The scarcity of rosewood tree species and the frenzied surge in timber prices are putting enormous pressure on rosewood furniture companies in terms of profit and survival; but on the other hand, they have also raised the threshold for the industry, which is a very good boost for the sector.

Seven types of wood listed as controlled endangered species

"Even with money now, you may not necessarily be able to buy timber; price increases for Siamese rosewood furniture are a foregone conclusion," Wu Chiyu said.

Indeed, news of the frenzied rush for Siamese rosewood raw materials has been overwhelming recently, with many timber dealers saying, "We'll take as much Siamese rosewood as there is; you can pay a deposit before seeing the goods!"

And all of this starts with the Bangkok conference in March this year, when the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES) added 7 of the 33 rosewood tree species in China's national standard GB18107-2000 "Rosewood" to the controlled species list. These seven types of wood include: red sandalwood (Pterocarpus santalinus), Siamese rosewood (Dalbergia cochinchinensis), Central American rosewood (Dalbergia retusa), cocobolo (Dalbergia retusa), Belize rosewood (Dalbergia stevensonii), African blackwood (Dalbergia melanoxylon), and Brazilian rosewood (Dalbergia nigra).

Apart from Brazilian rosewood, Central American rosewood, and Belize rosewood products, which are relatively rare in China, red sandalwood, Siamese rosewood, African blackwood, and cocobolo are all common raw materials for rosewood products in China. Siamese rosewood is currently the hottest material circulating in the market. After the new additions to CITES Appendix II officially took effect on June 12, imports and exports of Siamese rosewood are subject to permit controls and will be restricted in trade going forward.

Rosewood furniture experts believe that the listing of Siamese rosewood as endangered makes scarcity and soaring prices inevitable, and this upward trend is likely to continue spreading, possibly even repeating the history of 2007 when huanghuali surged 100-fold.

Future price increases for rosewood furniture hard to predict

Industry insiders say the scarcity and frenzied surge of Siamese rosewood have a profound impact on the entire industry. The shortage of raw material resources in the industry is first reflected in merchants' profits and survival issues; costs keep climbing, which in effect squeezes profits. On the other hand, it also raises the threshold for the industry, which is a very good cleanup for the sector.

Market visits have found that compared with the same period last year, it is not only Siamese rosewood that has risen in price; materials such as Burmese rosewood and small-leaf red sandalwood have also been on an upward trend, and future price increases for rosewood furniture are hard to predict.

Regarding purchasing, experts emphasize that buyers must confirm the material's properties and place of origin, and at the same time ensure the purity and precision of the wood, because although some furniture is made of Siamese rosewood, it may contain sapwood or have serious splicing and patching. Different sizes of timber also vary greatly in market price.

As is well known, rosewood (suanzhi) includes seven types: Dalbergia cochinchinensis, Dalbergia bariensis, Dalbergia sissoo, Dalbergia frutescens, Dalbergia retusa, Dalbergia oliveri, and Dalbergia retusa. Different materials vary greatly in price. Dalbergia cochinchinensis, commonly known as Siamese rosewood, originates in Laos and is the most famous and precious wood among rosewoods; together with small-leaf red sandalwood and huanghuali, it is known as one of the three great tribute woods used by the imperial court. Dalbergia cochinchinensis has an air-dry density of 1.01~1.09 g/cm3, is glossy, high in strength, hard, highly corrosion-resistant, strongly resistant to insects, with smooth lines and a warm, simple character; even without carving, it already contains profound inner richness and shows its preciousness. Within every inch, one can also discover its finest and best side.