In the past 2011, for the vast majority of investment, the bitterness was only known to the public. Whether it was a smashed bank financial product, or the madly rising gold at the beginning of the year, and the bubbly bubble, it was all a flash in the pan. Rosewood furniture that has been rising since 2009, on the tail of 2011, caught up with this last train of sadness. Whether the price of mahogany will continue to repeat the tragedy of 2007, different investors have different views.
The reason for the real fall: the price of raw materials in the raw material market has no market conditions will continue. Since 2007, scarcity factors and the promotion of hot money have led to soaring rosewood raw materials. At the moment, the wait-and-see atmosphere in the mahogany furniture market is extremely strong, making mahogany raw materials worthless, and the buyers and sellers are still stagnant. In addition, under the trend of “innovation†in the industry, the “material scarcity theory†will encounter new materials and gradually be diluted, further affecting the decline in the price of mahogany raw materials.
Reason 2: The withdrawal of the hot money bubble has a direct relationship with the withdrawal of hot money. The industry pointed out. “Wenzhou Corps†was once the main force to promote the rise of domestic mahogany furniture, but since the second half of 2010, Wenzhou investors began to gradually ship **, and investors from around the country have also intensified their divestments. In addition, SMEs that rely mainly on hype will not be able to survive.
Liu Cheng, a doctoral tutor of the School of Economics and Management at the Beijing University of Science and Technology, believes that in the face of changes in the mahogany furniture market, investment risks begin to show up. Some prophetic investors have started to withdraw on a scale, and slow-moving hot money has fallen into a difficult situation.
Reason 3: Market shuffling According to industry experts' prediction: “The redwood industry has begun shuffling in advance. In 2012, the industry will face a major reshuffle, and will continue to shuffle for two to three years, playing a brutal competition in the field of survival of the fittest. "There are more than 13,000 companies in the country, but there are less than 50 well-known brand companies. If we want to take a favorable position in the market, we must create a strong brand.
The reason for the fall of the fake one: raw material prices continue to rise in the country's professional mahogany furniture town of Zhongshan City, Guangdong Province, Dahong Town, Redwood Furniture Association, said Xiao Zhaoxing, raw material prices continue to rise, making mahogany furniture price reduction space is very small. According to the situation of Dayong manufacturers buying raw materials, the prices of various mahogany raw materials have not only decreased, but also increased at a rate of 10% to 20% each year. In addition to this, labor costs have increased rapidly, and workers’ wages have also increased at a rate of more than 10% per year.
Reason 2: Falling price is the "conspiracy" of hot money
Some people believe that as a resource product, mahogany production is declining. Especially when the market price has become more reasonable, if there is another plunge, it will not be in line with the market laws. Moreover, the prices of almost all commodities, including food, vegetables, and commodities, have risen in recent days, except for the price drop in mahogany, which is unreasonable. "Therefore, this is very likely to be a 'conspiracy', and the sky-high price of mahogany in 2007 will not rule out the recurrence."
Reason 3: Falling price is just "diversion"
"I am not in a hurry. This year may rise, and it will rise quite a lot. I estimate it will reach 20,000 or more." Any boss who has been processing logs for many years in Dongxing, Guangxi, told the reporter that the current large companies and businesses are more powerful. Before insisting on biting teeth, the backlog of wood would not generally be sold at a reduced price because the price of mahogany rose again after the downturn in the 2008 financial crisis, and many people are still optimistic about this year's mahogany market. Unlike small businesses, which are eager to sell, some big investors are still preparing to take the risk and take the opportunity to take a dip.
The reason for the real fall: the price of raw materials in the raw material market has no market conditions will continue. Since 2007, scarcity factors and the promotion of hot money have led to soaring rosewood raw materials. At the moment, the wait-and-see atmosphere in the mahogany furniture market is extremely strong, making mahogany raw materials worthless, and the buyers and sellers are still stagnant. In addition, under the trend of “innovation†in the industry, the “material scarcity theory†will encounter new materials and gradually be diluted, further affecting the decline in the price of mahogany raw materials.
Reason 2: The withdrawal of the hot money bubble has a direct relationship with the withdrawal of hot money. The industry pointed out. “Wenzhou Corps†was once the main force to promote the rise of domestic mahogany furniture, but since the second half of 2010, Wenzhou investors began to gradually ship **, and investors from around the country have also intensified their divestments. In addition, SMEs that rely mainly on hype will not be able to survive.
Liu Cheng, a doctoral tutor of the School of Economics and Management at the Beijing University of Science and Technology, believes that in the face of changes in the mahogany furniture market, investment risks begin to show up. Some prophetic investors have started to withdraw on a scale, and slow-moving hot money has fallen into a difficult situation.
Reason 3: Market shuffling According to industry experts' prediction: “The redwood industry has begun shuffling in advance. In 2012, the industry will face a major reshuffle, and will continue to shuffle for two to three years, playing a brutal competition in the field of survival of the fittest. "There are more than 13,000 companies in the country, but there are less than 50 well-known brand companies. If we want to take a favorable position in the market, we must create a strong brand.
The reason for the fall of the fake one: raw material prices continue to rise in the country's professional mahogany furniture town of Zhongshan City, Guangdong Province, Dahong Town, Redwood Furniture Association, said Xiao Zhaoxing, raw material prices continue to rise, making mahogany furniture price reduction space is very small. According to the situation of Dayong manufacturers buying raw materials, the prices of various mahogany raw materials have not only decreased, but also increased at a rate of 10% to 20% each year. In addition to this, labor costs have increased rapidly, and workers’ wages have also increased at a rate of more than 10% per year.
Reason 2: Falling price is the "conspiracy" of hot money
Some people believe that as a resource product, mahogany production is declining. Especially when the market price has become more reasonable, if there is another plunge, it will not be in line with the market laws. Moreover, the prices of almost all commodities, including food, vegetables, and commodities, have risen in recent days, except for the price drop in mahogany, which is unreasonable. "Therefore, this is very likely to be a 'conspiracy', and the sky-high price of mahogany in 2007 will not rule out the recurrence."
Reason 3: Falling price is just "diversion"
"I am not in a hurry. This year may rise, and it will rise quite a lot. I estimate it will reach 20,000 or more." Any boss who has been processing logs for many years in Dongxing, Guangxi, told the reporter that the current large companies and businesses are more powerful. Before insisting on biting teeth, the backlog of wood would not generally be sold at a reduced price because the price of mahogany rose again after the downturn in the 2008 financial crisis, and many people are still optimistic about this year's mahogany market. Unlike small businesses, which are eager to sell, some big investors are still preparing to take the risk and take the opportunity to take a dip.
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