**Mahogany Furniture Prices Continue to Rise**
Due to economic recovery and a sharp increase in raw material costs, Guangdong Hongmu Furniture has experienced a new wave of price hikes this year. Compared to last year, prices have gone up by 20% to 30%. Industry insiders believe that while there may still be room for further price increases, the trend is expected to stabilize rather than fluctuate wildly.
According to media sources, Fujian Tianhong, a leading company in the mahogany furniture industry, raised its prices at the start of 2011, implementing a pricing model based on weight. According to sales staff, starting from January 1st, the prices of Huanghuali and Lobular Rosewood furniture increased by 300 yuan per kilogram, reaching 3,899 yuan and 1,999 yuan per kilogram respectively. Laos Red Rosewood saw an increase of 40–459 yuan per kilogram, while Chicken Wing Wood rose by 20–219 yuan per kilogram. Laos Rosewood and Burmese Rosewood also saw price hikes of 30–199 yuan per kilogram.
In February, Tianhong announced another round of price increases. The prices of Laos Red Rosewood, Chicken Wing Wood, Laos Rose Pear, and Burmese Rosewood were raised by 40, 20, and 30 yuan per kilogram respectively. The price of Huanghuali and Lobular Rosewood is still under review.
Additionally, due to high demand, even basic materials like Red Sandalwood and Vietnamese Pear Blossom require more than four months to be available. The longer the material used, the higher the cost. For example, items made with Red Sandalwood measuring 170–195 cm saw a 30% price increase, while those over 195 cm faced a 50% rise. Items over 150 cm in length saw a 100% increase, and materials over 170 cm are now extremely scarce.
Many mahogany furniture companies have also raised their prices this year, including Liantianhong. Peng Bin, Deputy General Manager of Guangdong Rongshen Auction House and a long-time researcher of mahogany furniture, noted that Guangdong's mahogany furniture has seen a new wave of price increases, rising by 20% to 30% compared to last year. The current price of Red Sandalwood exceeds 300,000 yuan per ton, while Yellow Pear is over 600,000 yuan per ton. Even the cheaper Red Rosewood has jumped from 30,000–40,000 yuan per ton to 60,000 yuan per ton, with a 50% increase in raw material costs.
This year, the price surge began with auctions. On January 9th, during the Ming and Qing Dynasties Classical Furniture Auction in Nanjing, a pair of Ming Dynasty Huanghuali sculptures, the Long Wen Shou Zi Fangjiao Cabinet, attracted many collectors and eventually sold for 8.5 million yuan.
Peng Bin mentioned that since the end of last year, mahogany furniture auction prices have reached record highs. At the China Guardian Autumn Auctions last year, the “Contemporary Yong Yong Ming-Pearl Furniture Boutique†featured 60 auction items, all of which were sold, with a total transaction value of 210 million yuan. Several pieces of Huanghuali furniture fetched over ten million yuan each.
During the autumn auction, Huanghuali furniture set new records. A piece called the “Qianlong Qianlong Huanglian Pear Dragon Pattern Four-Piece Cabinet Pair†sold for 39.76 million yuan, while the “Bright Yellow Pear Tufted Horseshoe Leg Six-Collar Shelf Bed†was sold for 43.12 million yuan.
Peng Bin said that the economic recovery is clear, and he expects mahogany furniture prices to continue rising, though not sharply. He pointed out that the cost of raw materials for all types of mahogany furniture has doubled over the past two years, making a wild price surge unlikely this year. In places like Jiangmen and Nanhai, where mahogany furniture is produced, the market trend is relatively stable, with little speculation. The recent price increases may mainly be driven by household consumption demand.
With over a decade of experience tracking the mahogany market, Peng Bin recalls that in the early 2000s, mahogany prices skyrocketed but then fell back to pre-2006 levels after the 2008 Olympics. At the beginning of last year, raw material prices started to rise again, with an average increase of around 30% by the second half of the year.
**Special Reminder: The Appreciation Potential of Rosewood**
Peng Bin believes that the main reason for the rising prices of rosewood is the scarcity of log resources. Most mahogany in the domestic market is imported from Myanmar, Laos, and other Southeast Asian countries. In recent years, these countries have imposed stricter controls on logging, leading to a sharp drop in supply. For example, Indonesia banned ebony logging last year, causing a severe shortage of raw materials. In the first half of this year, Vietnam also tightened restrictions on the export of redwood logs like Huanghuali.
Peng Bin explained that the best type of redwood is Hainan Huanghua Pear, followed by Ye Tan, Vietnam Rose Pear, Big Purple Leaf Tan, and Rosewood. Among them, Hainan Huanghua Pear is already very scarce and is expected to appreciate in the future. However, due to its high price, only a few people can afford it, so the market remains small. Currently, the most sought-after item is the Acid Branch, as it offers a mid-range price that is more accessible to ordinary consumers.
"With a set of rosewood furniture, you need between 200,000 and 300,000 yuan. If it's complete, it could cost 700,000 to 800,000 yuan," Peng Bin said. He believes that medium-to-high-end rosewood furniture has great potential for future growth because the demand is strong. After the raw material shortage, appreciation will likely accelerate.
Industry sources say that while the best time to buy may have passed, in the long run, due to the scarcity of raw materials, the price trend of mahogany furniture must continue to rise.
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