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Myanmar Furniture Fair nets strong orders and
sales
The Myanmar Furniture Fair was held on 21-25
October, featuring 47 companies exhibiting wood,
rattan and bamboo products in 162 booths. Wood
working machines were also on display. Unconfirmed
reports indicated that the total value of orders
received during the fair ranged from $1.75 million
to $3.5 million.
|
Furniture and Parts Prices |
|
Malaysia, Rubberwood,
FOB |
US$ per piece |
|
Semi-finished dining
table |
|
|
solid laminated top
2.5'x4', extension leaf |
41-51 |
|
As above, Oak Veneer |
50-60 |
|
Windsor Chair |
29-33 |
|
Colonial Chair |
29-32 |
|
Queen Anne Chair
(soft seat) |
|
|
without arm |
32-41 |
|
with arm |
41-44 |
|
Chair Seat
27x430x500mm |
12-14 |
|
Rubberwood Tabletop |
US$ per m3 |
|
22x760x1220mm sanded
& edge profiled |
|
|
Top Grade |
589-602 |
|
Standard |
550-575 |
|
|
|
China overtakes Italy as largest furniture exporter
The latest statistics from UN Comtrade confirm that
China (including Hong Kong and Macao S.A.R.s )
became the world's largest exporter of wooden
furniture in 2005, overtaking Italy from its long
held position (see chart). China has maintained an
impressive upward trend in furniture production
driven by strong growth in both furniture exports
and domestic consumption. From 1995 to 2005, the
total value of wooden furniture exports rose
seven-fold from $932 million to $7.15 billion, and
wooden furniture exports accounted for only about
one-quarter of China's total furniture output in
2005. China's furniture was exported mainly to the
USA (around 50% of all exports), the EU and Japan,
with substantial re-exports reported by Hong Kong as
a transit through its S.A.R. China also replaced
Canada as the leading supplier of furniture to the
USA in 2001.
Exports of wooden
furniture ($ billion)
Italy's furniture exports were relatively stable at
around $5 billion between 1995 and 2002. Italian
SPWP exports were affected by recurring unfavourable
euro/dollar exchange rates during this period and
strong competition from China, Poland and elsewhere
which led to widespread decreases in market share.
Despite these market share declines, Italy's exports
surged in 2003-2004 but again retreated in 2005 when
it was overtaken by China. Upholstered furniture and
chairs constituted the main type of wooden furniture
exported by Italy.
China's booming furniture exports drove those of
secondary processed wood products (SPWP) to over
$11.4 billion in 2005, consolidating China's
position as the world's largest exporter of SPWP.
China displaced Italy from the top position in 2003.
Chinese furniture and
flooring flood UNECE countries
There has been phenomenal growth in the level of
furniture exports from China and Southeast Asia into
the five major importing countries, US, France,
Germany, UK and Japan. The world furniture trade has
opened up faster and more profoundly than
anticipated and the impact on manufacturers in the
USA in particular, has been severe. Chinese labour
costs are low, their large-scale enterprises are
highly efficient and final quality is also high.
China accounts for 43% of US wood furniture imports
and 33% of Europe's. China may now be the world's
number one furniture exporter, unseating Italy from
its long-held position. Similar impacts are being
witnessed in the flooring sector. Wood has increased
its share of the flooring market in Europe, but
faces stiff competition from non-wood products as
well as imported flooring. In terms of parquet
flooring, for instance, China has increased its
market share from about 10% in 2000 to over 35% in
2005. In response to these pressures, a marketing
campaign to promote "real wood" flooring is being
launched to raise consumer awareness and to
encourage demand, in competition against other
flooring materials. |
|
Report from North America |
|
US house starts show partial recovery in September |
|
Privately-owned housing starts rose 5.9% in
September to a seasonally adjusted annual rate of
1.77 million units, according to the US Commerce
Department. However, this was 17.9% below the pace
of a year ago. The surge was due to a 4.3% gain in
the single-family sector, which accounted for about
80% of the houses built. Favorable weather in the
US South and Midwest was believed to be
the reason for the rebound in construction. Other
than that, analysts think that the correction in the
housing sector would continue through 2007. The
chart below shows that privately-owned housing
starts have plunged 22% since January this year.
Meanwhile, building permits dropped (down 6.3% from
August) while housing completions recovered (up
11.1%) in September. |
|
US housing starts (seasonally adjusted, 000 units) |
|
 |
|
House prices fall for second consecutive month
Prices for newly built homes suffered the largest
drop in September year-on-year since 1970,
highlighting the downturn of the US housing sector.
The median price of a new home fell to $217,100 in
September, down 9.7% from the same month a year
earlier while average house prices fell 2.1%, the
second consecutive monthly decline.
|
|
Canadian furniture market chalks steady growth
Canada's economy is performing slightly better than
the USA's. It grew at a rate of 2.9% last year and
was expected to growth at that pace this year and to
slow down moderately in 2007. The growth of the
Canadian residential housing market decelerated in
2005 to a still healthy 3.2% (on a value basis),
down from 7.8% the year before. The market is
saturated now and demand is waning. Aktrin predicts
a growth rate of 3.6% in 2006. If mortgage rates
continue to climb, it might even fall below 2% in
2007. This represents a drop from 225,000 units in
2006 to less than 200,000 units next year.
Canadian consumer spending is an important force
contributing to the economy's overall growth. It
rose at a rate of 3.9% in 2005 and is expected to
rise 4.1% this year. Due to the slowing economy and
rising interest rates, Aktrin anticipates growth to
slow to about 3% in 2007.
Expenditures for durable consumer goods (which
include furniture and other wooden household
products) were more buoyant than overall
consumption. Growth rose from 2.5% in 2004 to a
healthy 5.8% in 2005, compared with 3.9% for overall
consumption. This year's rate is expected to be
similar. However, if consumer confidence declines
and interest rates continue to climb, durable
consumer good sales could advance by only 3.5% next
year. |
|
Canadian furniture market
(C$ billion at retail prices) |
|
 |
|
The Canadian furniture market (at retail prices) has
been plowing ahead without interruption since the
third quarter of 2002. The market grew 6.2% to
C$10.2 billion (at retail prices) in 2005. Aktrin
estimates that growth would continue at a similar
pace this year and would slowdown to a still
respectable 4.4% in 2007. This would value the
market at C$10.8 billion in 2006 and C$11.3 billion
in 2007. |
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