News from the UK 

Log Prices in the UK 

 

UK Sawnwood Prices  

  

Plywood and MDF in the UK  

  

For more information on the trends in the UK market please see www.ttjonline.com and www.hardwoodmarkets.com

 

Report from Holland  

Businesses back to work  

During the long holiday-season in Europe the Dutch market for kiln dry Dark Red Meranti seems to have weakened even further.  European holidaymakers are just returning to work and now everyone is speculating on where the markets will be headed.  

Because of a lack of leads as to market direction analysts can only provide some hints of what may be ahead for the trade. During the summer months the market did not come to a complete standstill but trading continued at an extremely slow pace, without any spectacular movement of note.  

Traditionally the months July and August is 'silly' season in the trading sector. Many ask why is the holiday period so long in Holland.  

Holland is divided into several regions and each region decides its own holiday period within these two months.  Usually the holidays are coordinated but it can happen, as it did this year, that while the northern and the southern parts of the country were still working, the other regions were on holiday.  

This pattern of holiday periods disrupted the opportunities for trade since, for example, if a trader in the south has clients in the middle and the north the commercial activity is quite disrupted by this 'vacation-spread'. When the first batch of holidaymakers returns workers in the other regions may be just going and before you know it two months of trade is disrupted.  

Signs of price discounting 

Whether it was the fear that exporters in Peninsular Malaysia would perhaps lower their sales-prices in response to the reduced demand during the European summer, or the urge on the part of importers to lower landed stocks and sailings, the fact is that, in the quiet summer spell, certain traders made serious efforts get a sale at prices far below replacement cost. This could have repercussions in the market for some time.  

The price discounting by the few was not apparently just a few Euro per cubic metre but substantial reductions.  

As so often the case, these efforts were largely fruitless in the sense that not much extra business volume could be achieved and the only result was that the price eroding pulled down the price of timber from all other suppliers.

Prices for Sapupira from Brazil are reported as down which is really bizarre since Sapupira is in demand and enjoys an attractive price tag and there is no need to discount Sapupira prices.  

Dumping price offers as were seen for Meranti did not, however, occur for Merbau. Despite the holiday season demand in Merbau remained fair. This timber is not readily available and since Iroko and Afzelia Doussié are equally difficult to (if not even more difficult to get) prices for all Merbau items firmed further.   

Still shortages  

The trade is reporting that as of the end of august the supply situation in Malaysia did not change. The supply situation for typical Dutch sizes is still characterized by acute shortages of certain items (Merbau, Nemesu and to a certain extent Meranti Bukit).  

This led to firming of the CNF Rotterdam price levels for most items. The exception was Seraya for which analysts say they have seen a slight easing of prices.  

As the rain season in Peninsular Malaysia will begin within the next 6-8 weeks, and whilst log-stocks at most sawmills are not so abundant, it is expected that the current difficult supply and offer situation for items for the Dutch market will continue.  

 All based on container shipment at US$1900 per G.P. 40 ft. box. Freight variation for buyers account.