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International Log & Sawnwood Prices
16 – 30th Jun 2023


 Still awaiting demand rebound in China
Producers report demand is slowing significantly particularly in China and the Philippines. There are rumours that a major customer in the Philippines has a substantial stocks of okoume which has resulted in a slowdown in shipments of okoume.

There are also indications of reduced purchases by buyers for Middle East markets because of high landed stocks. The largest buyer, Iraq, is said to be holding back on new orders.

China, the key market, is also facing an economic slowdown. The anticipated market rebound did not materialise in the first half of the year and prospects look slim for a major bounce back in the second half of this year.

The pace of any recovery is closely tied to China's housing projects which are currently facing challenges but the recent interest rate cut, although small, is aimed at boosting the housing and construction sectors.

Eucalyptus used alongside okoume in S. Africa
Another market experiencing a slowdown is South Africa. There has been a drop in demand as more housing projects are using aluminium and plastic window frames which are cheaper alternatives to timber.

Swartland Municipality, the largest consumers of okoume from Congo and Gabon for government housing projects, has switched from using 100% okoume to incorporating Chilean eucalyptus for some enduses. It appears manufacturers have resolved the issue of gum pockets in eucalyptus and find it to be a cost-effective and durable alternative to okoume.

Regional round-up
Price stability has been maintained but there are regional developments affecting the timber industry. As usual during this time of the year, Cameroon experiences the rain season which impacts timber operations and transportation. Elsewhere in the CAR political tensions surround a potential referendum for the president's third term.

In Gabon there are several developments directly or indirectly impacting the timber sector. An effort is underway to establish demand for carbon credits and the Forestry Minister, along with government officials from Congo Brazzaville is in France to promote sales.

Gabon is currently experiencing a dry period. The railways are operational, primarily transporting manganese and some timber. Road repairs are underway in Gabon to be completed before the return of heavy rains in late August.

The public works and logistics company (TPL), the State concessionaire for the construction and management of weighing stations in Gabon, has calleds on road users to respect the truck weight limit regulations.

From 19 June action against overloaded trucks will be stepped up and, according to the domestic media, overload trucks may be seized.


Summit of the Three Basins
ATIBT has provided information on the ‘Summit of the Three Basins’ to be held in Brazzaville in October 2023.


Through the eyes of industry
The latest GTI report lists the challenges identified by the
private sector in the Republic of Congo and Gabon.



 First quarter wood exports record 15% growth
According to the first quarter 2023 Timber Industry
Development Division (TDD) report Ghana’s timber and
wood product exports earned the country Eur34.46 million
from a volume of 76,779 cu.m, a 15% year on yaer
increase in value and a year on year increase of 3% in
value. In the first quarter 2022 earnings were Eur30.04
million from a total export of 74,853 cu.m.

The data show that air dried sawnwood, kiln-dried
sawnwood, plywood to the regional market, billets and
plywood to other international markets accounted for 53%,
13%, 10%, 5% and 5% respectively of the first quarter
export volume.

Products for which significant increases in export volumes
were reported were briquettes, plywood and mouldings.

The TIDD reports there were one hundred and forty-three
exporters active during the first quarter in 2023 of which
the top five leading exporters were Logs and Lumber
Limited, Samartex Timber and Plywood Company
Limited, Multimodal Freight Services Limited, John Bitar
and Company Limited and K Lorvert Company Limited.

The major species that went into the production of export
products were teak, ceiba, wawa, denya, and eucalyptus.
The main markets were India, Togo, Germany, Belgium
and the US.

The TIDD report also indicated that, the overall Average
Unit Price increased from Eur401/cu.m in the first quarter
of 2022 to Eur449/cu.m in the first quarter of 2023.

GEPA opens ‘Ghana Trade House’ in Kenya
The Ghana Export Promotion Authourity (GEPA) has
opened a new trade and business center in Kenya as part of
Ghana’s first permanent trade mission to that country. The
centre named the ‘Ghana Trade House’will facilitate the
export of Ghanaian goods and services to the East African
nation promoting the implementation of the African
Continental Free Trade Area (AfCFTA).

