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International Log & Sawnwood Prices

1-15th January 2005


International Log Prices 

Sarawak Log Prices 

FOB                     per Cu.m

Meranti SQ up              US$190-195

small                     US$160-165

super small            US$130-135

Keruing SQ up              US$170-175

small                     US$140-145

super small            US$110-115

Kapur SQ up         US$145-150

Selangan Batu

SQ up                   US$145-150

A member of the Samling Group in Malaysia has been awarded the Certificate for Forest Management and Certificate for Chain of Custody from the Malaysian Timber Certification Council. The forest area of Samling is the first forest area managed by a private company in Malaysia to be awarded the MTCC Certificate for Forest Management. 

The MTCC-certified timber provides an independent assurance that the forest management and harvesting policies and practices satisfy the issues of legality and conform to sustainable forest management principles. This will enable the Group to supply MTCC-certified timber products (like plywood, doors, flooring and housing products) that satisfies the chain-of-custody requirement.

  

Francophone West African Log Prices  

Only one log price change has been seen over the past weeks. Prices for Ayous/Obeche for European destinations are up euro 15 for all grades so LM is now at euro 206, B grade at euro 191 and BC/C at euro 160 per Cu.m FOB.   For Asian destinations Ayous prices remain unchanged at euro190, 175 and 145 per Cu.m FOB.  

Exporters had also expected higher prices  for Azobe and Sapele and a further increase for Iroko, however, in spite of recent better demand from China and other Asian buyers, the dollar based offers for South American lumber seem to have mopped up the European demand and both log and lumber prices remained largely unchanged.   Nevertheless, West African exporters are still confident that prices will advance in the early months of 2005.  

Current, heavy stocks of South American lumber in France, Portugal and Netherlands are contributing to the current low demand for new purchases in W. Africa. As was anticipated W. African exporters soon expect that buyers for China will be back in the market with much stronger demand for the traditional European species including Sapele, Douka, Moabi, Dibetou, Iroko and Sipo.   

As previously reported, China is now moving to purchases of the higher end, more decorative timbers which of course favours W. African producers of these species.  

Analysts say that, at the moment, trade is slow even for Okoume logs and will likely be affected until the end of February by the coming Chinese New Year celebrations. On the plus side, the proposed restrictions on log exports from Papua New Guinea and Solomon Islands and the increasingly successful clamp down on illegal logging in Indonesia will certainly affect the availability of logs for China.  

The decision by the government of Gabon close down the sales activities of the state log selling organization, SNBG is big news. As of the 1st January 2006 exporters will be free to sell directly but the technical department of SNBG will, as now, control log measurement and quality.   

In further moves, after a mid -2005 introductory period  a quota system will be introduced by January 2006, similar to that in Cameroon, to control and restrict  exports of logs needed for sawmilling and other domestic further processing.     

FOB                     LM  B      BC/C

                          Euro per Cu.m

Afromosia/Assamela       381       350  -

Acajou/N'Gollon     206  191  -

Ayous/Obeche              206        190 160

Azobe                   137  122       114

Bibolo/Dibtou        144  107  -

Movingui        190  175       145

Fromager/Ceiba              114       114  -

Iroko                    351  320       241

Limba/Frake         137  114       99

Moabi                   244  221       206

Padouk                 206  206  -

Sapelli                   229  213       190

Sipo/Utile              274  259  -

Tali                144  129       91

Doussie                457  335       274

 

 

Gabon Okoume

Grade            per Cu.m

CI          US$150

CE         US$122

CS          US$95

QS         US$176

 

Okoume for China

40% CI, 40% CE, 20% CS       US$200 (Free alongside)

  

Myanmar  

Teak Logs

Veneer Quality        FOB per Hoppus Ton

              Oct         Nov

2nd Quality       Euro 4069       Euro 4200

              4 tons              4 tons

3rd Quality       Euro 3887       Euro 3905

              10 tons 7 tons

4th Quality       Euro 3286       Euro 3495

              83 tons        48 tons

 

 

