Logs & Lumber, Wood Products Prices Index

International Log & Sawnwood Prices

16-28th February 2005

International Log Prices

Sarawak Log Prices

FOB per Cu.m

Meranti SQ up US$200-205

small US$170-175

super small US$140-145

Keruing SQ up US$180-185

small US$150-155

super small US$140-155

Kapur SQ up US$155-160

Selangan Batu SQ up US$150-155

Francophone West African Log Prices

Only two prices changes have been reported for the end February. As forecast last month, Azobe FOB prices have increased, with LM grade up by Euro7.50 per cubic metre, to Euro145, B grade logs are up by Euro 23 per cubic metre to the same price as LM and BC/C grade logs are Euro 7.50 per cubic metre higher at Euro144.5. Azobe production is reported as low throughout the region because of difficulties in locating commercial sized and accessible logs in what is becoming a scarce species.

Bete/Mansonia LM grade FOB prices moved up by Euro15 per cubic metre to Euro90.5 per cubic metre. Okoume FOB prices remain steady in Gabon but producers elsewhere are said to be willing to shave FOB prices by up to US$ 10 -15 per cubic metre for a large order.

Mixed grade Okoume logs from Congo Brazzaville are reported as selling as low as Euro130 per cubic metre FOB but exporters from Gabon are maintaining the usual grade mix of 30% CI, 40% CE and 30% CS grades for China and report that importers are looking for 'good' okoume as they are have adequate stocks of lower grades. As a consequence Gabon expects to hold prices, especially as production is very low due to heavy rains.

Congo Brazzaville apparently also is experiencing heavy rains and production is low. In addition there are reported to be problems with the rail link from the interior to Point Noir and log export yards are almost empty of redwood logs. On the other hand, one large operator has apparently some 30,000 cubic metres of okoume in stock and is now producing only for local mills. It appears that there was some effort to influence market prices by holding a large volume in stock and it is possible that the low production in the region will at least keep prices at current levels.

There are reports of good stocks of sapele in Douala and a there is apparently a small volume in Point Noir, but here again, the low production in Congo and Central African Republic is keeping prices steady, though a large order could see US$10 per cubic metre reduction say analysts .

Reports indicate that supplies of logs from Equatorial Guinea's limited forest areas is forecast to fall in the next two years and it is rumoured large local operator will be ceasing production within this year.

FOB LM B BC/C

Euro per Cu.m

Afromosia/Assamela 381 350 -

Acajou/N'Gollon 206 191 -

Ayous/Obeche 206 190 160

Azobe 145 145 121

Bibolo/Dibtou 144 107 -

Movingui 190 175 145

Fromager/Ceiba 114 114 -

Iroko 351 320 241

Limba/Frake 137 114 99

Moabi 244 221 206

Padouk 206 206 -

Sapelli 229 213 190

Sipo/Utile 274 259 -

Tali 144 129 91

Doussie 457 335 274

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

Teak Logs

Veneer Quality FOB per Hoppus Ton

Dec Jan

2nd Quality Euro 4252 Euro4302

4 tons 5 tons

3rd Quality Euro 3888 Euro 3885

7 tons 7 tons

4th Quality Euro 2943 Euro 3387

49 tons 53 tons

Sawing Quality per Hoppus Ton

Grade 1 Av. Euro 1849 Euro 2025

156 tons 118 tons

Grade 2 Av. Euro 1450 Euro 1569

306 tons 449 tons

Grade 3 Av. Euro 708 Euro 851

139 tons 84 tons

Grade 4 Av. Euro 902 Euro 1081

629 tons 604tons

Assorted Av. Euro 912 Euro 724

20 tons 1125 tons

Domestic Euro 555 Euro 545

1798 tons 1082 tons

Domestic Log Prices

Brazil

Logs at mill yard per Cu.m

Mahogany Ist Grade No Sales

Ipe US$86

Jatoba US$53

Guaruba US$37

Mescla(white virola) US$45

Indonesia

Domestic log prices per Cu.m

Plywood logs

Face Logs US$90-100

Core logs US$60-75

Sawlogs(Meranti) US$105-115

Falkata logs US$90-95

Rubberwood US$85-95

Pine US$95-100

Mahoni US$500-515

Peninsula Malaysia

Logs

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

DR Meranti US$210-220

Balau US$175-180

Merbau US$235-245

Rubberwood US$90-95

Keruing US$180-185

Ghana

per Cu.m

Wawa US$36-44

Odum US$77-175

Ceiba US$31-53

Chenchen US$33-88

Mahogany

(Veneer Qual.) US$40-91

Sapele US$55-154

Makore

(Veneer Qual.) US$54-154

International Sawnwood

Francophone West Africa

Sawnwood prices are again unchanged and low production in the region could likely hold FOB prices very firm through to the end of the 1st quarter. Exporters point to increased demand for square edged lumber from French importers who are, themselves, responding to changes in their consumer market from traditional boules to dimension stock.