According to the CEO of GEPA, Dr. Afua Asabea Asare,
the establishment of the Ghana Trade House forms part of
the implementation of Ghana’s National Export
Development Strategy (NEDS) which aims to generate
US$25.3 billion in non-traditional export revenues by
2029. Non-traditional exports include timber wood

The official opening of the centre coincided with the
engagement of the Ghana Standards Authority (GSA) and
the Kenya Bureau of Standards (KEBS) to facilitate a
Memorandum of Understanding (MoU) between the two
organisations to establish a framework for mutual
recognition and acceptance of standards to ensure efficient
trade and regulatory compliance between the two



Construction sector growth forecast
A report from ConstructionAfrica says the Ghanaian
construction industry plays a significant role in Ghana's
economic growth contributing more than 15% to the GDP.
It also employs approximately 420,000 people.

At present the construction sector is active with significant
investment in infrastructure development.

The government's commitment to developing the sector
has attracted local and foreign investors, leading to the
emergence of several construction companies. The Public-
Private Partnerships (PPP) Bill, first drafted in 2016, was
finally implemented and was vital to driving growth in the
construction industry.

The Ghana construction industry is expected to achieve an average annual growth rate of more than 4% between 2023 to 2026 with new construction companies emerging and existing companies expanding their operations.


Afrexim funds for AfCFTA Adjustment Fund
The Governor of the Bank of Ghana, Dr. Ernest Addison, has said the African Export-Import Bank (Afreximbank) has provided US$10 billion in funding to be used as an adjustment fund to support countries under the African Continental Free Trade Area (AfCFTA).

The Governor said this at the 30th Annual General Meeting of the Afreximbank held in Accra, from 18th to 21st June 2023.

According to him, the fund will ensure that African countries under the free trade pact and their respective private sector entities can effectively participate in trading. He further explained that the AfCFTA Adjustment Fund, which is being established by the AfCFTA Secretariat with support from the Afreximbank, follows a directive from the African Union (AU) Summit of Heads of State and Government and the AfCFTA Council of Ministers responsible for trade.

Dr. Addison further noted that the fund would help African countries to effectively adjust to AfCFTA tariff removals and prepare them to participate in the new trading regime.




 Trade surplus rose in May
According to the Ministry of Investment, Trade and Industry (MITI) Malaysia's trade surplus rose in May 2023 registering the 37th consecutive month of double-digit growth since May of 2020. This was supported by higher exports in petroleum products, electrical and electronic products, machinery, equipment and parts as well as processed food.

Exports to major trading partners, notably China, the United States and Japan recorded expansion. On trade with China, which contributed 17% of Malaysia’s total trade, MITI said it declined slightly in May 2023.


MTCC - no new interpretation in C&I for SFM
The Malaysian Timber Certification Council (MTCC) has issued a statement addressing a misleading narrative circulating about the Malaysian Timber Certification Scheme (MTCS) that has caused confusion among stakeholders.

MTCC emphasised that there have been no new interpretations introduced regarding Criterion 6.11 of the MTCS ST 1002:2021 Malaysian Criteria and Indicators for Sustainable Forest Management.


Sabah forests for carbon trading
Sabah Deputy Chief Minister, Jeffrey Kitingan, has called on the Prime Minister to promote Sabah’s carbon trading opportunities. Kitingan said the state government has already set aside two million hectares for carbon trading.

The Deputy Chief Minister recently held a meeting on carbon trading with the state’s steering committee and said the State is making progress with carbon trading and will start trading on a small scale soon.


In related news the Sarawak Forest Department Director has said Permanent Forest Estates (PFEs) in Sarawak have the potential to deliver carbon storage in addition to timber and environmental services. He reported that around 4 million hectares of the State’s forest cover have been gazetted as PFEs.

The Director is reported as saying “We are making a great effort towards achieving our target of getting all our long-term forest timber licenses certified. To date, 20 Forest Management Units (FMU) and seven Forest Plantation management units (FPMU) with a total area of 1.78 million hectares and 97,966 hectares respectively have been certified under the Malaysian Timber Certification Scheme ”.


Through the eyes of industry
The latest GTI report lists the challenges identified by the private sector in Malaysia.



 EU and domestic regulations could weaken furniture exports
The combined impact of the EUDR and the Indonesian government's legality verification system (SVLK) could potentially hurt the domestic furniture industry and erode Indonesia's furniture export competitiveness according to Abdul Sobur, chairman of the Indonesian Furniture and Handicraft Industry Association (Himki).

