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Report
from the UK
Dollar
Exchange Rates of 23th January 2006
EU
0.814
Leading
retailers face financial difficulties
Two market leading retailers, MFI and B&Q, are having a difficult time
at the moment. Although MFI has denied any crisis, its shares fell by 28%
on 26 January, before rallying later in the day. MFI have anyway slashed
some sales prices. Some analysts say that IMF may require drastic cost
cuttings. B&Q, previously reported to be in trouble, has issued new
terms of trading with suppliers. It has doubled the time in which bills
will be paid,causing concern to suppliers such as Travis Perkins.
Optimism on the UK house market
Barrett Developments, one of the leading house builders, has indicated
that it expected house prices to rise between 1% and 3% this year as
confidence returns to the market. The remarks were echoed by Persimmon plc,
who took over as the leading house builder from Barrett¡¯s last year.
However, general predictions of the timber trade are downbeat for the
first half of 2006.
Log
Prices
Sawnwood
Prices
*When
last available
Okoum¨¦ Plywood Prices
KOMO
is a quality standard for the Dutch building sector.
Report
from the Netherlands
Dutch market largely inactive
The Dutch market for tropical hardwoods remained largely inactive in the second half of January. The production of sawn timber in Malaysia, in turn,continued also in the low side due to low log inventory at sawmills. Besides various logging restrictions imposed by authorities, the influence of the wet monsoon was felt in particular. The monsoon is reported as the worst in the past 25 years. The short-supply of material had lead to
continuous price increases FOB-mill.
House building hints reactivation in spring
There are expectations once the timber trade resumes in spring following the end of the Chinese new-year celebrations and monsoon rains in Southeast Asia, and the winter season in Europe.Minister Mrs. Sybilla Dekker thinks that the house-building sector is gradually reactivating. The Minister expects the number of house-building permits to climb to 83,000 in 2006 (up from 76,200 permits in 2004), and to 86,000 in 2007. The Minister also expects that, since there is excess in office space, builders will concentrate on building
houses rather than on factories or offices. The figures are supported by the uptrend in the number of delivered housing units. From 60,000 units in 2003, it went up to 65,000 units in 2004 and to an estimated 71,500 in 2005. The Ministry's aim is to reduce the housing shortage to 2.7% by 2010.
Merbau sales decline as stocks grow
Merbau purchases by Dutch importers slid as stocks rose after steady buying at increasing prices CNF Rotterdam. Merbau¡¯s sales triggered when iroko was only available in small volumes at high prices. The available volumes of merbau were dosed and spread over a long period, avoiding the market getting rapidly saturated. Since the supply situation of iroko
has improved and its price dropped significantly, merbau sales have declined.
Brazil resumes sapupira shipments
Some reports indicate that some supply ofn FSC-certified sapupira (angelim pedra) sawnwood
3x5¡± is now released by Brazilian authorities for shipment to the Netherlands.
Sawnwood prices
1
ton of 50 Cu.ft. = 1.416 m3; PHND= Pin hole no defect grade. *Price
also for Keurhout Legal (KH-LET) certified product.
Okoum¨¦ Plywood Prices
KOMO
is a quality standard for the Dutch building sector.
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