already spread. The manufacturers have already hoarded a lot of raw materials to cope with the impact." Lin Weihua told reporters that the local manufacturers of Xinhui have Inventories, market supply is expected to remain sustainable in the short term. “I think raw materials will increase in price, and the impact on the industry will really show up in the second half of the year.†Lin Weihua once worked for Xinhui’s state-owned timber import and export company. He believes that after this round of increase, the redwood market will slowly return to rationality. Enter a slow rise phase.
Hype? The 2008 financial tsunami triggered a major market change
In fact, the rosewood raw material market has begun to consolidate in recent days. According to market information, after several months of high-level operation, Sian rosewood (sour rosewood) and large-fruit rosewood (Burma rosewood) have been adjusted. According to the merchants, near the end of the year, furniture manufacturers and various business operators need a lot of capital turnover. Under this circumstance, the mentality of merchants withdrawing funds is further urgent, but the market trading atmosphere is very deserted, and the transaction volume has fallen sharply.
According to reports, there are more than a dozen timber trading companies that supply raw materials in Xinhui, and there are many timber collectors for investment purposes. At present, mahogany furniture faces a resource bottleneck, and its price trend is closely related to resource supply. If raw material pressure cannot be effectively alleviated, this year's mahogany furniture will increase in price.
"The new round of rosewood furniture prices are not speculation. As the United Nations strengthens the protection of scarce ecological resources, price increases are an inevitable law. Friends who are interested in the Redwoods family should choose rational choices." Pu Zhiyou posted several photos on WeChat. The pictures of mahogany materials suggest that there are still problems in the production cycle of mahogany furniture. Therefore, the prices of households and timbers are upside down, and the increase in furniture cannot keep up with the increase in timber. Consumers are still in the stage of “missingâ€.
The word "hype" evokes the memory of the Xinhui classical furniture industry's market changes caused by the 2008 financial tsunami. Since the beginning of 2005, the price of domestic mahogany furniture has been rapidly lifted by merchants. The investment theory, collection theory, and raw material scarcity of mahogany furniture have flooded the market, but it has fallen sharply in less than three years, just like a roller coaster ride.
In 2007, it skyrocketed, and in 2008 it plummeted. In the second half of 2009, it began to strengthen again. In 2010, it skyrocketed. After October 2011, it began to call back. The Xinhui mahogany furniture industry has experienced several ups and downs following the market environment. However, many industry insiders interviewed that the mahogany market is not as effective as the influx of hot money in 2007. cut back.
"At present, the classical furniture industry of Xinhui has not shown a big effect." Lin Weihua believes that the price increase of raw materials directly affects the furniture manufacturers, the ex-factory price increases, and the sales volume will inevitably decrease. In the furniture industry, the price of raw materials is reflected in furniture, usually in a period of more than three months. That is to say, the raw materials that began to skyrocket in June last year are now the time to accept the test of the terminal market. At present, this is the peak season of furniture sales, but the sales of classical furniture of Xinhui is not prosperous, and there are not only manufacturers and merchants, but also buyers.
"At present, many manufacturers in the new club are investing 700,000 to 1 million to build a workshop-style factory. Now the sales price has doubled, but the increase is basically consumed in raw materials. The dilemma of capital flow will soon appear. Pu Zhiyou said that the dilemma is that "after the sale of this set of furniture, the cost of re-doing a set is higher than the price," but the factory will not work if it is not sold or stopped. For many manufacturers, the test has just begun, the return on capital costs has slowed down, and business risks have increased.
Xinhui mahogany classical furniture industry or Yingda shuffle
"In this round of bullish market, there are plenty of furniture manufacturers with sufficient funds to take off hundreds of tons of wood." According to industry sources, the price of mahogany raw materials is too fast in the short term. Most furniture factories are out of Cost considerations, a lot of cautious about starting raw materials, strong manufacturers can smash raw materials, reserve capacity for some time in the future, but no strength can only rise and fall with material prices, rosewood prices continue to rise, it is likely to bring industry reshuffle .
"The rise in raw materials is not necessarily a bad thing." Lin Weihua agrees that this price hike may bring the industry to reshuffle. "After the overall increase in timber prices, people may think that mahogany furniture companies are more profitable. In fact, on the contrary, this will bring The major reshuffle and transformation of the mahogany furniture industry. Lin Weihua expects raw materials will continue to rise this year, and the reshuffle will begin in the second half of the year. "At present, the supply of precious materials is tight, and the price continues to rise, which will limit the development of some large-scale antique furniture enterprises that produce large-scale goods. Some small manufacturers will face the danger of being eliminated." Product quality and process requirements, "refinement does not seek quantity, in order to sell higher prices."
Many insiders agree with this statement. Due to the skyrocketing raw materials, enterprises with insufficient funds and poor processing technology may be cleaned up in this tide of price hikes. The other part of the mahogany furniture company will continue to strengthen the management, profitability and branding, thus promoting the healthy development of the mahogany furniture industry.
"In today's increasingly scarce materials, we should cherish the hard-won valuable materials, pay attention to the design and production level of furniture, and position the production of furniture with the mentality of making fine works and artworks, giving the rare and rare scarce materials. The second life, also let good boutique furniture pass on to our descendants, this is also a sense of social responsibility shouldered by our contemporary antique furniture enterprises, and make its due contribution to promoting the traditional Chinese furniture art culture." Previously, Guangdong Wu Bingliang, vice president of the Provincial Furniture Association, vice president of the Guangdong Arts and Crafts Association, and Chairman of Wu Shixinglong Ming Style Furniture Art Co., Ltd., said that he was said.
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