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Wood
Products Prices in The
UK & in Holland |
Market
News from the UK Economists
in the UK are saying that the UK economy is now "firing on all
cylinders" with growth rates expected to reach 3.5% this year and
next. However, they are quick to point out that the future is not without
danger. Analysts
report that confidence in both the manufacturing and services sectors is
strong with domestic and export orders up.
One problem that has surfaced is the difficulty in recruiting
experienced staff. However,
with the enlargement of the EU and the ease at which labour can flow, this
problem may solve itself. The
UK housing boom shows no sign of easing with house prices rising by more
than Streling10 per day according to the building societies! The continued
increase in house prices is because of low interest rates and the acute
shortage of new homes. Housing completions are down by 16% over the past
year according to the trade. The
overheating housing sector and the rapid improvement in growth forecasts
is likely to prompt the Bank of England to raise interest rates soon. The
construction group Travis Perkins has reported sales up 12% in the first 4
months of the year compared to the same period last year. In
the US hardwood sector, data shows that last year the UK imported less US
hardwoods but prices generally firmed largely because of shortages of
White Oak a shortage caused by bad weather in the US which limited
harvesting. Log Prices in the UK FOB
plus
commission per
Cu.m Sapele
80cm+LM-C Euro 260-275
Iroko
80cm+LM-C Euro 300-320
N'Gollon70cm+
LM-C Euro 190-210 Ayous
80cm+LM-C Euro 190-200 UK Sawnwood Prices FOB
plus Commission
per Cu.m Brazilian
Mahogany FAS
- Teak
1st Quality 1"x8"x8'
Stg2035-2350 Tulipwood
FAS 25mm
Stg300-315 Cedro
FAS 25mm Stg420-450 DR
Meranti Sel/Btr 25mm Stg335-355
Keruing
Std/Btr 25mm
Stg240-260 SapeleFAS
25mm Stg320-330 Iroko
FAS 25mm
Stg425-460 Khaya
FAS 25mm
Stg340-355 Utile
FAS 25mm
Stg405-425 Wawa
No1. C&S 25mm Stg210-220 Plywood and MDF in the UK CIF
per Cu.m Brazilian
WBP BB/CC 6mm
US$570 "
Mahogany 6mm When
last available
US$1265 Indonesian
WBP 6mm US$525-570 Eire,
MDF BS1142
per 10 Sq.m CIF 12mm
Stg36.25 Market
Report from Holland In
the previous report for the Dutch market, there was an unfortunately error
in the prices so, to begin with, the prices as of April 15 2004 are shown
below. Prices
valid in the period 16-30th April are reported at the end of this section
of the report. Prices
of some major Asian species CNF Rotterdam per ton of 50 cuft. April 15
2004 Malaysian DRM Bukit KD
Sel.Bet PHND in 3x5" at USD 1030 Malaysian Nemesu KD Sel.Bet PHND
in 3x5" at USD 1045 Indonesian DRM Bukit KD Sel.Bet
PHND in 3x5" at USD 1005 (lengths through 14') Malaysian DRM Seraya KD Sel.Bet
PHND in 3x5" at USD 1060 Indonesian DRM Seraya KD Sel.Bet
PHND in 3x5": no stock currently Malaysian DRM Seraya SGS
certified (Keurhout) KD Sel.Bet PHND in 3x5" not available; MTCC certified Seraya KD Sel.Bet
PHND in 3x5" can be done at USD 1070/1080 Malaysian Merbau
KD Sel.Bet Sapfree in 3x5" at USD 1070 All is based on container
loading. Merbau prices are based now on loading by 40fter container, due
to the increase late last year in break bulk freight charges (MYR 80/t).
The prices above are based on a container shipment Port Kelang in Malaysia
to Rotterdam at USD 1900 per box. Prices
Moving It
will be seen that, by the end of April, there has been a notable increase
in the prices for the various Meranti-species compared prices at the end
of the month. On the other hand, it will be seen that certain
specifications cannot be quoted because the stock position of exporters in
Malaysia for typical Dutch sizes is either extremely low or sold out.