When the EUDR is implemented this will add to production and delivery costs and if prices do not rise then eventually the regulations will weaken Indonesia's competitiveness, Abdul said. He added, unnecessary costs must be eliminated as restrictive regulations could hamper the target to achieve US$5 billion in furniture exports.



In related news, the Director General of Agro-Industry at the Ministry of Industry (Kemenperin), Putu Juli Ardika, denied that the EUDR will negatively impact exports of products from Indonesia as, according to him, “the majority of exporters already have certificates meeting EU standards ensuring the manufacturing process for exported products does not damage the forest.


Coordinating Minister of Economic Affairs, Airlangga Hartarto, has said that Indonesia has 18 months remaining to act before the implementation of the EUDR, adding that the regulation would label products as originating from high-risk, standard or low-risk countries.

He said Indonesian commodities potentially impacted by the EUDR include palm oil and derivatives, coffee, soya, cocoa, beef and wood products.

Deforestation rate in 2022, a steady decline
The Minister of Environment and Forestry, Siti Nurbaya, reported Indonesia's deforestation rate in recent years to the House of Representatives. According to the Minister, Indonesia's deforestation rate continues to decline year by year. She revealed that in 2015 Indonesia's deforestation rate was recorded at 1.09 million hectares but it had fallen to 460,000 hectares in 2019.

The rate of deforestation fell again in 2021 to 110,000 hectares. The Minister revealed that in 2022 deforestation extended over 107,000 hectares. She explained that, to monitor deforestation, the Directorate General of Forestry Planning and Environmental Management has developed a National Forestry Monitoring System (Simontana) that records the condition of Indonesia's forests.


Social forestry creating economic growth in villages
The Minister of Environment and Forestry has said that the concept of social forestry, which gives communities the right to manage forests in a sustainable manner, can create economic growth in villages. Communities can secure social forestry management rights through five schemes: village forest management schemes, community forestry, community plantation forestry, customary forest and partnership schemes.

The Minister said that social forestry has also expanded to the downstream sector so that communities can now develop into productive communities.


Seek export opportunities from US-China trade dispute
Indonesia must optimise opportunities arising from the ongoing trade dispute between the United States and China according to the Coordinating Minister for Economic Affairs, Airlangga Hartarto. He said that Indonesia has become a member of the first regional cooperation group to focus on supply chain issues namely the Indo-Pacific Economic Framework (IPEF).

The other IPEF members include Brunei, Fiji, Singapore, Thailand, Malaysia, Vietnam, Australia, India, Japan, New Zealand, South Korea, the Philippines and the United States.

IPEF member countries have committed to realising economic cooperation involving the private sector as well as implementing technical assistance and capacity-building programmes.



  State-owned banks sanctioned further
The Office of Foreign Assets Control (OFAC) in the United States has imposed fresh sanctions on Myanmar’s defense ministry and two state-owned banks saying that they facilitated transactions between the military-controlled government and overseas markets, including for weapons and military equipment.

In response to US action a government spokesman said the US was pushing Myanmar toward an economic and political crisis and that the new sanctions won’t hurt the economy because international banking services are also provided by local private banks and branches of foreign banks.



According to timber exporters the new OFAC sanctions came as no surprise. The Myanma Timber Enterprise (MTE), the sole and official suppliers of timber raw material, is already facing sanctions. The new OFAC measures could be a serious blow to the MTE since the US dollar is the currency for tenders.

During the first two months of the 2023-24 fiscal year the value of timber exported was around US$13 million according to the Myanmar Trade Department website. The timber sector is no longer a top foreign currency earner. Currently, the agricultural sector is top earning followed by marine products and minerals.

Slim hope for quick recovery
In its latest Economic Monitor report the World ban says “economic conditions in Myanmar have stabilised in the first half of 2023. Exchange rates have remained steady, while inflation in food and fuel prices has eased. Most indicators suggest economic activity is slowly increasing, albeit from a very low base.

Manufacturing output and new orders have risen quickly, sales of domestic products have picked up, while passenger and freight transport volumes are rising. Although agricultural production seems to have weakened, profitability is improving as farmgate prices rise and input costs ease and this is likely to prompt higher production in coming seasons.

