|Home: Global Wood||Industry News & Markets|
& Sawnwood Prices
1. CENTRAL/ WEST AFRICA
Timber market remains steady
The news that a number of factors are causing supply problems for Malaysian logging and processing companies is likely to increase demand for West and Central African timber products. India and China are forecasting high growth rates in their domestic demand for wood and timber products and currently African producers have the potential to increase supplies, says an analyst.
Producers seek relaxation of log export ban in Gabon
If there is to be any relaxation of the log export ban, exports are likely to be undertaken through the Gabon State Timber Export Inspection Agency (SNBG).
Uncertainty clouds some European economies and sawnwood markets
According to an analyst, the recent fiscal crisis in Ireland may well inhibit demand for iroko sawnwood which is preferred by Irish importers.
The economies of Spain and Portugal are also under pressure and there is no foreseen improvement in the construction and other timber using industries in the short to medium term. Although these countries are mainly importing round logs, the situation in these countries has a significant bearing on the overall European timber market and trade.
Invitation for harvesting of plantation timber
Plantation timber given budget support
In addition to the government s¡¯ budget support for forest plantations, some of the other planned measures for the coming year include:
• Computerisation of the various divisions of the Ghana Lands Commission and
development of an integrated Land Information System;
Booming property development in Malaysia
According to statistics provided by the National Property Information Centre (Napic), the average price of a residential property in Malaysia has risen by 16% during the first half of this year to RM212,815 (US$68,600). Residential properties in Malaysia are the most expensive in Southeast Asia after Singapore.
Property development is a lucrative business especially for those with a good reputation and status. Property developers are allowed to collect payments and deposits from potential buyers, when projects are launched.
Preparations underway for Malaysian International Furniture Fair
Indonesia eyes Middle-East for her furniture
The building sector in the Middle-East and particularly in Qatar is booming with the completion of several residential, hospitality and commercial construction projects. The Indonesian Trade Ministry also hopes that the exhibition will help tap these markets and promote trade between Qatar and Indonesia whose growth has slowed to 4.76% during the period from January to May 2010.
Plywood exports on a downward trend
According to statistics released by the Forestry Industry Revitalization Agency (BRIK), the volume of plywood exports from January to October this year amounted only to 1.9 million cu.m, down 11% from 2.1 million cu.m registered in the same period in 2009. However, in value terms exports increased by 2.2% to US$866 million compared to US$847 million for the same period in 2009.
The decline in exports is attributed to the strengthening of the Indonesian Rupiah against the US dollar, which has the effect of making Indonesian products more expensive and less competitive in the international markets. The appreciation of the Indonesian Rupiah has also eroded the profit margins of plywood producers. In November last year, the average exchange rate was Rp.9,500 / USD while the current exchange rate stands at Rp.8,900 / USD.
Demand eases as holiday season approaches
Demand for teak and pyinkado, as reported earlier, is still subject to grade and size. Larger logs are traded more than smaller grades. Prices are reported to be somewhat subdued. The general elections held in November turned some interest away from timber trade in the country.
Industrial growth eases due to tight
The monsoon season was favourable to the agricultural sector and thus the prospects are good for the overall economy. However, due to the tightened monetary policy and the sluggish market situation in Western countries, the expected GDP growth for the fiscal 2010-11 has been revised from the target level of 10% to 9%.
Exports from the beginning of the fiscal year to date were up 21.6% compared to the same period last year.
India promotes renewable energy
The total renewable power capacity is envisaged to be increased by an additional 15,000 MW during the next 5 years. For solar power, the total capacity target is set at 20,000 MW by 2020. In addition, India is also promoting the development of fuel wood plantations, bio-gas plants, bio-diesel and ethanol.
Government depots begin timber auction sales
Auction sales at various depots of Western India were also announced with indicative sales of 3,766 cu.m of teak logs and 1,217 of other hardwood logs.
Continuing flow of lower grades teak to India
Stiff competition for plywood logs
Significant decline in Brazil¡¯s tropical
However, exports of tropical sawnwood declined in terms of both volume and value, from 51,600 cu.m worth US$26.2 million in October 2009 to 45,100 cu.m valued at US$21.6 million in October 2010, representing 12.6% decline in volume and 17.6% in value.
Exports of tropical plywood have also continued to slip, plunging 39% from 11,300 cu.m in October 2009 to 6,900 cu.m in October 2010. In value terms, the drop was 40%, from US$6.5 million to US$3.9 million.
In contrast, pine sawnwood exports jumped 28% in October 2010 compared to October 2009, from US$10.1 million to US$12.9 million. In terms of volume, exports rose 4.8% from 54,400 cu.m to 57,000 cu.m over the period.
