In 2013, the mahogany market saw a significant shift. As the new year approached in early 2014, Chinese consumers were increasingly focused on the upcoming Spring Festival, which meant that it would take some time to assess how the market would perform during this period. After more than half a year of rising prices, many buyers were left wondering: What lies ahead for the mahogany furniture market? Is now a good time to purchase? And how can the "rigid demand" for mahogany be effectively met during the festive season?
Before the Spring Festival, material prices remained stable with no signs of a decline. From the perspective of raw material sources and trading ports, there was no indication of price reductions. Historically, before the festival, there is often a period of price adjustments and loan repayments, but this year, due to ongoing material shortages, prices have stabilized instead.
Two other types of rosewood from Asia, Bali Dalbergia and Austenitic Dalbergia, had not seen major price increases initially. However, since the end of July 2013, they followed the trend, rising by 150% to 200% over four months, reaching their peak by November. Currently, these materials remain strong in value and are unlikely to drop soon.
Another notable example is Burmese purple pear, which surged by 300% in August, September, and October last year, only to fall by a third in November and December. The price dropped from around 36,000 yuan per ton to between 26,000 and 28,000 yuan. It has since stabilized at this level. Before its dramatic rise, it was priced below 10,000 yuan per ton.
Several factors have contributed to the inevitable rise in rosewood furniture prices. Many mahogany enthusiasts are familiar with a popular saying on WeChat: “If you don’t buy mahogany furniture now, you’ll regret it later.†This isn’t just a joke—it reflects the current reality. Post-Spring Festival, the price increase is almost certain, driven by multiple reasons.
Firstly, the cost of raw materials is expected to rise slightly in the future. Most manufacturers in the industry do not stockpile materials due to limited financial capacity, preferring to purchase as needed. With the construction season starting around late February to early March, manufacturers will increase their purchases, pushing up material prices.
Secondly, improving economic conditions are boosting sales across various consumer industries, including rosewood furniture. According to data, the China Manufacturing Purchasing Managers Index (PMI) reached 51.0% in December 2013, 0.2 percentage points above the annual average. This marked the 15th consecutive month above the 50% threshold, indicating sustained growth. If PMI accurately reflects economic trends, people’s expectations for the new leadership have risen, and optimism about economic improvement continues to grow. This positive sentiment is helping to drive the overall market, encouraging stronger sales of rosewood furniture.
At the same time, growing awareness of the value of mahogany furniture is increasing consumer desire. Mahogany furniture represents traditional Chinese culture and carries deep artistic and cultural significance. Compared to panel or European-style furniture, it offers distinct advantages—being eco-friendly, non-polluting, and beneficial to health. As an elite product, when the economy improves and purchasing power rises, people’s interest in mahogany furniture grows exponentially. Scarcity drives up value, leading to increased competition and higher prices.
Moreover, current inflationary pressures are making mahogany furniture an attractive investment option. In 2013, real estate markets in several cities crashed, exposing risks in property investments. Gold prices fell by over 30% within a year, discouraging investors. Stock markets remained sluggish, with A-share indices even lower than previous years. Given these uncertainties, the appreciation potential of mahogany furniture appears promising. Even conservatively estimated, it appreciated by 20% to 30% annually. More investors are turning to mahogany, making it a hot commodity and keeping prices elevated.
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Dongguan HengTaichang Doors Co, Ltd. , https://www.dghtcdoor.com