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International Log & Sawnwood Prices

16 – 30th Jun  2021



  Will certification mean reduced exports?
Government efforts requiring operators to adopt
certification, along with stronger measures to eliminate
illegal timber from the domestic and international trade
are having an impact on operators in Congo and Gabon.
When forestry regulations are enforced and companies
adopt certification production and trade is likely to decline
at least in the short-term.

Azobe seized in Europe
In mid-June Rotterdam authorities seized a shipment of
azobe sawnwood said to have been shipped from Gabon
and Cameroon as the importer could not provide adequate
documents to satisfy the EUTR.

The seizure was the result of a joint Dutch and Belgian
police and Customs investigation as well as ‘Team Nature’
of the Dutch Food and Consumer Product Safety

Peter Hartog, Project Leader of the environment team in
the Rotterdam police has been quoted as saying azobe is
used in the Netherlands and Germany for heavy
construction and there are importers who buy azobe for
which the origin cannot be determined with certainty
which raises suspicions that it could have been illegally
harvested. Shippers in Gabon have disputed the suggestion
that the azobe from Gabon is illegal.


As pressure mounts on operators in the region to verify the
legality of their operations some have decided to use the
services of audit firms to achieve third party verification.

Exporters turn to triangulation as container shortage

Shippers in the region continue to face a serious container
shortage which has led to the careful management of
available inventory. Shipping companies servicing the
region are seeing a rise in triangulations, sometimes
without their agreement and this can result in penalties.

GGSC/ATIBT parnership
The GGSC-China initiative has partnered with ATIBT to
gather assessments of production and trading conditions
from the private sector in the region similar to the
information compiled from those responsible Chinese
enterprises which contribute to the GGSC-CN index. See
page XXX.

The following is a summary of the main points from the
May GGSC-Africa report. Full details can be found at:

GGSC-African Index Report(May 2020)

GGSC-Africa overview
The government has recently relaxed restrictive measures
to combat the epidemic notably reopening bars after 6 p.m.
and lifting restrictions on the number of passengers on
public transport. Epidemiologists point to a risk of further
infections. Timber industry activities are recovering.

For some companies located in the South of Congo
logging activities and trucking have resumed. Most
companies in the North continue to ship through
Cameroon. The port of Pointe-Noire operates efficiently
with little risk of interruption in export shipments.
However, most sawmills are still closed.

Democratic Republic of Congo
Logging companies are not among the priority services so
there is no production and exports have been suspended.
According to a buyer “Due to the huge volumes of illegal
wengué, the wengué price is now lower than tali. This
destroyed the most stable timber market we had”.

In spite of the Covid-19 pandemic in the country the
Minister in charge of Forestry was present at the Port of
Owendo to witness the largest timber export shipment in
Gabon's history, 26,000 cu.m to China.

In response to the Gabonese government's call for
solidarity in the fight against COVID-19 timber companies
have adopted measures to protect employees. Each
company is responsible for management of COVID-19
measures at forest sites, at living quarters. They are also
supporting the local administrations and others that have
specific problems related to the COVID crisis.

Ivory Coast
The ban on exit and entry of persons and vehicles covering
Abidjan hinders the delivery of supplies to industrial units
as well as shipment of finished products in the interior
whose port of embarkation is Abidjan. However, logging
trucks can now move without prior authorisation


   First quarter exports hit record
The volume of first quarter 2021 wood product exports
from Ghana recorded 27% year-on-year growth according
to data from the Timber Industry Development Division
(TIDD) of the Forestry Commission.

The report indicated a total of 68,617 cu.m of wood
products were exported in the first quarter 2021 compared
to 54,022 cu.m in the first quarter 2020.

The top products exported were air-dried sawnwood
(33,394 cu.m), billets (13,693 cu.m), kiln-dried sawnwood
(9,725 cu. m) and plywood for regional markets (4,632 cu.
m). These four products accounted for close to 90.00% of
total wood product exports in the first quarter of 2021.

First quarter 2021 exports earned Eur36.44 million
compared to Eur26.58 million in the first quarter of 2020.

The top four export products all recorded corresponding
increased earnings compared to 2020 for example billet
(275%), air-dried sawnwood (33%), overland plywood
(16%) and kiln-dried sawnwood (6.48%).