The value of pine plywood exports gained 17% in October 2010 compared to the level in October 2009, from US$24.4 million to US$28.6 million. However, export volumes decreased 1.9% during the period, from 82,400 cu.m to 80,800 cu.m.
For wooden furniture, the value of exports declined 6.7% compared to the level in October 2009 to US$48.6 million in October 2010.
Timber is top export product from Alta Floresta
Exports from Alta Floresta represent 24% of the total tropical sawnwood exports of US$40 million from the Mato Grosso State in the period from January to September 2010. The national total tropical sawnwood exports in the period were US$191 million.
Timber product prices remain unchanged
Financial indicators remain broadly favourable
In October 2010, the average exchange rate to the US dollar was BRL1.68/US$ compared to BRL 1.74/US$ during the same month of 2009, showing further strengthening of the Brazilian Real against the US dollar over the period.
The Copom (Economic Policy Committee) kept the prime interest rate (Selic) at 10.75% per year in Ocotober. This is the third month in a row that the prime interest rate is kept unchanged.
Electronic tags for timber tracking
This monitoring system is expected to assist the work of timber industries, organisations responsible for sustainable forest management and governmental authorities.
Monitoring deforestation in Southern Par¨¢
São Felix do Xingu was the region most affected by forest fires this year. At the peak of the dry season in August, 19,727 hectares of forests were on fire in the São Felix municipality, accounting for 31% of the total of 64,443 hectares of forest affected by fires in Par¨¢. During the Operation Hefestos to combat forest fires, IBAMA has imposed a total of BRL66 million fines on those causing deliberate forest fires.
IBAMA monitors and detects deforestation areas through the satellite images of the System of Deforestation Detection in Real Time (DETER), a programme of the National Institute for Space Research (INPE).
LIGNA timber trade fair
The furniture sector was the hardest hit by the recession. According to statistics, furniture sales fell 11% in 2009. As a result of decreased exports and domestic sales, furniture prices plunged approximately 25%.
With a view to returning to growth and tapping recovering international markets, Brazilian woodwork manufacturers participated in one of the major timber trade fairs, the LIGNA Hannover, held in the last week of November in Curitiba Brazil. The fair gave an opportunity to introduce new technologies and sustainable solutions for the markets.
New forest law faces resistance from indigenous
Consultations were held with the Confederation of Amazonian Nationalities of Peru (CONAP) and the National Organization of the Amazon Indigenous people of Peru (AIDESEP).
According to the Agriculture Committee of Congress, the indigenous groups are unclear of article No. 62 of the draft Forestry and Wildlife law. The article states that the concession area shall not exceed 40,000 hectares and a person could not have more than one concession.
Forest concessionaires face difficulties in securing financing
Forestry operations in tropical forests in the country are very expensive and investments in machinery, forestry equipment, infrastructure and logistics are desperately needed. To improve the financial situation, the Ministry of Forestry and Wildlife is identifying factors affecting forest concessionaires¡¯ access to financing. ¡°The forest sector is very dynamic and there is increasing interest in Peruvian timber products from the informal, domestic and international markets¡±, noted Jorge Ugaz Gomez.
Peru aims at zero-illegal logging in Amazon by 2021
OSINFOR proposes annual reforestation of 100,000 hectares
OSINFOR notes that the country still has the potential of reforesting 10 million hectares of land, and it is calling for a national commitment to promote reforestation and create forest growth in different regions of the country.
Mixed timber price trends
For sawnwood, undressed greenheart prices were favourable for the prime, select and sound qualities. Undressed purpleheart prices slipped while mora prices continued to hold. Dressed greenheart top-end prices rose from US$890 per cu.m to US$1,450 per cu.m, but the exported volumes were small. Prices for dressed purpleheart remained steady in the period under review.
This fortnight period saw exports of Lesser Used Species to the European market at good average prices. Guyana¡¯s washiba (ipe) continues to be in demand in the US market attracting an average price of US$1,750 per cu.m.
Roundwood, fuelwood and splitwood made notable contributions to total export earnings with the main destinations being the Caribbean, Europe and North America. Average prices for splitwood reached a high of US$969 per cu.m.
For the period under review, exports of value-added products were significant. The major exported products were doors, indoor furniture, windows, mouldings and spindels. Species used in the manufacturing of these products included greenheart, purpleheart, crabwood and kabukalli. The Caribbean was the major market for Guyana¡¯s value-added products.
First kiln drying facility commissioned in Guyana
The Minister of Agriculture, who opened the complex, noted that this kiln drying facility is the first of three facilities to be established nation wide. The facility also puts more focus on processing in Guyana and promoting exports of value-added products. This is expected to create more jobs and opportunities for loggers and concession holders.
Tropical Timber Market Report
CopyRight(C) Global Wood Trade Network. All