Firms across all sectors report operating at higher capacity in the last quarter, with companies in non-retail services performing best. Retail sector performance has also improved, with sales picking up and firms sourcing more goods locally.

However, several factors are constraining the pace of this recovery. Household incomes remain weak, limiting the ability of domestic demand to drive growth. High prices and shortages resulting from import restrictions make it difficult for many businesses to source essential inputs, while power outages have become prominent. Investment remains weak, with new business registrations at a low level. Other than in the agriculture sector, reported profits continue to decline as the conflict raises costs and limits activity in some areas.

Overall, the economy is still operating well below pre-pandemic levels, in sharp contrast to the rest of the region. Policy changes continue to create uncertainty and obstacles for doing business, with further regulations and restrictions introduced on international trade and financial transfers”.



 Inflation trends down
The annual rate of inflation based on the India Wholesale Price Index (WPI) in May was minus 3.5% compared to minus 0.9% recorded in April 2023.

The decline in the rate of inflation in May was primarily due to a fall in prices of mineral oils, basic metals, food products, textiles, non-food articles, crude petroleum and natural gas and chemical products. Out of the 22 NIC two-digit groups for manufactured products, 7 groups saw an increase in prices whereas 11 groups saw a decline.

The groups that have recorded major increase in prices were electrical equipment; pharmaceuticals, medicinal, chemical and botanical products; tobacco products; wood and products of wood and cork (except sawnwood); leather and related products and beverages. Some of the groups that say a decrease in prices were basic metals, food products and textiles.


State Forest Departments to report statistics directly to national database
The Ministry of Environment, Forest and Climate Change has released the “National Working Plan Code-2023 for forest management and this includes a new approach to data reporting. The new Code-2023 requires state forest departments to report data to a national centralised database. This could result in forest data become available much faster than at present.

Code-2023 was announced by Shri. Chandra Prakash Goyal, Director General of Forests and Special Secretary, Ministry of Environment, Forest and Climate Change. The Code-2023 guides State Forest Departments in the preparation of working plan for forest across the country.




 Wood and wood product (W&WP) trade highligts
 Imports of logs and sawnwood from the US in April 2023 stood at 42,760 cu.m worth US$19.46 million, down 12% in volume and 10% in value compared to March 2023 but up 1.6% in volume and down 8% in value compared to April 2022. In the first 4 months of 2023 imports of raw wood from the US amounted to 147,260 cu.m worth US$65.05 million, down 5% in volume and 12% in value over the same period in 2022.

 Imports of logs and sawnwood in April 2023 were the lowest level in many years, amounting to 41,330 cu.m at a value of US$15.85 million, down 37% in volume and down 36% in value compared to March 2023 and down 49% in volume and down 48% in value compared to April 2022.

 Vietnam’s W&WP exports to the UK in May 2023 reached US$21 million, up 14% compared to May 2022. In the first 5 months of 2023, exports of wood and wood products to the UK have been estimated at US$81.3 million, down 32% over the same period in 2022.

 Vietnam’s office furniture exports in May 2023 were valued at US$23 million, down 25% compared to May 2022. In the first 5 months of 2023 office furniture exports earned US$107.3 million, down 32% over the same period in 2022.

 Vietnam's wood imports in May 2023 were at 6,700 cu.m, worth US$3.0 million, up 16% in volume and 15% in value compared to April 2023. However, compared to May 2022 imports decreased by 79% in volume and 76% in value. In the first 5 months of 2023 wood imports stood at 58,300 cu.m worth US$25.9 million, down 51% in volume and 44% in value over the same period in 2022.

 In May 2023, exports of wood and wood products earned US$1.05 billion, down 3.4% compared to April 2023 and down 25% compared to May 2022. In particular, WP exports accounted for US$760.5 million, down 2% compared to April 2023 and down 20% compared to May 2022.

 In the first 5 months of 2023 W&WP exports were valued at US$4.96 billion, down 29% over the same period in 2022. Of this WP exports contributed US$3.37 billion, down 35% over the same period in 2022.

 Vietnam’s W&WP exports to the German market in May 2023 reached US$3.7 million, down 62% compared to May 2022. In the first 5 months of 2023 W&WP exports to Germany earned about US$27.5 million, down 57% over the same period in 2022.