In the first quarter 2021 there were 92 producers who
exported twelve different products from 47 different
species including teak, wawa, ceiba, denya and essa to 41
markets with the first top five being India, the United
States, Belgium, Germany and Italy.

The Average Unit Price for the quarter increased to
Eur531/cu.m from Eur492/cu.m in 2020 representing a
rise of 8%.

AFCFTA targets raising intra-Africa trade from 12% to

The Deputy Trade and Industry Minister nominee, Nana
Ama Dokua Asiamah-Adjei, said Intra-African Trade will
soon compete with other developed trading blocs.
According to her, the African Continental Free Trade Area
(AfCFTA), aims to expand intra-African trade by over
50% in 2022.

In related news, according to the Ghana Statistical Service
survey most firms in Ghana are hopeful that AFCFTA will
help transformation their businesses. The Business Tracker
survey showed that a reduction in the cost of credit is also
likely to be a great help.

The African market accounted for almost 11% of Ghana’s
international markets for wood products in the first quarter
of 2021 and involved timber shipments to ECOWAS
members including Burkina Faso, Niger, Togo, Senegal,
Benin, Gambia and Mali.


Private forest operators appeal to government for

A coalition of private operators in the forestry sector has
appealed to government to ensure the reliable allocation of
resources for efficient and sustainable production systems
in the sector.

The Chief Executive Officer (CEO) of the Forestry
Industries Association of Ghana (FIAG) in making the
appeal said even some well financed companies cannot
operate even at 50% capacity because of a shortage of
timber raw materials.

The private forestry sector is said to provide jobs for over
400,000 people in Ghana and generates an annual income
of Eur200 million.


France supports Ghana green value chains
Ghana and France have signed a Memorandum of
Understanding to support Ghana’s efforts to develop green
value chains in and around selected protected areas in the

The project, which is in response to threats to forests
reserves and protected areas, seeks to create over 10,000
jobs for people living around the Mole national park, the
Wildlife Western corridor in the northern part of the
country and the Atiwa and the Ankasa forests.

The Minister of Lands and Natural Resource, Samuel Abu
Jinapor, signed the MOU on behalf of the government
while the French Ambassador, Anne Sophie Avé, signed
for her country.



    Covid update
Despite administering more than 250,000 vaccines daily
the number of positive Covid cases is alarmingly high.
Towards the end of June daily new cases were around
6,000. The first dose of vaccines has been given to 4.8
million while 1.8 million have had two doses. The
population of Malaysia is about 32 million. The country is
in its third lockdown.

Recovery depend on a resilient and sustainable private

On 23 June the World Bank office for Malaysia issued a
press release on the findings in its ‘Malaysia Economic
Monitor June 2021: Weathering the Surge’ The following
captures the main points from the press release.

Malaysia’s economy is projected to grow by 4.5 percent in
2021 amid a dramatic resurgence of the COVID-19 virus
beginning in mid-April 2021. This recent spike in
infections is raising concerns about the overall capacity of
Malaysia’s health system and the effects of the ongoing
cycle of opening and closing the economy on households
and firms.

This latest projection is lower than earlier forecasts of 6.0
percent growth, reflecting a slower pathway toward
suppressing the pandemic and a slower-than-expected
vaccine rollout.

According to the report, Malaysia’s immediate priority
must focus on the efficient and sustained management of
the ongoing pandemic and its effects on individuals,
households and firms.

Protecting the lives and health of citizens - and thereby
preventing further strains on the country’s health system -
is vital to ensure a safe resumption of economic activities
and a prevention of a more protracted economic downturn.

Despite the challenges posed by the pandemic, external
economic conditions are improving - helping to facilitate
an economic recovery in the country. Exports are expected
to jump to 11.2 percent in 2021, a significant rebound
from the -8.9 percent seen in 2020, as global demand
stabilises and investments in export-related activities
continue to improve.

“While the government’s main focus now is on managing
the pandemic it will not let up in supporting the more
medium-to-longer term priority of promoting the
emergence of a resilient and sustainable private sector.

