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Report
from the UK
Dollar
Exchange Rates of 8th February 2006
EU
0.837
Manufacturing and building still at inertia
Manufacturers continued to struggle with a further fall in orders hitting both output and confidence during the last quarter of 2005. Research shows that manufacturers
reacted by reducing staff and a further reduction of 24,000 is expected in this quarter, due to higher fuel prices and a lower demand.
The annual growth rate of house prices in December was 2.3%, up from the previous month. However, the building sector remains subdued, affected by the very cold weather in recent weeks.
Economic indicators
Last week, a UK parliamentary by-election held in a Scottish constituency was won by the Liberal party turning over a majority by the Labour party. The results are believed to be caused by the closure of companies in the area. Some analysts think this could be the turning point in the New Labour¡¯s fortune and in the UK economy. The basic interest rate of 4.25% was held once again by the Bank of England amid calls for a reduction, which now appears unlikely in the near future. The Office of National Statistics (ONS) has reported that the trade deficit for goods (excluding services) reached
¡ê6.06 billion last December and a record ¡ê65.50 billion for the whole of 2005.
*When
last available
Plywood and MDF Prices
*When
last available
Report
from the Netherlands
Prices remain firm despite flat Dutch market
The Dutch market for tropical hardwoods remained flat while lunar new-year celebrations continued in Asian producer countries. Some local business was carried out only at discounted prices, particularly for dark red meranti (DRM), sapupira and sapelli, as Dutch retailers and end-users were putting downward pressure on prices.
Despite the quite market, few fresh quotations for 3x5" KD DRM PHND show firm levels while prices for nemesu KD PHND even went up. Since bad weather conditions remain in Peninsular Malaysia, it is generally expected that the cost of logs will continue the upward
trend seen since late November. Moreover, possible hikes in oil prices would have an added impact on container rates, sawmillers?overheads (higher diesel prices for aggregates and band-saws) and kilning costs.
Supply from Brazil remains restricted
The supply situation from Brazil to the Dutch market remains problematical due mainly to a backlog of harvesting permits pending approval in that country. Export of Brazilian sawn timber into the Netherlands is heavily dis rupted. Bad weather conditions in Brazil are
compounding the situation.
Acquisition in the Dutch timber market
Recent press reports indicate that Royal Jongeneel, one of the largest traders in timber products since 1797, plans to takeover four companies from the DPW van Stolk Holding BV (part of the Indofin Group). Jongeneel, which operates independently from its parent company
N.V. Deli-Universal, has already a network of 34 subsidiaries nationwide. Jongeneel also comprises M/s Heuvelman (a large softwood trader) and the well known brand Jewe (importers of
mouldings /semi-finished timber products). Jongeneel aims to expand its network of regional branches and gives Stolk the opportunity to concentrate more on its core activity, which is the international trade of hardwood and softwood, and the production/distribution of (semi-)finished (tropical
hardwood) timber products.
Exakta holding declare d bankrupt
Recent news indicates that the Exakta holding has been declared bankrupt in late January. The holding operated window frame factory Exakta (PVC windows) and the parquet factory Rowi. The latter, an old manufacturer of tropical parquet made of hardwood species such as teak,
merbau, kembang semangkok and robinia, was a known brand in the Dutch market. Despite aggressive marketing campaigns, Exakta sales shrank due to the economic recession in the Netherlands.
In one of the marketing campaigns in 1998, Exakta offered customers refund for purchases of Rowi flooring or Exakta windows by 2006. The holding has now to arrange a refund of about .16 million to 1,650 clients but funds will probably be insufficient due to preferential claims (loans, social funds, etc.).
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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