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International Log
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International Log Prices
FRANCOPHONE
WEST AFRICA Iroko
prices decline Prices
were unchanged through September with the only exception of iroko, with LM
and B grades falling by just over euro 15 per m3, while BC/C
grade remained unchanged. The fall in iroko prices was due to low demand
from Europe which held all other prices stable in spite of continued very
good demand from China.
China
market active, EU market dormant Exporters
had expected to see some price improvement through September but the low
demand from Europe meant there was no competition to induce Asian buyers to
respond to any price increase. Some Gabonese traders report that previously
popular izombe logs are not being sold anymore to European buyers while very
limited volume of izombe sawnwood are traded due to high stock levels in
Europe. Buying from China is strong for a variety of species, including
eyong, fromager/ceiba, padouk and olon/bongo. There is new interest in some
lesser‑used species such as faro, niove and onzabilli. Gabon¡¯s
official okoume sales could end Gabonese
producers are waiting to see whether the release of government sales of
okume will be implemented on 1st January 2006 as proposed. Some producers
fear that if this does take place, prices would fall as larger international
logging companies compete for market share and squeeze out smaller
operators. This could
accelerate the existing trend of the number of concession holders is falling
and some think that, in the few years, West African log production will be
dominated by few large operators.
MYANMAR
Hoppus
ton = 1.8 m3; All grades, except SG-3, assorted and domestic, are
length 8¡¯ x girth 5¡¯ and up. SG-3 is girth 4¡¯ and up while assorted
and domestic are girth 4¡¯ and up. SG-3 grade is higher than SG-4, but
smaller in girth so prices are usually lower. There
was low interest for 4th Quality Veneering teak logs in August, resulting in
a sharp price drop. This log grade is preferred by European and Japanese
veneer cutters. For
SG-3 sawing teak logs, there was only one lot offered in July and only one
buyer whose bid was higher than usual. There were no sales in August for
this product. PAPUA
NEW GUINEA
Domestic
Log Prices BRAZIL Wood
product prices in Brazilian Real (BRL) showed small changes in September
2005, registering only a 0.17% increase.
However, prices in US dollar increased 1.3% in average as a result of
the continuous appreciation of the BRL against the USD since early this
year.
PENINSULAR
MALAYSIA
GHANA
International
Sawnwood Prices FRANCOPHONE
WEST AFRICA Low
demand hold prices Sawnwood
prices remained unchanged largely due, as with the log market, to low demand
from European buyers. Although there was no reported overall change in
prices for iroko and sapele sawn lumber, there was some downward flexibility
being conceded in prompt purchases. However,
exporters were confident that prices generally will firm, pointing to the
increased cost of Far East competing species and the ability of West African
producers to supply, ship and deliver in four to five weeks from order. This
short lead time is a definite advantage as European importers reduce their
stockholding to the bare minimum. Control
of portable sawnmills welcomed Production
of veneers, particularly okoume, has increased resulting in some build up of
mill stocks. However, the main markets of USA, Italy and China are rather
slow due to high inventories, with Italy unlikely to make new contracts
before the end of the year. Impact
of India¡¯s relaxation of import duties It
is not yet clear what will be the market impact of the relaxation of the
sawn lumber import duty in India. Indian mills will probably take some time
to adjust to the new duty. It is said that some mills are looking to
purchase more sophisticated machinery, presumably with a view to reducing
waste and improving quality of finished products to enter export markets. As
Indonesian and Sabah/Sarawak processors find it increasingly difficult to
source suitable species and qualities for finished and semi‑finished
products, some analysts see the possibility that in the medium to longer
term, India will begin to take market share, with the ability
to import sawn lumber from West Africa and perhaps even South
America. Some South American producers have shown interest in shipping large
volumes of sawn lumber to India.
BRAZIL
MALAYSIA
INDONESIA Russia
overtakes Indonesia as leading supplier in China Since
January 2005, Russia has overtaken Indonesia as the biggest hardwood lumber
supplier (in volume) to China, and is expected to consolidate its position
in the future. Russian hardwood
imports compete with other suppliers (notably the USA) by keeping costs down
and this is helped by low road transportation charges and a system of
preferential tax treatment. Despite
the elimination of the ¡°double rebate¡±, announced by the Chinese
government in June 2004, market sources indicate that some border trade
still benefits from reduced duty and VAT. According to local customs
statistics, roughly 90% of Russia's logs and 70% of its lumber enter China
through border trade. The
remaining 30% of Russian lumber is shipped directly to Southern China,
primarily to the Changjiang and Pearl River Deltas, where the heart of
China¡¯s furniture manufacturing is. GHANA FOB
minimum guiding selling prices The
Timber Industry Development Division (TIDD) of the Forestry Commission (FC)
released its Third Quarter
(Jul.-Sep. 2005) revised FOB Minimum Guiding Selling Prices for
lumber and other wood products. Prices
for most products remained stable and unchanged, while prices of selected
few are revised upwards between 1.5 and 4.5%. Air-dry
FAS 25-100mm x 150mm and up x 2.4m and up.
PERU The
wood products association of Loreto (AIMAL) complained that Brazilian
authorities in the Amazon River port of Tabatinga (in the Peruvian-Brazilian
border) had impeded the traffic of some Peruvian vessels. The vessels were
carrying sawnwood, plywood and mouldings to the USA and Mexico. AIMAL
indicated that port authorities were asking for documents that were not in
line with international standards or within the frame of the Treaty of
Borders, Commerce and Navigation signed between Peru and Brazil in 1909. AIMAL
complained that this caused unnecessary delays, resulting in economic losses
and untimely delivery of shipment. The Amazon River is the main means used
by the Loreto forestry industry to export timber products. AIMAL has sent a
letter to the Ministry of Foreign Affairs of Peru seeking for a solution to
the problem.
Domestic
Sawnwood Prices BRAZIL Wood
product prices increased 1.3% in average in US dollar as a result of the
continuous strengthening of the Brazilian currency since early this year.
MALAYSIA
GHANA
PERU
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Source:ITTO'
Tropical Timber Market Report
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