A better understanding of the COVID-19 shock in terms of
its severity and distribution; and what adjustment
mechanisms firms have adopted in the face of this shock,
are necessary components in our recovery efforts,” said
Datuk Seri Mustapa Mohamed, Minister in the Prime
Minister's Department (Economy).

“Such information will enable us to design better policies
to help smooth the impact of the shock and support a
recovery led by a more resilient private sector.”

Malaysia’s economic recovery hinges on policies to
promote immediate relief and on clear, accessible and
targeted support programs to enable firms to preserve

Recovery efforts should include the extension of
conditional wage subsidies, improving the predictability of
Standard Operating Procedure (SOP) regulations and
expediting approvals and disbursements for existing loans.

In the medium and long term, however, deep and
structural reforms will be required for a private-led postpandemic
economic recovery.

The World Bank Group’s Inclusive Growth and
Sustainable Finance Hub in Malaysia has worked closely
with the Government to address and monitor the effects of
the pandemic on the country’s economy.

Real-time surveys have shown that Malaysian firms
vulnerable and that the pandemic is exacerbating issues
that the country’s private sector was already grappling
with before the pandemic, said Victoria Kwakwa, World
Bank Vice President for the East Asia and Pacific Region.

“As a post-pandemic recovery will largely be driven by
the private sector, efforts should be made to enhance the
resilience of this sector over the medium-to-long term.”



Sarawak statistics
Log production in Sarawak in the first 4 months of 2021
totalled 733,733 cu.m compared to the 804,678 in the
same period in 2020. In the first 4 months of 2021 log
exports amounted to 193,552 cu.m metres to just two
countries India (177,671 cu.m) and Taiwan P.o.C (15,881

Plywood Prices
Plywood traders based in Sarawak reported the following
export prices:


  Indonesian furniture exports to Canada
Statistics Canada reported 2020 imports of Indonesian
furniture increased by 21% compared to the previous year.
In the first quarter of 2021 furniture exports to Canada
increased by almost 50% compared to the same period in

Recently, the Indonesian Consul General in
Toronto, Leonard F. Hutabarat, held a virtual meeting
with Sinthusan Sivagnanam, CEO of Avanica Inc., a
Canadian company that has a wooden furniture factory in
Jepara, Central Java. The meeting was to discuss latest
developments in the export of Indonesian wooden
furniture to Canada as despite the huge potential,
Indonesia's furniture exports are still faced with a number
of challenges including the scarcity and high cost of
shipping containers.


Digital services for Indonesian exporters
The Deputy Minister of Foreign Affairs, Mahendra
Siregar, expressed optimism that Indonesia companies are
on track to revive exports especially to Europe where there
is good demand for Indonesian products such as seafood,
rattan, wood products and furniture.

The Ministry of Foreign Affairs facilitates virtual business
matching between Indonesian entrepreneurs and importers
and distributors in Europe, the latest of which involved 35
Indonesian companies with business partners from
Western and Southern Europe.

Mahendra said the Ministry will continue to arrange
business meetings as they provide benefits for
entrepreneurs including Indonesian and European


Social forestry delivers higher incomes for

The Director General of Social Forestry and
Environmental Partnership (PSKL) in the Ministry of
Environment and Forestry (KLHK), Bambang Supriyanto,
said that social forestry is having an impact on the
finances of communities living around forests.

He pointed out that the social forest programme has
generated job opportunities for over 1 million families.
According to KLHK data, as of May 2021 the social
forestry programme extended over 4.7 million hectares
distributed throughout Indonesia.

Up to June 2021 an additional 276,550 ha. have been
assigned to the programme. Bambang reported that, based
on a survey on the impact of social forestry on 103 social
forest business groups in 2020, 46% felt that their family
income had doubled and 26% said that their family income
increased 2-3 times with another 26% said the increase
was less than double.


Online sales platform for forest products
Perum Perhutani, a State-Owned Enterprise which has the
duty and authority to carry out the planning, management,
exploitation and protection of forests in its working area
has developed a platform in order to support marketing via
mobile apps. Perum Perhutani Commercial Director,
Ahmad Ibrahim, said this application will be boosted to
facilitate trade in Perhutani products making it easier for
consumers to shop.

