Due to the strike of imports and the monopoly of traders .. the price of wood rose by 60% and the furniture market stagnated

Due to the strike of imports and the monopoly of traders .. the price of wood rose by 60% and the furniture market stagnated

A number of timber traders warned that the continuation of the repercussions of the Russo-Ukrainian war would lead to an increase in the prices of timber and furniture products in the local market, and they stressed that the production of raw materials of the plywood class recorded unprecedented levels in terms of price increases, especially that Russia is one of the largest supplier countries.For Egypt of that quality of wood.

The Chamber of Wood Products and Furniture in the Federation of Industries has revealed that the prices of wood ore are experiencing a significant increase due to the lack of supply and the increase in demand for it.

The Furniture Chamber indicated in a statement that there are efforts to contract forests in Africa that supply raw materials at cheap prices, and link it to the establishment of warehouses, which help control raw materials and availability.

She stressed the need for an alternative to wood surfaces, through products made from rice straw or palm leaf, along with those made from bagasse, which is seen as an alternative to cope with the high prices of raw materials and the lack of supply.

record levels

It is noteworthy that Egypt annually imports more than $ 1.5 billion worth of wood, of which $ 1.4 billion is softwood, and $ 155 million is hard beech, while the value of oak is about $ 10 million.

Economic reports have revealed that timber prices worldwide have risen to significant levels a few months ago, due to the lack of supply abroad and the increase in demand.

According to Bloomberg, timber prices have risen by more than 60% in about a month to reach record levels this year as the entire timber supply chain collapsed under the weight of rising demand from people renovating their homes and buying larger homes.

The agency confirmed that the high rises had forced wood companies to cancel projects and try to look for alternatives, noting that timber importers and exhibition owners are looking forward to calming prices abroad so that prices return to their normal levels.

great recession

Mohsen Al-Tagouri, deputy head of the import department at the Cairo Chamber of Commerce, said that “timber prices in the local market have risen by between 10-20% in the last period, for several reasons, the first of which is the rise in prices in the abroad, then the Russo-Ukrainian war prices increased the first increase several times. “

Al-Tajouri confirmed in press releases that importers have reduced the volume of imported contracts during the last period, due to the impact of the Corona crisis on markets and the rise in prices.

He pointed out that Egypt imports timber from Romania, Indonesia, France, Russia, the Netherlands and Yugoslavia, and explained that the bedroom, which used to cost £ 60,000, is now being sold at £ 100,000 after the recent price increase.

Al-Tagouri added that the rise in prices caused a major recession in the Egyptian furniture market, leading to the accumulation of goods among the owners of furniture exchanges.

price jumps

Sherif Al-Baqari, a member of the Chamber of Wood Industry in the Federation of Industries, said that “plywood prices saw unprecedented price jumps after the outbreak of the Russo-Ukrainian war, from levels of 125 pounds per board to 160 pounds per board. . ”

Al-Baqari explained in press releases that plywood is a basic production input in the manufacture of furniture products from bedrooms, dining rooms and any of the wood surfaces.

He added that the prices of plywood had been steadily increasing before the outbreak of the Russo-Ukrainian war due to large importers carrying out monopoly operations, storage and price speculation on it, as its price was up to 60 pounds before those operations.

monopoly of merchants

Tariq Al-Nahhas, owner of a furniture factory in Damietta, said: “The rise in plywood prices took place before the outbreak of the Ukrainian-Russian war, and importers justified the rise in its price by the outbreak of this war and before that is the emerging Corona virus pandemic. “

Al-Nahhas added in press releases that the stores are full of plywood, but major importers are turning it off from the market as prices continue to rise, emphasizing that import operations have now ceased from Russia, and none of them have imported new plywood, etc. . what is the basis of the price increase?

He pointed out that the continued rise in plywood prices would lead to a stagnation in the sale of furniture products, especially as this was accompanied by a 30% rise in prices due to the increase in production materials such as paints and fabrics sourced from abroad. is imported. .

furniture makers

Ashraf Helmy, head of the Chamber of Wood and Furniture Products industry in the Federation of Industries, said that “the rise in prices of goods and products, which has hit the market in recent days, is threatening furniture makers in Egypt, which is tens of thousands Egyptian workers, noting that the rise in prices has negatively impacted the sales movement and, most recently, a state of stagnation. “

Helmy added in press releases that the prices of all types of wood have risen with an increase ranging from 50% for the lowest quality species to 200% for some types of wood, pointing out that the American oak types have a price per square meter . from 12,000 pounds, which rose to 28,000, an increase of 150. And mahogany, which is imported from Mexico and South America, its price was 9 thousand and reached 21 thousand pounds And the rise in the price of the customs dollars.

He explained that timber prices had risen by 70% compared to 2020, pointing out that the rise in prices is not only limited to timber but also includes other inputs such as iron, paint, sponges and glue.

Helmy pointed out that furniture prices will rise in different proportions depending on their dependence on the raw material used, due to the rise in all industry inputs, and explains that the furniture industry is no longer just wood as there is furniture which is entirely of sponge, for example.

Leave a Comment