 According to preliminary statistics exports of living-room and dining-room furniture in May 2023 generated US$191 million, down 28% compared to May 2022. In the first 5 months of 2023 exports of living-room and dining-room furniture accumulated US$836 million, down 40% over the same period in 2022.

 In May 2023 W&WP imports into Vietnam were valued at US$216.7 million, up 28% compared to April 2023 but down 33% compared to May 2022. In the first 5 months of 2023 W&WP imports totalled at US$850.1 million, down 33% over the same period in 2022.

 Vietnam's imports of poplar wood in May 2023 were 38,700 cu.m, worth US$16.3 million, up 29% in volume and 28% in value compared to April 2023. Compared to May 2022 imprts increased by 14% in volume but decreased by 7% in value. In the first 5 months of 2023 poplar imports reached 119,200 cu.m, worth US$49.7 million, down 8% in volume and 22% in value over the same period in 2022.

Declining log and sawnwood imports from Africa
Vietnam’s imports of logs and sawnwood from Africa in April 2023 declined to the lowest level in many years with a volume of 41,330 cu.m equivalent to US$15.85 million, down 37% in volume and 36% in value compared to March 2023 and year-on-year down 49% in volume and 48% in value.

Over the first 4 months of 2023, imports from Africa were recorded at 285,510 cu.m, with a value of US$113.25 million, down 18% in volume and 11% in value year-on-year.

CITES has listed the entire African population of species under three genera including Pterocarpus spp. (padouk), Afzelia spp. (mahogany/pachy/doussie) and Khaya spp. (Acajen) in Appendix 2.

With this CITES decision trade in the newly added species from African countries require licenses issued by the CITES management authority of the supply country in accordance with CITES regulations.

As Africa is the top supplier of tropical hardwood to Vietnam and padouk is the major imported timber from Africa the CITES decision has had a significant impact on the import and use of African wood in Vietnam. Many wood-industry villages which specialise in traditional furniture for the domestic market are suffering a scarcity of wood raw material. Continued imports of species listed in CITES is forecast to decrease in 2023 and thereafter.

African hardwood suppliers
In the first 4 months of 2023 wood imports from Cameroon, the Democratic Republic of the Congo, South Africa, Nigeria, Gabon, the Republic of Congo declined, while imports from Angola increased.

Cameroon remains as the top supplier delivering 24,680 cu.m (equivalent to US$10.54 million) in April 2023, down 37% in volume and 34% in value compared to March 2023 and down 39% in volume and 40% in value compared to April 2022.

Over the first 4 months of 2023 imports of raw wood from Cameroon reached 169,310 cu.m, with a value of US$73.16 million, down 4% in volume and 2% in value over the same period in 2022.

Imports from Cameroon in April fell sharply compared to March 2023 and showed a remarkable year-on-year decline. Over the first 4 months of 2023 log imports from Cameroon decreased by 3% in volume but increased by 1.3% in value compared to the same period in 2022. Sawnwood imports fell by 5% in volume and 6% in value.

Angola exported to Vietnam 1,240 cu.m (US$393,000) in April, down 79% in volume and 34% in value compared to March 2023 and down 39% in volume and 40% in value compared to April 2022.

In the first 4 months of 2023 imports of raw wood from Angola totalled at 20,010 cu.m with a value of US$5.47 million, up 10% in volume and 16% in value over the same period in 2022. Angola is currently the second largest supplier of African hardwood to Vietnam.

The volume of sawnwood shipped from Angola to Vietnam over the first 4 months of 2023 amounted to 16,650 cu.m, with a value of US$4.77 million, up 45% in volume and 74% in value over the same period in 2022; In contrast, imports of logs from this market decreased by 50% in volume and 65% in value.

South Africa sold 4,670 cu.m to Vietnam worth US$1.23 million in April 2023, down 24% in volume and 24% in value compared to March 2023 but up 2% in volume and 14% in value compared to April 2022.

Over the first 4 months of 2023 imports of raw wood from South Africa reached 16,240 cu.m, with a value of US$4,345 million, down 39% in volume and 35% in value over the same period in 2022.