Perhutani provides the guarantees on the quality, the origin
and the legality of the wood products it markets. Ibrahim
said Perhutani implements Sustainability Forest
Management and holds 49 FSC Controlled Wood
certificates and eight FSC FM-CoC certificates.


Steep drop in fire hotspots
The Environment and Forestry Ministry has satellite data
showing that between January to mid-June 2021 the
number of fire hotspots representing potential forest fires
dropped substantially compared to the same period last

The satellite-based evidence is derived from Terra/Aqua
(LAPAN) data in hotspots with a confidence level of more
than 80% indicating that from1 January 15 June 2021,
268 hotspots were detected, a fall from the 745 hotspots in
the same period last year.



  Rising Covid-19 infections
Residents in Maungdaw, a border town close to
Bangladesh in Rakhine State, are concerned about a new
virus outbreak in the town after three people who had
received two vaccinations tested positive.

Despite increased COVID-19 cases, including among
people who have not traveled, there is currently still no
plan to close Rakhine’s schools, said the head of the state
education office, U Tin Thein. Basic education schools
opened on 1 June in Rakhine and more than 300,000 or
almost all pupils have attended schools in the state,
according to the office. Sagaing Region has seen the
largest number of infections followed by Yangon Region
and Chin State. Clusters of infections have also been
reported in Yangon and Bago regions.

According to the Ministry of Health, Myanmar has
recorded 152,356 COVID-19 cases with 3,290 deaths
nationwide. In the border area with India the fatality rate is
reported as rising.


Third round of EU sanctions over the military coup and
subsequent repression

On 21 June 2021 the Council of the European Union
issued a press release with details of the additional
sanctions imposed on individuals and entities in Myanmar.


The press release says “The Council today imposed
sanctions on 8 individuals, 3 economic entities and the
War Veterans Organisation in relation to the military coup
staged in Myanmar/Burma on 1 February 2021, and the
ensuing repression against peaceful demonstrators. The
EU's restrictive measures are largely aligned with those of
major international partners.

The individuals targeted by sanctions
include ministers and deputy ministers, as well as
the attorney general, who are responsible for undermining
democracy and the rule of law and for serious human
rights violations in the country. The four entities are
either state-owned or controlled by the Myanmar Armed
Forces (Tatmadaw), contributing directly or indirectly to
the military's revenues or activities.

By targeting the gems and timber sectors these measures
are aimed at restricting the junta’s ability to profit from
Myanmar’s natural resources, while being crafted so as to
avoid undue harm to the people of Myanmar.

Restrictive measures, which now apply to a total of 43
individuals and 6 entities, include an asset freeze and a
prohibition from making funds available to the listed
individuals and entities. Additionally, a travel ban
applicable to listed persons prevents them from entering or
transiting through EU territory.

Pre-existing EU restrictive measures also remain in place.
These comprise an embargo on arms and equipment that
can be used for internal repression, an export ban on dualuse
goods for use by the military and border guard
police, export restrictions on equipment for monitoring
communications that could be used for internal repression,
and a prohibition on military training for and military
cooperation with the Tatmadaw.

The restrictive measures come in addition to the
withholding of EU financial assistance directly going to
the government and the freezing of all EU assistance that
may be seen as legitimising the junta. The EU remains a
steadfast supporter of Myanmar/Burma’s people and of the
country’s democratic transition.”

As a result of the latest EU sanctions which imposed
restrictive measures on the Myanma Timber Enterprise,
the Forest Joint Venture Corporation and the Minister of
MONREC, timber exporters have been advised to await an
evaluation of the impact of the new measures.

Recently the authorities resumed issuing export licenses
for sawnwood. The licenses had been suspended by
the State Administration Council (official name of military
government) from the beginning of April this year.

The private sector understands that exports of sawnwood
will be permitted until 31 December 2022 after which only
exports of semi-finished and finished products will be

Although the latest EU sanctions do not refer to a ban on
EU imports of wood products from Myanmar exporters in
Myanmar and EU importers wish to seek clarification on
this issue before resuming shipments of wood products
including sawnwood.

