Green sandalwood market status and subsequent trend forecast

In recent times, reporters have been going to the floor market and learned that a real wood floor, called Palo Sant, has increased dramatically this year when floor prices are generally falling. Moreover, even if prices rise rapidly, the market is still in short supply. This Palo Sant is exactly what kind of wood, why can have such beautiful market in the off season. To find out, the timber kingdom reporter visited the relevant businesses.

The species of green sandalwood on our wood market

What is green sandalwood? On the Internet and in the industry, some people call it the callus wood, others call it the paraffin wood. The main expressions are:

1.Bulnesia spp.

A Chinese name: 萨米维腊木; English name:  Santo，LignumVitae; Latin name Bulnesia sarmientoi; Alias (commonly known as) : jade sandalwood, green sandalwood, green sandalwood, deodorant green sandalwood. Origin: the great chaco grassland between Brazil, Paraguay and Argentina in southern South America. Air dry density: greater than 1g/cm cubed.

B. Chinese name: 乔木维腊木; English name: Verawood, Veraaceituna, Vera pocktree; Latin name Bulnesia arborea; Alias (commonly known as) : green sandalwood, green sandalwood. Origin: mainly in venezuela and Colombia and Guyana in northern South America. Air dry density: 1.14-1.25g/cm cubed.

2. Guaiacum spp;

A Chinese name: 药用愈疮木; English name: Lignum Vitae, Palo santo, Guayacan; Latin name: Guaiacum officinale; Alias (commonly known as) : sandalwood, balak sandalwood, sandalwood. Origin: mainly in North America, Central America and Latin America. Air dry density: 1.05-1.28g/cm cubed.

B Chinese name: 神圣愈疮木; English name: Lignum vitae, Ironwood; Latin name: Guaiacum sanctum; Alias (commonly known as) : sandalwood, balak sandalwood, sandalwood. Origin: mainly in North America, Central America and Latin America; Air dry density: 1.05-1.28g/m cubed.

According to experts in the industry, both paraffin and callus are one of the hard heavy materials, and they belong to the genus Zygophyllaceaeof tribulus terrestris. The two kinds of wood are very similar in appearance and nature, which are extremely difficult to distinguish, but their differences can be observed under microscope.

In the timber industry, it is generally believed that there are genuine and fake green sandalwood in the market. Bulnesia sarmientoi, mainly from Argentina and Paraguay, is a true sandalwood, also known as "sandalwood". Bulnaaresiborea, which is mainly from Colombia and Guyana, is fake green sandalwood.

The history and application of green sandalwood in China

Green sandalwood enters our country market to should be in the late 90's, its strong fragrance and hard heavy material according to normal speaking should already be famous in furniture market. But until now the main market of green sandalwood is still in handicraft market, in furniture and other fields have not been able to make a difference.

According to the manufacturer introduction, green sandalwood in the introduction of the beginning of the domestic actually caused a lot of business concern, before and after 2005 some east Yang manufacturer tried to make it into furniture. However, because its material color and Chinese traditional consumption habits do not coincide with each other, the deficiency of "unserviceable" leads to its failure to form climate in the furniture market. In recent years, green sandalwood began to be used in the floor market, due to the lack of popularity, the market demand is actually very limited. However, in the case of more limited supply, it caused the high price of green sandalwood floor and the situation of pulling up all the way.

In addition, for the aroma of green wingceltis, markets have the poles, some people really like green wingceltis full-bodied fragrance, but there are some wood friends think more than the scent of green wingceltis "rich" and "stable" is insufficient, not the "great hall".

Green sandalwood prices continue to climb the main reasons

According to the manager liu of sheng mei mu ye introduction, the jade sandalwood floor that the market now says is real wood floor of real sandalwood, it is the green sandalwood floor that we often hear actually. At the present stage, the price of real wooden floor 910*95*18mm is around 1200 yuan/m2, and the price of 910*125*18mm is around 1600 yuan/m2. The price has increased by 200-400 yuan per square meter compared with the same period last year. 

According to manager tang, who owns the wood industry of Greatwood holdings, a large trading house of green sandalwood, the price of Argentine green sandalwood is generally around 13,500 yuan to 15,000 yuan/ton at present, which is 20% to 30% higher than that at the beginning of the year.

Green sandalwood prices continue to rise, Greatwood  holdings manager tang explained:

One is not widely distributed Palo Sant of material production and the total cutting quantity is limited, and because the production materials have been on Palo Sant of export control policies, so the quantity of Palo Sant into the domestic market has been modest. In recent years, after the main country Argentina banned the export of Palo Sant, the market supply has been in short supply for a long time. Although the export of Argentine Palo Sant has been restored after it was changed to endangered certificate, it is still far from meeting the demand of the market.

Second, it is difficult and expensive to handle the endangered certificate. Bulnesiaarborea, currently produced in Colombia and Guyana, does not require an endangered species certificate for export, while Argentine Palo Sant requires an endangered species certificate. Because Argentina for Palo Sant this material is relatively strict logging system, which marketers get the certificate of endangered time relatively long, more costs and a higher difficulty, which greatly limits the domestic imports.

Third, for commercial purposes. At present, the shortage of Palo Sant in China is more serious, especially in the floor market, even the situation of looting. Under the seller's market dominance, the price of Palo Sant naturally rises continuously, and the higher the price rises, the greater the profit that the merchant obtains.

In this case, the merchant intends to control the import volume and lengthen the supply time. In fact, many big businesses have thousands of tons of goods on hand abroad, but they are reluctant to supply too much at once. It is estimated that from the beginning of the year to the present, the import volume of Palo Sant does not exceed 30 containers, including zhangjiagang and guangdong.

Green sandalwood future market trend

Green sandalwood prices are still in the upward path, and are expected to grow by up to 50 percent early next year, according to manager tang of Greatwood holdings.

For the future market trend of green sandalwood, many people in the industry support manager tang's view. Especially the convention on international trade in endangered species, the 17th party congress (CITES the COP 17) convened, may make the export of Palo Sant of deforestation and control more strictly, Palo Sant of domestic market is expected to the phenomenon of out of stock will not effectively solved, seller's market will exist for a long time. At present the businessman is paying close attention to the latest trend of Palo Sant.

But with the industry, said although Palo Sant of hot market, the price also is in continue to rise, but Palo Sant, after all, is a niche product to the market for wood form strong and bigger role in promoting. And, the price continues to rise, it is not a good thing for Palo Sant, when its price far exceeds its value, consumers will inevitably choose other substitutes.

Therefore, how to make Palo Sant to maintain its demand and earn a better profit from this wave of market, it is worth the timber merchant to think.

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