Nigeria’s supply dropped in the first 4 months of 2023. Sawn wood imports from Nigeria to Vietnam were 12,840 cu.m, with a value of US$3.65 million, down 28% in volume and 26% in value.

African log and sawnwood prices
The average price of logs imported from Africa into Vietnam in April 2023 was US$372/cu.m, down 3.5% compared to March 2023 but up 3.3% compared to April 2022. In the first four months of 2023 the average price of imported logs was US$404/cu.m, up 13% over the same period in 2022.

The average price of imported sawnwood in April 2023 was US$391/cu.m, up 4% compared to March 2023, down 3% compared to April 2022. Overall, in the first 4 months of 2023 the price of sawnwood from Africa averaged US$387/cu.m, up 2.4% over the same period in 2022.

Serious decline in exports of wood and wood products
At a press conference during the Vietnam ASEAN International Furniture and Home Accessories Fair 2023 (VIFA ASEAN 2023) Tran Ngoc Liem, Director of the Vietnam Chamber of Commerce and Industry, Ho Chi Minh City said that because of the difficult situation in the global economy each month there are hundreds of businesses withdrawing from exporting.

The sharp decline in exports of wood and wood products is due to rising production costs, especially power and fuel. The slow recovery of the world economy and the collapse of some banks in the world has also affected the buying trend of consumers said Tran Ngoc Liem. Consumers have tight budgets for non-essential products such as wood and wood products in some markets such as the USA and EU and this has caused a sharp drop in demand.

Another problem is that wood industry enterprises still have difficulty in accessing capital and bank interest rates are high. Many businesses are short of orders but finding a solution is a challenge but essential if companies want to maintain production and retain workers.

At the current growth rate it is forecast that exports of wood and wood products in the first half of 2023 will have dropped by around 30% compared to the same period in 2022.

According to Mr. Cao Ba Dang Khoa, Acting General Secretary of the Vietnam Coconut Association in the face of the current difficult situation, organising a furniture fair would help Ho Chi Minh City gain an opportunity to become a regional and international furniture centre.

As one of the businesses having great success in finding orders at fairs, Mr. Cao Van Dong, General Director of Kettle Interiors Asia Co., Ltd. said that in March 2023 his business participated in VIFA EXPO 2023 in Ho Chi Minh City and obtained positive results.

Mr. Dang Quoc Hung, Chairman of the Board of Directors of Alliance Handicraft Wooden Fine Art Corporation said that the Vietnam ASEAN International Furniture and Home Accessories Fair 2023 with the theme " Discover the fascination of Vietnamese furniture and handicrafts”, is expected to attract 350 domestic and international furniture and handicraft manufacturers.

According to Mr. Hung the fair promises to become an important trade promotion venue of ASEAN's regional stature. The diversity and abundance of product lines displayed by enterprises from participating countries will meet all the demands of the multi-segment interior and exterior of the world market.

The Vietnam ASEAN International Furniture and Home Accessories Fair 2023 (VIFA ASEAN 2023) is hosted by the Alliance Handicraft Wooden Fine Art Corporation in collaboration with Vietnam Chamber of Commerce and Industry - Ho Chi Minh City Branch (VCCI - HCM). The event will take place from 29 August to 1 Septembe at the Saigon Exhibition and Convention Center.



 Pau-Brazil bows seized
Brazil imposes restrictions on the harvesting of brazilwood or pau-brasil (also known as pau-de-pernambuco) (Paubrasilia echinata) and sales of artifacts made of brazilwood are strictly regulated.

However, an illegal trade in brazilwood has been a major challenge for authorities for years. The states of Espírito Santo and Bahia are the two major states with remaining natural forest where brazilwood can be found and it is here that there are cases of illegal logging.

At the Guarulhos International Airport the Brazilian Institute of Environment and Renewable Natural Resources (IBAMA) inspectors have since 2016 seized more than 1,500 finished brazilwood bows and also pieces of brazilwood. IBAMA says that, currently, no Brazilian company that is in the bow manufacturing sector has stocks of brazilwood and that exports of brazilwood bows and brazilwood items haveceased.


In Brazil, production of bows is done by few companies. Most of which are located in Espírito Santo state. Many foreign bow manufacturers hold sizeable stocks of sawn brazilwood so they can maintain production for some years.

