Broad-leaved Dalbergia, Dalbergia sinensis, ranks first in the rise and fall

Redwood Market Update: The redwood market remains highly volatile, with fluctuations in demand creating a mixed picture. Among the species, the broad-leaved Dalbergia (commonly known as "South American Red Rosewood") has shown the most significant price swings this week.

This week, the mahogany classification index experienced a “lower middle and low head” trend. Despite a brief surge in the dimpled Dalbergia due to policy changes, the overall market sentiment remained weak. The rosewood index ended the week with a negative performance, closing at 127.52 points, down 2.58 points or 1.98% from the previous week. Analysts point to several factors behind the decline, with key players like Dalbergia chinensis (Siamese rosewood) and broad-leaved Dalbergia (Indonesian black rosewood) playing a major role in the downturn. Their falling prices have dampened investor enthusiasm and contributed to the overall pessimism.

According to the Yuzhu·China Timber Price Index, both Dalbergia sinensis and broad-leaved Dalbergia saw limited trading activity this week. The broad-leaved Dalbergia showed fluctuating volume and prices, with the weekly index dropping to 198.22 points, a monthly decrease of 1.87%. Transaction volume fell by 44.74% compared to the previous week, marking a sharp decline. Meanwhile, Sian rosewood was priced at 81,000 yuan/ton, but no official market price was reported. However, the inclusion of dimpled Dalbergia in the endangered species list has led to increased interest in the South American Red Rosewood, especially from Mexico. This week, the market price for dimpled Dalbergia rose, with the weekly index reaching 125.07 points, up 2.37% from the previous week. The closing price stood at 20,500 yuan/ton, and transaction volume increased by 12.5% compared to the prior week.

Additional factors contributing to the supply shortage include labor strikes at Hong Kong ports, which have caused delays in customs clearance and restricted the flow of dimpled Dalbergia into the domestic market. As a result, the domestic supply of this timber has become more limited, further supporting the recent price increase.

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