Redwood raw material prices are stable and the industry is promising

Since the second half of 2011, the Xianyou mahogany furniture industry has been affected by the global economic downturn and the regulation of domestic real estate. How big is this impact on the market of Xianyou mahogany furniture ? The author interviewed several key markets and enterprises in Xianyou and reached the following conclusions.

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Raw material prices have not plummeted

In September and October of 2011, the price of mahogany furniture raw materials market, such as red rosewood, has been in a stable range, and has not changed with the influence of market demand. The small material has oversupply phenomenon, and the price has slightly declined. The price of the material is still very stable and is maintained at the previous level.

Until the author's manuscript, the price of raw materials of Xianyou Redwood has declined, but the decline is not very large, and it is within the controllable range of timber merchants. Every year is similar to this situation. At the end of the year, most furniture manufacturers no longer buy wood, and they will buy it after the end of the year. According to several wood merchants I know, the whole environment was not very good in 2011. I went home very early and did not enter the wood. Some people say that the recent decline in timber market prices is not realistic. There is a decline, only a small number of merchants sell wood for the purpose of cashing in and out of the loan, and the strong timber merchants will rarely cut prices significantly.

Xianyou Redwood Industry Health Up

From October 2011 to now, the popularity of Xianyou mahogany furniture market is relatively deserted, and some businesses are not very good, and some people even pessimistically say that this market will collapse. However, according to the author's understanding, the development of Xianyou mahogany furniture industry in recent years is very healthy, and the industry is positive.

Xianyou currently has three types of mahogany furniture enterprises: First, large enterprises and brand enterprises, whose products are in short supply, and almost every day, a large number of customers buy goods and order, they will never easily cut prices. Second, some small manufacturers and small workshops are specialized in processing products for these large enterprises. They are attached to these large enterprises. Although the profits are not very high, the risks are almost zero. This is a processing manufacturer. Third, there are some manufacturers, their own factories are not big, or simply do not have factories, directly from some small manufacturers, mainly to sell goods.

At present, there are some small manufacturers, small workshops and enterprises with insufficient financial strength. In order to repay bank loans or private loans, they have to sell some of the timber and furniture in stock to reduce the funds. This is a problem in the corporate capital chain, not a problem in the industry, and the development of the industry is still healthy and upward.

Prospects for the redwood industry are promising

Recently, some media reported that the price of mahogany furniture plummeted, and even the market collapse said. According to the author's understanding, this possibility is very small, and it is even more impossible in Xianyou. In the entire mahogany furniture industry, most of the world's best wood is sold to Xianyou, and the best craftsmanship is also in Xianyou. This potential and advantages are not found anywhere else. At present, more than 80% of mahogany furniture, rosewood or higher-grade materials sold in the national mahogany market are produced by Xianyou. As the most characteristic cultural industry and pillar industry of Xianyou, classical craft furniture has rapidly developed from 500 million yuan in 2006 to 16 billion yuan in 2011. This is a very rapid industrial development trend. The county government of Xianyou County proposed that by 2015, the output value of the entire mahogany furniture industry should reach 30 billion yuan or more.

At present, the mahogany furniture market, whether it is raw materials or finished products, has a sluggish sales phenomenon, because manufacturers, distributors and consumers are taking a wait-and-see attitude. There is a saying in the mall that "business does not go up," which is the phenomenon today. In general, the development prospects of the mahogany furniture industry are promising. It is normal for short-term price cuts to occur. If an industry has only been rising or not, it is not normal.