It has been learned that a Wood-based Industries
Development Committee was formed last month with the
Deputy Minister as Chair and the Managing Director of
the Myanma Timber Enterprise as Secretary along with
private sector representatives. It is understood that the
natural forest log export ban will remain in place.


  House price index continues up
The Reserve Bank of India released its quarterly Housing
Price Index (HPI) for the period January-March 2020-21
based on transaction-level data received from housing
registration authorities in ten major cities. The HPI
increased 2.7% year-on-year in the March quarter 2020-21
compared to 3.9% growth a year ago. The cities covered
are: Ahmedabad, Bengaluru, Chennai, Delhi, Jaipur,
Kanpur, Kochi, Kolkata, Lucknow and Mumbai.

The HPI growth showed large variation across major
cities, from an increase of 15.7% in Bengaluru to a
contraction of 3.6% in Jaipur.


Wood product price indices rise
The Ministry of Commerce and Industry has reported the
official Wholesale Price Index (WPI) for ‘All
Commodities’ (Base: 2011-12=100) for May increased to
132.7 from 129.3 in April 2021.

The annual rate of inflation, based on the monthly WPI,
was, year on year, 12.94% in May, 2021. The high rate of
inflation in May was primarily due to effect of a low base,
the rise oil and mineral prices and a rise manufactured
product prices.

The index for manufactured products, which accounts for
64% of the index, increased. Out of the 22 groups of
manufactured products making up the index 17 increased
in May. The 4 groups for which prices declines were
reported included non- metallic mineral products; wood
and of products of wood and cork; textiles; tobacco
products. For one group there was no change.

The press release from the Ministry of Commerce and Industry
can be found at:

Industrial production and exports recovering
India's exports rose by over 4% to US$14.06 billion in the
first two weeks of June driven higher by shipments from
the engineering, gems and jewellery and petroleum
product sectors. Imports also rose nearly doubling to
US$19.59 billion during the same period.

Industry leaders in India anticipate an improvement in
domestic demand this year despite the economic setback
due to the COVID-19 pandemic as there are some signs of
a revival of economic activities as restrictions are rolled

The industry has also been encouraged by a recent report
from the Reserve Bank of India in which the bank says
industrial production and exports have surged recently and
despite the second wave, goods and services tax (GST)
collection in 2021-22 so far has been better than in 2020-



  Vietnam’s imports of wood from Europe soaring
In the first 10 days of June 2021 Vietnam’s imports of
wood products from all sources reached US$62.9 million.

According to the Center for Industry and Trade
Information (Ministry of Industry and Trade) the recently
concluded EU-Vietnam Free Trade Agreement (EVFTA)
has given a boost to the trade in wood and wood products
(W&WP) between Vietnam and EU.

The high quality, verifiable origin and zero export/import
tax on wood products imported from EU play an
increasingly important role providing raw materials for
Vietnamese enterprises.

In the first 5 months of 2021 Vietnam imported 177,590
cu.m of logs from the EU, up 21% over the same period
of 2020. Of the total volume of imported logs ash
accounted for 84% (148,850 cu.m), up 9.5% over the
same period of 2020. Imports of poplar increased sharply.

Imports of sawnwood from the EU also increased
reaching over 130,000 cu.m, up 76% over the same
period in 2020. Pine remains the most important species
imported at 49,260 cu.m.

Of the EU suppliers, imports from Belgium increased by
21%, France by 45%, Germany by 18% and Finland by

Vietnamese enterprises say imports of wood raw material
from the EU have risen because they have full order
books exports through to year end.

See: Nhập khẩu gỗ nguyên liệu từ Châu Âu tăng mạnh(

Rising exports Canada
According to data from the General Department of
Customs, Vietnam's W&WP exports to Canada in May
2021 reached US$20.8 million, up 138% compared to
May 2020. In the first 5 months of 2021 W&WP export to
Canada amounted to US$104.3 million, up 69% over the
same period in 2020.

Wooden furniture is Vietnam's main export to Canada. In
the first 4 months of 2021 exports of wooden furniture
accounted for 89% of the total exports of W&WP to

In Canada, as the impact of the pandemic receded, the
housing market heated up and there are no signs of it
cooling. This is the main reason behind the surge in
wooden furniture demand in recent months. According to
data from the Statistics Agency of Canada, imports of
wooden furniture into Canada in the first 4 months of 2021
reached US$847.84 million, up 46% over the same period
in 2020.

