The new CITES Convention, which was officially implemented on June 12, puts seven species of redwood trees on the control list, while Vietnam’s rosewood exports have recently raised taxes by 200%. Under the double blow, redwood raw materials have become more rare, and the mahogany furniture market is once again facing Price pressure.
Tax increase + control of mahogany furniture is once again facing price pressure
It is reported that Vietnam's rosewood exports have recently raised taxes by 200%, taking Sian Dalbergia as an example. From the original customs approval tax price of 3,900 US dollars to 15,000 US dollars, the original second-line rosewood, such as rosewood, increased from the original 500 US dollars to 1,500 US dollars. Tariffs have risen sharply.
In addition to encountering trade barriers in timber exporting countries, redwood raw materials are also subject to international conventions. In March of this year, the 16th Conference of the States Parties to the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) was held in Bangkok, Thailand. At this meeting, the CITES Convention listed 7 of the 33 species of redwood species listed in our national standard GB18107-2000 "Redwood" as controlled species. According to professionals, among the seven regulated species, S. chinensis, Dwarf Dalbergia, Belize Dalbergia and L. serrata are currently used in the mahogany industry.
The CITES Convention, which was officially implemented on the 12th of this month, stipulates that the species listed in Appendix I, such as Brazilian black rosewood, prohibit commercial international trade; and the species listed in Appendix II, such as dimpled Dalbergia, Belize Dalbergia and L. Black Dalbergia must have an import and export permit or a certificate of re-export for international trade.
At present, China's raw materials for mahogany furniture mainly rely on imports, and strict control and tariff increase will definitely increase the price of raw materials for mahogany. However, the industry believes that the price increase of mahogany raw materials will not be directly reflected in the terminal retail market in the short term. At present, the market of mahogany products corresponding to these redwood species is relatively stable, but the price of mahogany furniture will definitely rise in the future.
On the one hand, the market is on the sidelines, on the other hand, the vice president of the China Timber and Wood Products Circulation Association and the director of the China Redwood Committee, Che Chang. The dealer also has some stocks that will help to stabilize the market price. In addition, the mahogany finished product market has a certain lag with respect to the price of the mahogany raw materials. He believes that from the second half of this year, with the autumn season of mahogany furniture sales and the implementation of the CITES Convention, the price of some redwood products will rise.
Increased market competition or promote shuffle in the mahogany furniture industry
In recent years, the import volume of China's redwood raw materials has been increasing year by year. In 2012, China's customs timber import data showed that in 2012 China's cumulative imports of mahogany reached 862,800 cubic meters, an increase of 30.37% over the same period of last year, an increase of 200,000 cubic meters; among which rosewood logs were imported. 757,200 cubic meters, an increase of 34%, an increase of nearly 200,000 cubic meters; sawn timber imports of 74,400 cubic meters, an increase of 9.1%.
Despite the sharp increase in imports of rosewood, the sales of the entire mahogany furniture are not very good due to the large environmental factors. In the fierce market competition, many small-scale mahogany enterprises with family-style workshops will be gradually eliminated by the market because of lack of marketing channels and brand support. Ge Haizhen, head of Jiejia Redwood Zhejiang District, pointed out that the mahogany terminal market is currently in a situation of gluttony, and the redwood enterprises are facing a new round of reshuffle. The recent rise in raw material prices will accelerate the pace of reshuffle, because large enterprises and SMEs will have a large gap in the purchase price of raw materials.
The vice president of the China Wood and Wood Products Circulation Association and the Secretary-General of the China Redwood Committee, Che Chang, also said that the redwood industry has indeed reached an industrial restructuring and upgrading. At present, the top ten enterprises in the rosewood industry account for less than 1% of the entire market, and the market is immature. At the same time, he also for many small and medium-sized mahogany enterprises, pointing out that in the future can produce accessories for large mahogany enterprises, or transform into a mahogany service industry.
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