Development of the forestry sector
About 58% of Brazil is covered by forests and yet the forest economy contributes only a small share of GDP. Brazil accounts for less than 10% of the world production of tropical timber according to the International Tropical Timber Organization.

According to a study by the 2030 Amazon Project the global trade in non-timber forest products is worth more than US$150 billion but Amazonian companies had less than a 2% share of this total so the potential for growth is enormous.

The 2030 Amazon Project suggests SFM techniques are already applied by many timber companies in the Amazon and if just 5% of the area of the Legal Amazon were under SFM it would be possible to supply 10 million cubic metres of wood per year without deforestation.



Export update
In May 2023 Brazilian exports of wood-based products (except pulp and paper) decreased 35% in value compared to May 2022, from US$503.3 million to US$329.2 million.

Pine sawnwood exports declined 12% in value between May 2022 (US$84.6 million) and May 2023 (US$74.5 million). In volume, exports increased 4% over the same period from 295,200 cu.m to 306,300 cu.m.

Tropical sawnwood exports dropped 34% in volume, from 43,900 cu.m in May 2022 to 29,000 cu.m in May 2023. In value exports fell 21% from US$18.8 million to US$14.9 million over the same period.

Pine plywood exports faced a 37% decline in value in May 2023 compared to May 2022, from US$101.9 million to US$63.8 million. In volume exports fell 18% over the same period, from 239,200 cu.m to 195,900 cu.m.

As for tropical plywood, exports also declined in volume by 46% and in value by 44%, from 5,900 cu.m and US$3.4 million in May 2022 to 3,200 cu.m and US$1.9 million in May 2023.

As for wooden furniture the exported value decreased from US$58.8 million in May 2022 to US$52.1 million in May 2023, an 11% fall.

Indicators of Brazilian furniture exports
The report "Monitoring of Furniture Exports" is developed for companies associated with the Brazilian Furniture Sector Project, an initiative organised by ABIMÓVEL (Brazilian Association of Furniture Industries / Associação Brasileira das Indústrias do Mobiliário) and ApexBrasil (Brazilian Trade and Investment Promotion Agency).

According to a report published in April 2023, Brazil exported about US$57 million (FOB) in furniture. This result represented a 10% decrease compared to April 2022. Furniture exports to Germany increased 42% in the 12 months to April this year and grew 21% year on year. However exports to Saudi Arabia dropped 60% over the past last twelve months.

Exports to Chile fell 22% in the last twelve months. In contrast exports to Colombia dropped 23% in the past twelve months and exports to the United Arab Emirates fell over 14% in the last twelve months.


New import controls in Argentina impact exports
Recent import regulations adopted in Argentina are having a big impact on Brazilian export sales. In order to secure greater control of supply chains and monitor of foreign trade operations the Argentine government introduced the “Import System of the Republic of Argentina” (SIRA) which came into force in October 2022.

The new system restricts the granting of non-automatic licenses (licenças não automáticas - LNAs). A non-automatic license is an instrument used by countries to control the entry of products into their countries. Brazilian exporters can only ship products when a permit is obtained directly from the Argentine government.

According to a survey conducted by the National Confederation of Industry (CNI) with 252 Brazilian exporters 77% of the companies indicated that there was a negative impact on export operations after the creation of SIRA. Out of these, 84% said there was a reduction in the value exported to Argentina.

Among the exporters that reported a decrease in the value exported after the implementation of the new system, 49% said that the reduction in sales to Argentina in the period was around 40%.

With the implementation of the new system the list of goods subject to non-automatic licenses jumped from 1,474 at the beginning of 2020 to 4,193 by the end of 2022 and 99% of the products are from the manufacturing industry. Considering 2022 trade data, 59% of Brazilian exports to Argentina are subject to this measure.

The three main problems pointed out by exporters are the very long payment terms (79%), the bureaucracy for the release of foreign exchange even after compliance with the established deadline (55%) and the change and extension of deadlines after approval of the SIRA (42%).


Through the eyes of industry
The latest GTI report lists the challenges identified by the private sector in Brazil.



 Furniture imports fall in first four months of 2023
In the first four months of 2023 the value of Peruvian imports of wooden furniture was US$14.1 million which represented a significant decrease of 40% compared to the same period in 2022 (US$23.6 million).