Sawing Quality           per Hoppus Ton

Grade 1 Av.       Euro 1915       Euro 2055

              295 tons 148 tons

Grade 2 Av.       Euro 1476       Euro 1555

              366 tons 227 tons

Grade 3 Av.       Euro 775       Euro 785

              475 tons 207 tons

Grade 4 Av.       Euro 935       Euro 985

              477 tons 463 tons

Assorted Av.       Euro 691       nil

              tons 2253       nil

Domestic       Euro 533       Euro 535

              tons 877  2015 tons

  

Papua New Guinea   

saw/veneer grade     

December 2004 Average FOB per Cu.m

Malas                   US$61

Calophyllum          US$81

Taun                     US$72

Terminalia             US$61

Pencil Cedar         US$78

PNG Mersawa              US$82

Red Canarium              US$55

Erima                   US$60

Dillenia                 US$58

Burckella              US$62

Kwila                   US$90

 

Domestic Log Prices  

Brazil 

Logs at mill yard       per Cu.m

Mahogany Ist Grade     No Sales

Ipe                US$80

Jatoba                   US$49

Guaruba         US$35

Mescla(white virola)     US$42

For the first time in Brazil, FSC has reportedly certified a multiple-use forest area. The Extractive Reserve São Luiz do Remanso, in the State of Acre, in northern Brazil, is managed by a local association of rubber latex extractors and who also harvest products such as timber, tree bark, oils and seeds (used for local handicraft).

The success in certification was the  result of  work done by the Amazonia Consortium, a group of NGO's comprising WWF-Brasil, FSC Brasil, Amazon Workers Center (CTA) and other organizations, with the support of USAID.  

According to the Amazonia Consortium coordinator, the association of rubber latex extractors is part of the Group of Communal Forest Producers (GPFC), which comprises other 13 associations.

The certification will apparently benefit around 47 families and could, say analysts, stimulate the management of new areas.  

Indonesia 

Indonesia's timber industry is to get a boost as the government plans to increase the logging quota this year, to better match capacity and help stabilise employment opportunities.  

The Indonesian press is saying the  Minister of Forestry has said his ministry would propose a revision of the annual logging quota from 5.5 million cubic metres to somewhere between 20 and 30 million cubic metres.  

At present, the industry has an annual installed capacity of about 42 million cubic metres. The great discrepancy between capacity and log availability has been cited as a key contributor to widespread illegal logging across the country.  

The logging quota increase is expected to result in an increase in the industry's contribution to the state revenues of about US$9 billion from an estimated $7.8 billion in 2004.  

Domestic log prices     per Cu.m

Plywood logs 

 Face Logs           US$90-100

Core logs              US$60-75

Sawlogs(Meranti)       US$105-115

Falkata logs           US$90-95

Rubberwood         US$85-95

Pine               US$95-100

Mahoni                 US$500-515

  

Peninsula Malaysia  

Logs

Domestic (SQ ex-log yard)  per Cu.m

DR Meranti          US$210-220

Balau                    US$175-180

Merbau                 US$215-225

Rubberwood        US$85-90

Keruing         US$175-185

  

Ghana  

per Cu.m

Wawa                  US$36-44

Odum                   US$77-175

Ceiba                    US$31-53

Chenchen             US$33-88

Mahogany

(Veneer Qual.)              US$40-91

Sapele                  US$55-154

Makore

(Veneer Qual.)              US$54-154

  

International Sawnwood  

Francophone West Africa 

No price changes were reported at year end.   Currently the trade is slow and unlikely to improve until mid-January at the earliest. As for log prices, the expected price improvements for selected species did not materialise but exporters are confident of demand and price increases early in 2005.

FOB                            per Cu.m

Okoume                Euro

FAS GMS                    275

Standard and Better            260

FAS Fixed Sizes              290

Sipo

FAS Standard Sizes              488

FAS Fixed Sizes              519

Sapelli                  

FAS scantlings                     487

Dibtou                        

FAS Standard Sizes              381

FAS Fixed Sizes              412

Iroko

FAS GMS                    458

Scantlings                    519

Strips                           304

Khaya

FAS GMS                    366

  

Brazil  

Tropical sawnwood exports in the first eleven months of 2004 reached US$ 486.3 million up almost 39% over the same period last year.

From January to November 2004, pine sawnwood exports totalled US$ 269.2 million, up 17.3%over the same period last year.