Under the present conditions it is very difficult for millers in Malaysia
to get log supplies. Another
factor of importance is that, all of a sudden, there is a more optimistic
feeling in the Dutch hardwood trade and this is reinforcing the current
prudent purchasing policies of the importers. Many ask "is this
quicksand or indeed a real recovery of the market" Most
analysts say that it is too early to tell but, the fact is that, some
joineries mills seem to have a stronger order book position and,
anticipating that this may lead to business, the traders have start ed to
purchase the few parcels which exporters can offer.
The importers are aware of the tight supply situation in Malaysia
and, with likely freight increases of approximately US$200 per 40 ft
container (Port Kelang to Rotterdam) rumoured, the pressure is towards
higher prices so the trade has started to buy.
They do so now being afraid that, if they wait, they may miss the
chance to pick up what little volume is available and will be caught by
higher shipping costs. As
analysts say, what is happening now, as far as purchasing is concerned, is
nothing less than follow the leader. Over a long period of time traders
and end-users in Holland have introduced tough measures aimed at bring
down landed stock levels and these have been effective as overall landed
stock in Holland are now not high. These measures, along with the hand to
mouth purchases have lowered cost levels and, with some stirring in the
market now, the feeling is that no-one wants to be caught without landed
stocks if the market movement is sustained to the beginnings of a
recovery. Caution Urged The
sentiment is now that the market will pick up and that more building
permits will be issued and the mills will have ample work. However,
analysts warn a prudent and careful approach is the best approach so as to
avoid any overheating of the market. Speculative or reckless buying is not
good as there is little evidence of a sustainable market recovery. It must
be remembered that the economic situation in Holland continues to give
reason serious concern. Not a day passes when the government announces
additional spending cuts. The
risk is that there is a danger of over optimism. It is good to remember
that about a year ago one or two importers suddenly had a more optimistic
view of the market and started to buy. Unfortunately that hoped for
recovery did not materialise and led to the stock dumping and severe price
cutting. The
exporters have been watching events in Holland and are of the impression
that a recovery of the Dutch Meranti market is likely. This is leading
them to be cautious about revealing the available positions. Over the past
months the exporters have been on the sidelines, but are now beginning to
offer some small parcels for prompt shipment against current better price
levels. Nevertheless the volumes that are offered (and those that are
expected to be offered) will probably not be big, judging from the idle
capacity of the KD-plants where contacts report that there are not many
parcels in typical Dutch sizes. The current price development of
PHND-Meranti will no doubt lead to lower availability of Nemesu and Seraya
for the Belgian market as the Dutch pay a better price for lower grade (PHND). Tight
Supplies One
thing good in the current situation is that traders now seem more
conscious of the extremely difficult supply situation in Malaysia.
Sentiment has also been given a boost as the US dollar has gained some
ground on the Euro moving from close to 1,30 to 1,185 dollars per Euro.
All this has led to a remarkable improvement of the sales price free
delivered Dutch buyers' yard. It is rather amazing how fast the trend
turned. A Few weeks ago Indonesian Bukit 3x5" could perhaps make Euro
500 per Cu.m, now it is almost impossible for a end-user in Holland to
push the price below Euro 610/620 per Cu.m.
This clearly demonstrates how whimsical the Meranti-market in
Holland can be, one week there is a bout of severe price discounting to
push some sales at any cost. A Few weeks later importers tumble over each
other to outbid each other to secure at least some volume but at levels
considerably higher than the landed stock that they were forced just days
earlier. Prices
CNF Rotterdam per ton of 50 cu ft Malaysian
DRM Bukit KD
Sel.Bet PHND in 3x5" US$1080 Malaysian
Nemesu KD Sel
& Btr PHND 3"x5"
US$1085 Indonesian
DRM Bukit KD
Sel.Bet PHND in 3x5"
not available Malaysian
DRM Seraya KD
Sel.Bet PHND in 3x5" US$1100 Indonesian
DRM Seraya KD
Sel.Bet PHND in 3x5"
not available MTCC
Certified KD Seraya Sel&Btr
PHND 3x5 US$1020-1030
Merbau
KD Sel.Bet
Sapfree in 3x5"
not
available All based on container shipment
at US$1900 per G.P. 40 ft. box. Freight variation for buyers account.
Merbau shipment is now based on container loading due to the hugh
breakbulk freight increase of Malaysian Ringgit 80/ton. กก |
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