Why is cassava (almond kernel) so popular?

In recent years, amidst the constantly changing domestic and international market landscape, the types of timber used in China's timber market have undergone tremendous changes. Especially after the 17th CITES Convention, with 18 rosewood species being listed in Appendix II, the emergence of some rosewood substitutes has greatly enriched and invigorated the Chinese timber market. Before 2016, Kasla (scientific name: Terminalia catappa) from Papua New Guinea was an obscure species. In the eyes of industry insiders, it was merely a similar species to Burmese Kasla, used for wooden doors and moldings, with relatively small usage. However, who would have thought it would now leap to become one of the most promising timber species in the market, with both volume and price reaching record highs?

1. Understanding Kasla (Alpinia serratifolia)

Kasla

Scientific name: Terminalia chebula

Latin name: Terminalia spp.

It is widely distributed in tropical Africa, the Americas, and Asia, extending to Papua New Guinea and the South Pacific. Currently, the main production areas for the best-selling Kasla in China are Papua New Guinea and the Solomon Islands.

Kasla is a large tree, reaching up to 38m in height and 1.8m in diameter. This genus contains approximately 250 species. It has a glossy appearance. The grain is straight or slightly interlocked; the texture is medium; it is light and soft; it has low strength and low shrinkage. Planing and sawing are somewhat difficult, and the cut surface is slightly rough; it has good sanding, painting, gluing, and nailing properties. The air-dry density is 0.46 g/cm³.

Diffuse-porous wood. Pores are slightly visible to the naked eye, few in number, and slightly large; mainly solitary vessels, with a few radial multiples (2-3 vessels); resinous. Axial parenchyma is clearly visible under a magnifying glass, aliform and vasicentric. Rays are clearly visible under a magnifying glass, slightly dense, and narrow. Sometimes, tangentially arranged resin canals from wounds are visible.

2. Why did Casilla (almond kernel) become so popular?

In recent years, timber-producing countries, primarily in Southeast Asia, have unanimously introduced logging restrictions, leading to a continuous decline in the export volume of mid-to-high-end timber. To fill the timber gap, many domestic timber traders have turned their attention to other timber-producing regions, with timber from Papua New Guinea and the Solomon Islands gaining popularity due to its superior quality and affordable prices.

Kasra is a prime example. According to investigations by reporters from Timber Kingdom, the Papua New Guinea timber market has been very active since 2017, with Kasra, a star species in the market, experiencing particularly strong demand and continuously rising prices.

Market analysts indicate that demand for Casla increased by over 30% in 2017 compared to 2016. While demand slightly declined in the first half of 2018 due to selling pressure from multiple short sellers, the market remained significantly hotter than in the same period of 2016. This active market also led to a rise in Casla prices.

According to data monitored by Timber Kingdom, the price of Cassia generally remained at 3,000-3,200 yuan/cubic meter in the second half of 2016, and gradually climbed from 2017 onwards, even reaching a peak of 3,900-4,000 yuan/cubic meter.

3. Why is cassava (almond kernel) so popular?

Industry analysts believe that Africa's ability to quickly become a market leader is mainly due to:

1. A shortage of Myanmar Kasla has allowed Papua New Guinea Kasla to gain a competitive edge. Opportunity always favors the prepared. According to business operators, in previous years, the main products available in China were Myanmar Kasla and Papua New Guinea Kasla. However, due to the superior overall quality of Myanmar Kasla, it consistently held a dominant position in the domestic market.

However, in the past two years, Myanmar's forest resources have been sharply depleted, and with the continuous increase in timber harvesting costs, low-profit timber species such as Myanmar's Kasla have been abandoned by merchants, resulting in a rapid decline in imports. Under these circumstances, Papua New Guinea's Kasla, which already had a good market foundation, seized the opportunity and captured the vast majority of Myanmar's Kasla market share, rapidly expanding its market space.

2. The exceptionally high cost-performance ratio gives Papua New Guinea's Casla a strong competitive advantage in the market. Market vendors indicate that Casla's current price is in the relatively low-end range of 3,500-4,000 yuan per cubic meter. However, Casla boasts advantages such as resistance to deformation, good stability, excellent wood processing performance, and clear grain. Products made from this material have a higher perceived value than those made from other materials at the same price point.

With its excellent cost-performance ratio, Casila naturally enjoys high market appeal. Especially in the wooden door market, Casila has become another important material used in the market after Sapele.

3. The color of Casla aligns with current popular interior design styles. According to a reporter from Timber Kingdom, Casla's overall color is dark, making it suitable for crafting dark-colored furniture and interior decorations.

In the past two years, dark-colored, minimalist furniture has become increasingly popular among consumers in the domestic furniture market. However, dark-colored woods such as zebrawood and black walnut are generally more expensive, and their supply is unstable, resulting in higher prices for furniture made from them. In this context, the affordable and stable supply of Casla furniture has naturally made it more appealing to the market. Some merchants have stated that furniture and wooden doors made from Casla have a visually appealing, sophisticated, and dignified feel, exuding quality.

4. What is the future of Casilla (Alpinia serratifolia)?

As a wood species with considerable market recognition and usage, the future market trend of Cassia remains promising. Some market analysts point out that after several years of market fluctuations, the furniture industry has entered a more rational development phase. Downstream consumers are no longer blindly pursuing high-end mahogany furniture, but are paying more attention to practical solid wood furniture, and consumption is gradually becoming more rational.

Furthermore, considering the current market situation, although Papua New Guinea has begun to consciously restrict timber exports, the supply of Kakasra remains substantial, giving it a clear competitive advantage. Under these circumstances, Kakasra, with its high cost-performance ratio, is bound to secure a place in the fierce market competition, and its market prospects are expected to continue to improve.