In particular, Canada increased imports from China and
Vietnam. Imports from China reached US$326 million, up
74% and that from Vietnam reached US$152 million, an
increase of around 63% over the same period in 2020.

The rapid growth of W&WP exports from China and
Vietnam into the Canadian market presents a challenge.
From 5 May 2021 the Canadian Border Services Agency
(CBSA) decided to apply anti-dumping and anti-subsidy
duties on upholstered seats from China and Vietnam.

For Vietnam, in addition to the 7 foreign enterprises that
are subject to anti-dumping and anti-subsidy duties of
between 17.44% - 89.77%, all other exporters are subject
t o tax rate of 101.5%.

Export of office furniture rising
In May 2021 Vietnam's office furniture exports reached
US$46 million, up 96% compared to May 2020. In the
first 5 months of 2021 exports of office furniture reached
US$216 million, up 73% over the same period in 2020.

According to data from the General Department of
Customs of Vietnam exports of office furniture in April
2021 reached US$45.8 million, up 132% compared to
April 2020. In the first 4 months of 2021 office furniture
exports reached US$169.8 million, up 67% over the same
period in 2020.

From the end of April because of a resurgence of corona
infections Vietnam’s economy slowed as enterprises cut
production and exports. Office furniture exports, however,
were the exception. The international demand for wooden
office furniture remains strong.

The US topped the list of office furniture imports from
Vietnam in the first 4 months of 2021 reaching US$110
million, up 79% over the same period in 2020.

Exports of office furniture to China, EU, Australia, New
Zealand, Saudi Arabia, Puerto Rico and Malaysia also
maintained high growth in the first 4 months of 2021.

Overseas investments
The government’s Foreign Investment Agency
has reported Vietnamese firms invested over US$540
million overseas in the first half of 2021, an almost three
fold rise year on year. Of the total some US$400 million
was top-up investments to existing projects.

Among the 12 fields of investment Vietnamese firms
channeled US$270 million into science-technology
projects and this accounted for 50% of all first half
investments. Wholesale and retail project attracted almost
US$150 million.

The US was the top destination for Vietnamese capital,
Cambodia ranked second followed by Canada and France.



  Interest rate hike as inflation grows
Inflation measured by the Extended National Consumer
Price Index (IPCA) was 0.83% the highest for a May since
1996. The Central Bank raised its benchmark interest rate
by 75 basis points in May as it continues to wind down its
stimulus measures in the face of rising inflation which was
over 8% over the past 12 months.

The Bank's monetary policy committee said in a statement
it expected "another adjustment of the same magnitude or
more at its next meeting in August”.

Inflation has emerged as a central concern for policymakers
in Brazil as the economy begins to show signs of
recovery. Data for the first three months of this year
showed that GDP grew 1.2% from the previous quarter
bringing the size of the economy back to where it was
before the pandemic.

Investment in rail network to raise demand for sleepers
After months of economic decline due to pandemic 2021
prospects are improving and looking good for the
country's infrastructure and services sectors.

According to the Ministry of Infrastructure, Land and
Transport Secretariat in the coming years there will be an
expansion and renovation of the Brazilian railway network
and this will raise demand for wooden sleepers. The
Ministry’s goal is to attract more than R$40 billion in
private investments in the Brazilian railway system.

An example of where investment is required is the
construction of “Ferrogrão” (Iron-grain) railway, a project
that will run 933 kilometers between Sinop (Mato Grosso
State) and Miritituba (Pará state). This will be one of the
largest initiatives in the rail network construction.

According to projections by the Brazilian Chamber of
Construction Industry (CBIC) spending in the civil
construction sector could increase by around 4% in 2021
after falling 2.8% in 2020.

More support for small businesses
On 4 June 2021 a law (No.14.16) on the National
Programme to Support Micro and Small Businesses
(PRONAMPE) was enacted by the federal government.
This law enables the government to extend more
assistance to small and medium-sized companies affected
by the pandemic. The scheme will provide low-interest
loans, subsidised through the Operations Guarantee Fund
(Fundo Garantidor de Operações - FGO). PRONAMPE
will also create at least a R$5 billion credit line for micro
and small businesses.

