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Peru's virola exporters are worried over low prices
¡¾2002.12.06¡¿

Peru's virola exporters are worried because FOB prices are so low. About 90% of the exported virola goes to Mexico but lately the FOB price fell to US$ 300.00 per cubic metre compared to US$ 350.00 registered the last month (October).

The reduction in prices is because many new exporters have entered the business according to local analysts. The new exporters are desperate to enter the international market and ate therefore, offering prices that are said to be almost at the level of their production cost.

Other factors affecting prices say analysts is the recent visit to Peru of many Mexican importers who came looking for virola and have been buying huge volumes and, in some cases, signing exclusivity agreements with Peruvian companies to lock up all their production for the Mexican market.

For US Market	per Cu.m
Mahogany 1C&B, KD 16% Central American market	US$1200-1220
Mahogany 1C&B, KD 16% US market	US$1140-1150
Walnut 1" Thickness, 6' - 11' length
	US$630-655
Spanish cedar # 1 C&B, KD 16%
	US$660-680
Virola 1" to 1 1/2 Thickness,
6' - 8' length, KD	US$300-310
Lagarto 2" Thickness,
6' - 8' length	US$300-320
Ishpingo 2"Thickness 6' - 8' length
	US$400-420