Redwood furniture raw material market decoding

In 2011, the timber market was relatively stable and rising. Looking ahead to 2012, what is the trend of the market? We will face good opportunities and once again usher in an industry leap. Or the industry inflection point, triggering the industry reshuffle? All of this is still unknown, but in any case, if a company wants to emerge in the new year and wins the first chance, it needs to work out strategies, make a summary, and find the key points of the problem. It must integrate itself both in the market and management. There is a clear understanding of the situation.

Review and Prospect: Decoding raw material market In 2011, Xianyou has become one of the largest gathering places for high-end wood in China. Looking back at the trend of the whole year, despite the frequent domestic policies affecting the operation of the market, “the breeze swept over and the water wave was not booming”. In the first three quarters of 2011, stable and rapid development was maintained. In the latter quarter, the purchasing power of the end-user consumer groups of the industry was relatively low. Dealers also held a “wait and see” attitude and waited for opportunities. Although not as good as the previous period, prices remained strong.

The mahogany market review in 2011 went through the Xianyou Redwood market after the economic crisis in 2008. It is obviously a bit more certainty. The main reason is that the Xianyou timber market has gradually become more professional, rational, and mature.

Most timber merchants consciously form brand awareness and maintain their own operating rhythm while carrying out initial accumulation. Each wood industry can understand the pulse of market demand. After five years of development, Xianyou mahogany furniture accounted for more than 60% of the domestic high-end market, and showed a vigorous vitality. With such a large market, the demand for wood remains large. They all have a corresponding customer base; they have a strong market acumen. Under the influence of the global environment in 2011, it was pointed out in September that the Hongmu market will experience a silent war, prudence and defense being the main tone of most timber merchants. They all agreed that after the 2008 encounter, they had more experience. From the first half of May onwards, it is just like walking on thin ice, rational business, generally 20-30 tons of advanced goods, only after the sale is finished, to reduce the investment risk; can pay attention to long-term interests. Timber dealers are increasingly aware that the problem of shortage of timber resources is increasing day by day and brutally placed before us. Hainan huanghuali and Vietnam huanghuali are on the verge of extinction and are hard to find. They have become “high price”; as the protagonists of the market, red rosewood, lobular rosewood and big leaf red sandalwood are also in a deprived position. Phoebe nanmu is hard to find. The new material is now also protected by the government... This situation makes them believe that prices still have some room for growth.

In December, the reporter visited several wood companies and learned that, despite the market atmosphere that has waited and watched, the recent decline in market conditions has eased, and it is evident that the entire market is continuously recovering. Wood circulation is a bridge between resources and demand. Changes in the mahogany market directly depend on changes in supply and demand. In the case of mahogany furniture "cold", raw materials also fell slightly, but the raw materials for the small materials fell. The prices of aniseed materials remained stable, and price fluctuations were normal categories. Affected by the origin of lobular rosewood fell about 10%; market demand for red rosewood, the price remained stable, especially good material; Huanghua pear was rising prices, medium-sized yellow material is 4 million per ton Above the yuan, the price of the larger yellow plates is as high as 8 million yuan. In Jinyou, which is also booming in Xianyou, there are signs of price increases.

Tianxia Wood told reporters that the wood market in 2011 was generally happy, especially before October, selling more than 10 tons a day. In November and December, there were some downturns, but business opportunities still existed at the end of the year. The key to seeing the wood industry itself is its business model. According to the person in charge of Xianyi Wood, the price of timber in the market was very transparent in 2011, there was not much profit in the middle, and the bubble component became less and less, giving the impression of the “plunge” to outsiders. In fact, the price of good material is basically stable, and there is a fall within 10%-15%. It is a normal phenomenon, and the interval for the drop of bad materials is about 20%-30%. In order to sell timber for cash for the coming New Year, capital-constrained businesses will look for opportunities and cut prices appropriately, which is also an annual market practice. Xiaolong Wood Industry Co., Ltd. stated that both wood merchants and classical furniture factories have large inventories, and they first have favorable raw material prices, which has attracted a group of foreign purchasers to purchase. Huazhihua Wood Co., Ltd. stated that we have our own customer base and we can still maintain a stable performance. In addition to the increase in the number of newly established factories in recent years, the amount of red rosewood has also increased dramatically. The amount of consumables is huge, and the market at the end of the year is still quite substantial.

What will happen to the timber market in 2012 in Hongma market? Can it be "awesome"? This has become one of the issues explored by industry professionals. Although everyone upholds their own set of logic or perspective, after a quick adjustment in the new year, in 2012, we must observe the situation, seize the opportunity, and make every move.

In 2012, we noticed that the current Chinese economy has returned to autonomous growth. Policies have clearly begun to pick up, and macro-control measures have become more mature. As the deposit reserve ratio falls into the downward adjustment cycle, Ma Jun, a well-known economist in China, said that due to loosening of policies in the second and third quarters of next year, there may be a recovery in real estate sales, affordable housing, and infrastructure investment. This also shows that "winter is coming and spring is not far".

In recent years, although Hainan Huanghua Pear and Vietnam Pear have remained high, they have no price, and they are “red favored” red twigs, lack of resources, and the market demand can not keep up with the supply volume. "It is still not moving, and the price has been growing slightly. Lu Yi, one of the largest suppliers of red rosewood furniture in China, believes that red bricks with historical value are different from real estate, so the policy will not have a significant impact. In 2012, it will tend to be steady and rising. In the case of India, which has a mahogany factory, it is believed that the lobular rosewood is the "king of wood". In the long run, it is the most valuable. Although it has recently fallen by 10%, it will certainly rise in the future. The market trend of bigleaf rosewood will fall.

According to the analysis of the situation in the mahogany industry, the relationship between supply and demand will only become more and more tense. Therefore, there is not much reason and room for downward adjustment of prices. The most likely is that the relationship between supply and demand is a gesture of “prevention and retreat”. First, so far, it is learned from Xianyou Wood Network that there is a large stock of redwood in Dalian Port, Shanghai Port, and Shenzhen Port. Second, furniture manufacturers are facing a reshuffle and the market adjustment will take some time. Finally, from the domestic demand, the supply and demand of wood is still relatively large. Tianxia Wood believes that opportunities are sold out and gives an optimistic forecast that furniture companies will purchase raw materials for a new round of procurement, material and production in order to operate normally. In this overall atmosphere, the wood will remain stable and there will even be a slight increase in opportunities.

In addition to strong financial resources, we must face the market calmly, it is a crucial step. For example, timely adjustment of business direction, understanding of market conditions, there are many ways to purchase channels, integrity management, customer satisfaction. Of course, in the fierce competition, those who can survive will win if they can seize the opportunity.