This amount could rise to R$25 billion depending on the
participation of public and private banks.

In 2020 nearly half a million entrepreneurs benefited from
PRONAMPE including companies in the timber sector.

Micro-enterprises with annual sales of up to R$360,000
and small businesses with annual sales from R$360,000 to
R$4.8 million can access loans. Each loan is guaranteed by
the Federal government for up to 85%. The money can be
used for investments such as acquiring equipment or
carrying out renovations and for operating expenses such
as employee wages, paying business bills and purchasing
office supplies/goods.

Export update
In May 2021 Brazilian exports of wood-based products
(except pulp and paper) increased 76% in value compared
to May 2020, from US$235.5 million to US$414.8

Pine sawnwood exports grew 54% in value between May
2020 (US$43.2 million) and May 2021 (US$66.5 million).
In volume, exports increased almost 20% over the same
period, from 250,400 cu.m to 300,200 cu.m.

Tropical sawnwood exports increased 17% in volume
from 35,200 cu.m in May 2020 to 41,200 cu.m in May
2021. In value terms exports rose 14.5% from US$14.5
million to US$ 16.6 million, over the same period.

Demand in international markets for plywood is strong
and Brazil’s pine plywood exports increase over 200% in
value in May 2021 in comparison with May 2020, from
US$39.9 million to US$125.3 million. In terms of volume
exports increased 59% over the same period from 155,800
cu.m to 247,000 cu.m.

There was also a surge in demad for tropical plywood and
the volume of exports increased 62.5% and in value by
100% from 4,000 cu.m (US$1.6 million) in May 2020 to
6,500 cu.m (US$3.2 million) in May 2021.

As for wooden furniture export earnings jumped from
US$31.8 million in May 2020 to US$69.7 million in May
2021 an almost 120% rise.

Timber exports soaring
Brazil exported 1.18 million tonnes of wood products
between January and mid-June 2021 which represents
86% of the total shipped in 2020. In the first two weeks of
June 2021 the country exported 173,000 tonnes compared
to only 40,000 tonnes in the same period in 2020.

Furniture exports increase
After two years of decline Brazilian furniture exports
registered strong growth in the first five months of 2021.
Between January and May export earnings reached
US$385.9 million, 69% above US$228 million reported in
the same period of 2020. Despite the overall increase
among the five main importing countries, imports by Chile
stand out as the country doubled imports of Brazilian
wooden furniture.


  Opportunities in Malaysia for timber exporters
Agustín Palacios, Minister Counselor and Charge
d'Affaires of the Peruvian Embassy in Malaysia said
during a virtual forum, Malaysia is a major timber
exporter but is currently promoting the manufacture of
value-added products and requires additional timber raw
materials to manufacture furniture, doors, frames and
flooring. He pointed out that Malaysia could diversify its
timber raw material base with Peruvian species.

In order to promote Peruvian timbers a representative of
the Ministry of Foreign Affairs suggested Peru would
benefit from participation in Malaysia trade fairs. It was
also suggested that companies in Peru should explore ecommerce
opportunities to reach out to Malaysian

Public-private cooperation the way forward for the
forestry sector

The president of the Wood and Wood Industries
Committee of the Association of Exporters (ADEX),
Enrique Toledo, highlighted efforts by the government, the
private sector and civil society in creating opportunities
for constructive dialogue. He pointed out that it is
important to generate trust and commercial actions that
contribute to the establishment of a credible and legal
trade in sustainably harvested products from Peruvian

Exports to rebound this year - Minister
Peru’s Minister for Foreign Trade and Tourism, Claudia
Cornejo, has said that Peru's exports are expected to
recover to pre-pandemic levels by December this year.

Between January and April this year exports rose around
30% year on year. Peruvian exports totalled US$46.4
billion in 2019 but fell almost 16% in 2020 according to
the Global Business and Economy Research Center of the
Association of Exporters (Adex).

The export recovery will be driven by trade in traditional
products (minerals) and non-traditional exports including
agricultural and forest products.






Source:ITTO'  Tropical Timber Market Report

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