Logs & Lumber, Wood Products Prices Index

International Log & Sawnwood Prices

16-31th August 2004

International Log Prices

Sarawak Log Prices

India is now a major destination for Malaysian logs and as such is a competitor for Japan which relies on Malaysian log sources for about 70% of its tropical hardwood log supply.

The economy of India, together with that of China, has been growing rapidly and both countries have been buying more and more Malaysian logs such as keruing and kapur especially since Indonesia stopped exporting logs.

India is buying logs from Malaysia, PNG, Myanmar and W. African countries. In addition to tropical logs (kapur, keruing and meranti) the country buyers large quantities of New Zealand radiata pine.

China has increased its purchase of Malaysian logs and now also takes around 60% of the export log production from PNG.

Japan used to be the top buyer of Malaysian logs but now it is third behind India and China. While other countries are aggressively buying logs from Malaysia and PNG and can take a wide range of qualities, Japan continues to be strict about quality and grade, so the suppliers find it easier to market to the new buyers in China and India.

As the Japan Lumber Report says, "the markets are divided by species and grade. Quality meranti goes to Japan. Mixed Light hardwoods (MLH) and small logs go to China and keruing and kapur are for India".

FOB per Cu.m

Meranti SQ up US$180-185

small US$140-145

super small US$120-125

Keruing SQ up US$170-175

small US$140-145

super small US$110-115

Kapur SQ up US$140-145

Selangan Batu SQ up US$140-145

Francophone West African Log Prices

FOB LM B BC/C

Euro per Cu.m

Afromosia/Assamela 381 350 -

Acajou/N'Gollon 206 191 -

Ayous/Obeche 175 160 106

Azobe 168 145 114

Bibolo/Dibtou 152 114 -

Movingui 206 190 175

Fromager/Ceiba 114 114 -

Iroko 351 320 241

Limba/Frake 137 114 99

Moabi 244 221 206

Padouk 206 206 -

Sapelli 259 244 206

Sipo/Utile 274 259 -

Tali 144 129 91

Doussie 427 335 274

Gabon Okoume

Grade per Cu.m

CI US$150

CE US$122

CS US$95

QS US$176

Okoume for China

40% CI, 40% CE, 20% CS US$200 (Free alongside)

Myanmar

Veneer Quality FOB per Hoppus Ton

June July

2nd Quality No sale No sale

3rd Quality Euro3650 Euro3667

4 tons

4th Quality Euro3141 Euro3314

39 tons

Sawing Quality per Hoppus Ton

Grade 1 Av. Euro1963 Euro 1938

212 tons

Grade 2 Av. Euro1586 Euro1662

335 tons

Grade 3 Av. Euro709 Euro 769

331 tons

Grade 4 Av. Euro1158 Euro 1095

481 tons

Assorted Av. Euro716 Euro 784

317 tons

Domestic Log Prices

Brazil

Domestic wood product prices in Real remain relatively stable however, domestic timber prices in US Dollar increased on average around 6% due to the Real devaluation against the US Dollar.

The current imbalance between the supply and demand of pine logs continues to be the main reason for the increases in pine wood product prices on the domestic market.

Logs at mill yard per Cu.m

Mahogany Ist Grade No Sales

Ipe US$69

Jatoba US$43

Guaruba US$30

Mescla(white virola) US$36

Indonesia

Domestic log prices per Cu.m

Plywood logs

Face Logs US$80-95

Core logs US$55-70

Sawlogs(Meranti) US$90-100

Falkata logs US$90-95

Rubberwood US$80-90

Pine US$95-100

Mahoni US$500-515

Peninsula Malaysia

Logs

Domestic (SQ ex-log yard) per Cu.m

DR Meranti US$190-200

Balau US$165-175

Merbau US$215-220

Rubberwood US$75-85

Keruing US$175-185

Ghana

per Cu.m

Wawa US$36-44

Odum US$77-175

Ceiba US$31-53

Chenchen US$33-88

Mahogany

(Veneer Qual.) US$49-176

Sapele US$55-154

Makore

(Veneer Qual.) US$55-154

International Sawnwood

Francophone West Africa

FOB per Cu.m

Okoume Euro

FAS GMS 266

Standard and Better 251

FAS Fixed Sizes 297

Sipo

FAS Standard Sizes 640

FAS Fixed Sizes 670

Sapelli

FAS 487

Dibtou

FAS Standard Sizes 381

FAS Fixed Sizes 412

Iroko

FAS GMS 548

Scantlings 487

Strips 274

Khaya

FAS GMS 398

Brazil

Tropical sawnwood exports earned US$ 289.6 million in the first seven months of 2004, 45.8% more than the equivalent period of 2003 (US$ 198.6 million).

