The price of mahogany furniture has been on the rise this year, driven by economic recovery and a sharp increase in raw material costs. Guangdong Hongmu Furniture, a major player in the industry, has recently announced a new round of price hikes, with prices increasing by 20% to 30% compared to last year. Industry experts believe that while further increases are possible, the trend is expected to remain relatively stable rather than fluctuating wildly.
According to media reports, Fujian Tianhong, one of the leading companies in the mahogany furniture sector, raised its prices at the start of 2011, adopting a pricing model based on weight. Sales representatives noted that 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 to 459 yuan per kilogram, while chicken wing wood rose by 20 to 219 yuan per kilogram. Prices for Laos rosewood and Burmese rosewood also went up by 30 to 199 yuan per kilogram.
In February, Tianhong announced another price increase, raising the cost of Laos red rosewood, chicken wing wood, Laos rose pear, and Burmese rosewood by 40, 20, and 30 yuan per kilogram respectively. The price of Huanghuali and lobular rosewood is still under review.
With strong demand, even common materials like red sandalwood and Vietnamese pear require more than four months of lead time. The longer the material used, the higher the price. For example, items made from red sandalwood over 170-195 cm in length see a 30% price increase, while those over 195 cm face a 50% jump. Pear wood over 150 cm can increase by as much as 100%, and pieces over 170 cm are nearly impossible to find.
Many mahogany furniture companies have raised prices this year, including Liantianhong. Peng Bin, deputy general manager of Guangdong Rongshen Auction House and a long-time researcher in the field, confirmed that Guangdong’s mahogany furniture has seen a significant price increase, with some materials rising by up to 30%. Red sandalwood now exceeds 300,000 yuan per ton, while yellow pear exceeds 600,000 yuan per ton. Even cheaper red rosewood has doubled in price, from 30,000-40,000 yuan per ton to 60,000 yuan per ton, representing a 50% increase in raw material costs.
This year, the auction market has also seen a surge in mahogany furniture prices. On January 9th, during the Ming and Qing Dynasties Classical Furniture Auction in Nanjing, a pair of Ming Dynasty Huanghuali sculptures sold for 8.5 million yuan. Peng Bin noted that since the end of last year, mahogany furniture auctions have set new records. At the China Guardian Autumn Auctions, the “Contemporary Yong Yong Ming-Pearl Furniture Boutique†featured 60 items, all of which were sold, totaling 210 million yuan. Several pieces of Huanghuali furniture fetched over ten million yuan.
During the autumn auction season, Huanghuali furniture reached record highs. A piece called “Qianlong Qianlong Huanglian Pear Dragon Pattern Four-Piece Cabinet Pair†sold for 39.76 million yuan, while another item, “Bright Yellow Pear Tufted Horseshoe Leg Six-Collar Shelf Bed,†was sold for 43.12 million yuan.
Peng Bin believes that although the economic recovery is clear, mahogany furniture prices will continue to rise, but not at an explosive rate. He notes that raw material costs have doubled over the past two years, making another sharp increase unlikely. In regions like Jiangmen and Nanhai, where most mahogany furniture is produced, the price trend is stable, with little speculation involved. The recent price increases may mainly be driven by household demand.
With over a decade of experience tracking the mahogany market, Peng Bin recalls that prices have fluctuated dramatically. From 2005 to 2007, prices soared by 3 to 5 times, but after the 2008 Olympics, they dropped back to early 2006 levels. At the start of last year, raw material prices began to rise again, and by the second half of the year, most types had increased by around 30%.
A special note: The appreciation potential of rosewood
Peng Bin explains that the main reason for the rising prices of rosewood is the scarcity of log resources. Most mahogany in the domestic market comes from Myanmar, Laos, and other Southeast Asian countries. In recent years, these countries have imposed stricter controls on logging, leading to a sharp decline in supply. For example, Indonesia banned ebony logging last year, causing a severe shortage. Vietnam also tightened export regulations on huanghuali logs in the first half of this year.
Peng Bin points out 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 extremely rare 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 material is acid branch, as it offers a medium price point that is accessible to ordinary consumers.
“Buying a set of rosewood furniture can cost between 200,000 to 300,000 yuan, and a complete set could cost 700,000 to 800,000 yuan,†Peng Bin said. He believes that the high-value, mid-to-high-end mahogany furniture has significant growth potential because demand is strong. After the scarcity of raw materials, appreciation will likely accelerate.
Industry sources say that while the best time to buy may have passed, in the long term, due to the limited supply of raw materials, the price trend of mahogany furniture is expected to continue upward.
Women's Chest Bag,Waterproof Chest Bag,Travel Bag Chest Bag,Fashion Chest Bag
GDMK GROUP WEIHAI SHOES CO., LTD. , https://www.gdmkgroup.com