Brazil, as usual, was the main supplier at US$9.4 million representing 64% of the total imported despite having fallen 40% compared to the same time during 2022. China was the second largest supplier at US$1.9 million.

Shipments of semi-manufactured wood products fall
According to the Services and Extractive Industries Management of the Association of Exporters (ADEX) export shipments of semi-manufactured wood products in the first 4 months of the year contracted 41%, earning just US$16.7 million compared to US$28.5 million in the same period of 2022.

The drop can be explained by lower demand from the main buyers, France down 6% (US$8.2 million), Belgium, down 39% (US$2.2 million) and China down 79% (US$2.1 million).Among the top ten markets were Mexico (US$1.1 million), Denmark (US$1.0 million), USA (US$0.6 million), New Zealand (US$0.4 million), Germany (US$0.2 million), Mauritius (US$0.19 million) and Australia (US$0.14 million).

Over the past 10 years (January-April period) shipments of semi-manufactured goods remained relatively stable. In 2014 the amount was almost US$22.2 million, in 2015 US$22.14 million, in 2016 about US$22.3 million, in 2017 US$23.4 million and in 2018 US$22.9 million.

In 2019 the amount went to US$28.4 million, to drop to US$15.6 million in 2020. In 2021 it recovered and reached US$23.9 million and in 2022 it closed at US$28.5 million.

According to figures from the ADEX Data Trade Intelligence System between January and April 2023 the most important item was profiled wood (except ipé) totalling US$6.8 million.

Other shipments include moulded tropical wood (US$3.9 million) other longitudinally profiled wood (US$2.15 million), slats and friezes for parquet (US$1.4 million) other wood profiled on one or more faces (US $1.2 million) among others.

Lima was the region from which most semi-manufactured wood products were exported followed by Ucayali (US$5.5 million) and Madre de Dios (US$1.2 million).

Semi-manufactured products ranked first among the shipments of this sector surpassing sawn wood (US$14.5 million), construction products (US$1.6 million), firewood and charcoal (US$1.4 million) and furniture and its parts (US$1.1 million).

ADEX to boost shipments from the Amazon
Over the past five years exports from the Amazon Region represented just 0.8% of total national shipments and were from two sectors, hydrocarbons and agro-industry. This was reported by the Association of Exporters (ADEX) who said that last year shipments from that part of the country totaled US$809 mil. registering an increase of 65% compared to 2021.

Traditional product shipments amounted to US$473 mil. and non-traditional at productsthe balance.

In the first quarter of this year shipments from the Amazon amounted to US$235.1 million, showing a growth of 6% compared to the same period in 2022 (US$220.9 million). Primary goods shipments (US$143.9 million) registered an increase of 22% but value-added shipments (US$91.1 million) contracted 12%.

Loreto was the leading exporting region with US$89 million and the main item was crude oil, (95%), as well as ornamental fish, multicellular centrifugal pumps and sawn wood. San Martín, with US$4 million and an increase of 14% exported cocoa beans, palm oil, lead and its concentrates, and coffee.

Madre de Dios with US$48 million shipped to the United Arab Emirates, India, Belgium, China and South Korea out of a total of 24 destinations products such as gold, Brazil nuts, sawnwood, profiled wood and others.

For its part, the Ucayali region, with US$40 million, exported crude palm oil, tropical wood, cocoa beans, and mouldings to 23 countries including Mexico, Colombia, France, China, Dominican Republic and Malaysia.

OSINFOR 15 anniversary
On the occasion of its fifteenth the Forest and Wildlife Resources Supervision Agency (OSINFOR) held an event where they presented the main achievements made in collaboration with important stakeholders in the sector with the aim of contributing to the management, competitiveness and sustainable use of forest resources.

The event programme included three presentations on issues of public interest:

 The contribution of inspection to forest governance for the benefit of forest users and sustainability in the use of resources

 How, through governance and within the framework of Digital Transformation, it is possible to optimise forest supervision to achieve improvements in its results through the efficient use of resources and incorporation of digital technologies.

 Strategic indicators to strengthen the use and trade of legal timber contributing to improving decision-making and the implementation of public policies.




Source:ITTO'  Tropical Timber Market Report