Pine sawnwood exports have been doing well and exports totalled US$ 164 million in the January-July period of 2004, an increase of 11.4% if compared to the same period of 2003 (US$ 147 million).

National certification achievements

Currently, Brazil has 1,249,200 ha of certified natural forests and 1,051,670 ha of certified forest plantations (mainly Pine and Eucalyptus). Brazil is ranked first in terms of the amount of certified forest area in Latin America.

There are 42 enterprises and organizations with certified forests - five of which are managed by communities that live and work in the forest. In addition, 193 companies can provide a chain of custody certificate and they reportedly have the ability to use the FSC seal in the final product.

FOB Belem/Paranagua Ports

Export Sawnwood per Cu.m

Mahogany KD FAS FOB

UK market no trade

Jatoba Green (dressed)US$530

Cambara KD US$430

Asian Market(green)

Guaruba US$240

Angelim pedra US$270

Mandioqueira US$190

Pine (AD) US$127

Malaysia

Sawn Timber

Export(FOB) per Cu.m

White Meranti A & Up US$325-330

Seraya

Scantlings (75x125 KD) US$655-665

Sepetir Boards US$185-195

K.Sesendok 25,50mm US$370-380

Ghana

FAS 25-100mm x 150mm and up 2.4m and up length

FOB Euro per Cu.m

Afromosia 855

Asanfina 480

Ceiba 180

Dahoma 300

Edinam 360

Khaya 480

Makore 449

Odum 580

Sapele 480

Wawa 300

Peru

For US Market per Cu.m

Mahogany 1C&B, KD 16%

Central Am. market US$1170-1200

Mahogany 1C&B, KD 16%

US market US$1230-1290

Spanish Cedar No.1 C&B,

KD 16%,

Central Am. Market US$615-630

Walnut 1" Thickness,

6' - 11' length US$660-700

Spanish cedar # 1 C&B,

KD 16%

Mexican market US$620-630

Pumaquiro 25-50mm AD

Mexican market US$460-490

Virola 1" to 2"

Length 6' - 8' KD US$270-290

Lagarto 2" Thickness,

6' - 8' length US$345-365

Ishpingo 2"

Thickness 6' - 8' length US$365-385

Domestic Sawnwood Prices

Report from Brazil

Wood Charcoal demand

Recently there has been a surge in demand for wood for charcoal production in the state of Minas Gerais, in the southeast region of Brazil. Large steel making plants are operating at their limit and all off them use wood charcoal, which is said to be more economic than other alternatives and is also sulphur-free.

In Minas Gerais, almost 5 million tons charcoal are consumed annually to feed the steel industry. With a shortage of eucalyptus to meet the demand, tropical-wood charcoal has been brought from Pará, in northern Brazil, more than 2 thousand km away.

During the 1990's, mineral charcoal was used by the steel industry. Despite being imported, mineral charcoal was cheaper than wood charcoal produced locally since the Brazilian currency was as strong as the US Dollar at that time.

Nowadays, the situation is totally different: a ton of wood charcoal can be bought for about US$ 140 whereas the mineral imported alternative is more than US$450.

The dramatic price increase for the imported product has driven the steel companies to consider converting their plant to operate with wood charcoal.

With an estimated consumption of 50 million cubic metres annually, the steel industry of Minas Gerais could to start running out of wood charcoal within the next two years.

Sawnwood (Green ex-mill)

Northern Mills per Cu.m

Mahogany No sales

Ipe US$294

Jatoba US$213

Southern Mills

Eucalyptus AD US$103

Pine (KD) First Grade US$134

Report from Indonesia

Sawn timber, ex-mill
Domestic construction material

Kampar per Cu.m

AD 3x12-15x400cm US$200-210

KD US$280-290

AD 3x20x400cm US$305-315

KD US$320-330

Keruing

AD 3x12-15cmx400 US$225-230

AD 2x20cmx400 US$220-225

AD 3x30cmx400 US$230-235

Malaysia

Sawnwood per Cu.m

Balau(25&50mm,100mm+)

US$235-245

Kempas50mm by

(75,100&125mm) US$175-185

Rubberwood

25x75x660mm up US$235-240

50-75mm Sq. US$245-250

>75mm sq. US$255-265

Ghana

Sawnwood per Cu.m

Wawa 25x300x4.2m US$63

Emeri 25x300x4.2m US$70

Ceiba 25x300x4.2m US$53

Dahoma 50x150x4.2m US$113

Redwood 50x50x4.2m US$94

Ofram 50x50x4.4m US$73

Peru

per Cu.m

Mahogany US$1512-1522

Virola US$186-200

Spanish Cedar US$630-640

Catahua US$177-183

Tornillo US$357-365

Source: ITTO