The price of construction wood has seen a significant increase, driven by factors such as the U.S. economic recovery and fluctuating global timber markets. However, despite these trends, there is very little imported timber available for furniture production. Many claims that rising furniture prices are due to increased raw material costs are more of an excuse than a genuine reflection of the market. In 2012, China’s log imports saw their first decline in years, dropping by 4.433 million cubic meters compared to the same period in 2011. While New Zealand timber imports rose by 4.59%, other major timber sources experienced a broad decline. Russian timber, for instance, fell by 20.52% in volume.
Meanwhile, timber prices in Southeast Asia have been on a downward trend, while pine from North America has seen a surge. A seasoned wood trade professional with two decades of experience noted that U.S., Canadian, New Zealand, and Australian pine is primarily used for construction rather than furniture, meaning that increases in building wood prices mainly affect contractors and developers, not the furniture industry.
At Rugao Port in Jiangsu Province, automated systems work around the clock, handling large shipments of Russian white pine from cargo ships. The port is bustling with activity, reflecting the ongoing demand for timber. Meanwhile, Song Huiqun, general manager of Jiangsu Hongrong International Trade Co., Ltd., has been busy meeting clients across the country. This recent price hike has created new opportunities for his business, which has operated in the trade for over a decade.
According to his purchase orders, domestic white timber—commonly known as Baisong in China—has risen by 45.5%. In April 2012, logs measuring 14 to 20 centimeters in diameter were priced at $112 per cubic meter, but this year, the price has climbed to $163. Although prices vary slightly between ports, the import of Australian radiata pine, specifically the Chinese model A, has exceeded 1,000 yuan per cubic meter, up from 930 yuan just before the Spring Festival.
“Raw material prices have risen rapidly, but it takes time for these increases to reach finished products,†said Song Huiqun. He emphasized that the current situation is still evolving and that companies with existing stock can take advantage of the market shift to clear inventory.
In North America, wood prices continue to rise, partly due to increased demand for post-hurricane reconstruction and the removal of punitive tariffs on Canadian cork timber. As a result, more timber is being directed to the U.S. market, reducing the supply to China.
Data from January to November 2012 shows that U.S. housing starts reached 750,000 units, a 20% increase from the previous year. Industry experts predict that 2013 will see over 900,000 housing starts, possibly even surpassing one million. Despite this, Song Huiqun clarified that the price hikes in building materials do not directly impact furniture-grade wood.
Currently, the most commonly imported timber in China includes spruce, hemlock, and red pine, which are mainly used for interior decoration, outdoor projects, and construction, with furniture being a minor application. Prices for these three types of wood rose from $284 per cubic meter in the same period last year to $408 by February 15, 2013.
In Beijing’s Dongba market, imported furniture wood such as walnut, oak, maple, and cherry remains unaffected by the recent price fluctuations. On February 17, the hardwood market remained closed, with Burmese and Myanmar rosewood prices relatively stable. Due to the Spring Festival holiday, shipments of red walnuts have slowed, and the market is currently quiet.
“In addition, the process of passing on raw material price increases to final products takes time. If a furniture company has a large inventory, now could be a good opportunity to reduce stock,†said a manager.
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