FOB Belem/Paranagua Ports

Export Sawnwood           per Cu.m

Mahogany KD FAS FOB

UK market                  no trade

Jatoba Green (dressed)              US$520

Cambara KD               US$400

Asian Market(green)

       Guaruba         US$240

       Angelim pedra             US$270

        Mandioqueira           US$190

Pine (AD)                    US$130

  

Malaysia  

Sawn Timber

Export(FOB)                per Cu.m

White Meranti A & Up   US$325-330

Seraya

Scantlings (75x125 KD)  US$645-655

Sepetir Boards                  US$185-195

K.Sesendok 25,50mm           US$350-360

  

Ghana

The Ghana Land and Forestry Policy Support Facility (GLFPSF) has initiated action to reduce wood waste in the country. This, it intends to do through the strengthening of links with wood base industries.

This was made known at a workshop organised to sensitise industry on how to reduce wood waste in the timber industry. The workshop, was among other things, to broaden the minds of the participants on how to diversify the wood industry, create and strengthen linkages to reduce wood waste. The plan is to broaden the economic base of the wood industry and stimulate and encourage the initiation of policies and programmes that would sustain the wood industry in the country.

FOB              Euro per Cu.m

Afromosia             855

Asanfina        480

Ceiba                    180

Dahoma         310

Edinam                 370

Khaya                  520

Makore                 450

Odum                   610

Sapele                  480

Wawa       1C&sel          245

Peru  

For US Market                     per Cu.m

Mahogany  1C&B, KD 16%

Central American market    US$1220-1250

Mahogany  1C&B, KD 16%

US market                 US$1300-1380

Spanish Cedar No.1 C&B,

KD 16%,

Central Am. Market           US$615-630

Walnut 1" Thickness,

 6' - 11' length                      US$660-700

Spanish cedar # 1 C&B,

KD 16%

Mexican market                    US$630-650

Pumaquiro 25-50mm AD per Cu.m

Mexican market              US$460-490

Virola  1" to 2"

Length  6' - 8' KD       US$270-290

Lagarto  2" Thickness,

6' - 8' length          US$345-365

Ishpingo  2"

Thickness 6' - 8' length       US$365-385

 

Domestic Sawnwood Prices  

Brazil 

In December, domestic wood prices in Real were quite stable, reflecting only minor inflation adjustments. Prices in US Dollar reflect an average exchange rate variation of around 2.2%. The highest price variation both in Real (2.4%) and in US Dollar (4.7%) was registered for particleboard. At month end demand for particleboard and MDF was up slightly due to go demand from the furniture industry in Brazil.  

Sawnwood (Green ex-mill)

Northern Mills              per Cu.m

Mahogany             No sales

Ipe                US$340

Jatoba                   US$247

Southern Mills

Eucalyptus AD              US$118

Pine (KD) First Grade       US$152

  

Indonesia  

Sawn timber, ex-mill

Domestic construction material

Kampar                per Cu.m

AD 3x12-15x400cm       US$200-210

KD                US$280-290

AD 3x20x400cm       US$305-315

KD                US$320-330

Keruing

AD 3x12-15cmx400       US$225-230

AD 2x20cmx400       US$220-225

AD 3x30cmx400       US$230-235

 

Malaysia 

Sawnwood            per Cu.m

Balau

(25&50mm,100mm+)       US$235-245

Kempas50mm by

 (75,100&125mm)       US$185-195

Rubberwood

25x75x660mm up       US$235-240

50-75mm Sq.         US$245-250

>75mm sq.            US$255-265

  

Ghana  

Sawnwood                   per Cu.m

Wawa 25x300x4.2m         US$73

Emeri       25x300x4.2m           US$70

Ceiba 25x300x4.2m         US$53

Dahoma 50x150x4.2m         US$138

Redwood 50x75x4.2m          US$122

Ofram    25x225x4.2m         US$136


Peru

                                       per Cu.m

Mahogany             US$1512-1522

Virola                   US$186-200

Spanish Cedar              US$630-640

Catahua         US$177-183

Tornillo          US$357-365

 


Abbreviations

LM       Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS        Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR           French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF        Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot              Price has moved up or down

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Source: ITTO

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