Overall, it is clear that the West African export markets are moving very noticeably away from logs to sawnwood and further processed products. European buyers seem in the market for a limited range of species such as moabi, douka, niangon and iroko, and, as mentioned, there is strong demand for the increasingly scarce Azobe.

European demand is currently only moderate at best but buyers for China are more active and prices are trending upwards.

FOB per Cu.m

Okoume Euro

FAS GMS 275

Standard and Better 260

FAS Fixed Sizes 290

Sipo

FAS Standard Sizes 488

FAS Fixed Sizes 519

Sapelli

FAS scantlings 487

Dibtou

FAS Standard Sizes 381

FAS Fixed Sizes 412

Iroko

FAS GMS 458

Scantlings 519

Strips 304

Khaya

FAS GMS 366

Brazil

FOB Belem/Paranagua Ports

Export Sawnwood per Cu.m

Mahogany KD FAS FOB

UK market no trade

Jatoba Green (dressed)US$570

Cambara KD US$420

Asian Market(green)

Guaruba US$260

Angelim pedra US$285

Mandioqueira US$210

Pine (AD) US$128

Malaysia

Sawn Timber

Export(FOB) per Cu.m

White Meranti A & Up US$330-340

Seraya

Scantlings (75x125 KD) US$625-635

Sepetir Boards US$185-195

K.Sesendok 25,50mm US$335-340

Ghana

FOB Euro per Cu.m

Afromosia 855

Asanfina 480

Ceiba 180

Dahoma 310

Emeri 350

Edinam 370

Khaya 520

Makore 450

Niangon 470

Odum 610

Sapele 480

Wawa 1C&sel 245

Peru

Exports up in 2004

Timber exports boosted the Peruvian economy in2004 as exports of wood products increased by 26% reaching US$136 million, against the US$108 millions registered in 2003.

Analysts explained that there are two main reasons for the increase in exports: increased FOB prices and greater volumes exported. Mahogany and Cabreuva say FOB price increases, export volumes of mouldings wood flooring increased and exports of plywood say increases in volume and FOB prices.

In 2004 there were significant volumes of tropical hardwoods such as Cabreuva, Cumaru and Ipe logs harvested and these were almost all processed locally and the products exported as blanks, mouldings, decking and wood flooring (small quantities). Also, there was an increase in Virola exports from the Loreto region in Peru. Exports of virola to Mexico and the surprising increase of plywood exports (up 366% in 2004 on 2003) are other outstanding facts of this year.

Peruvian timber exports are led by Mahogany and Virola sawnwood (62%), followed by blanks and mouldings (12%), plywood (10%), wooden furniture (10%) and other wood manufactures.

The increase in exports was possible because of investment and modernization of timber plants. New machinery (Kiln dryers, moulding machines and sawmills) for producing value added products such as deckings, blanks, mouldings and hardwood flooring has been installed.

Entrepreneurs are aware of the necessity of exporting value added products and promoting trade in sustainably managed tropical wood species. A recent agreement was signed recently between the government and companies in order to identify warehouses that trade in illegal timber and to rebuild the image of the country as an exporter of timber from well managed and legal.

For US Market per Cu.m

Mahogany 1C&B, KD 16%

Central American market US$1220-1250

Mahogany 1C&B, KD 16%

US market US$1300-1380

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$630-650

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$320-340

Cumaru 4" 6-11ft KD

Central american Market US$740-760

Ishpingo 2"

Thickness 6' - 8' length US$355-365

Domestic Sawnwood Prices

Brazil

Sawnwood (Green ex-mill)

Northern Mills per Cu.m

Mahogany No sales

Ipe US$364

Jatoba US$264

Southern Mills

Eucalyptus AD US$125

Pine (KD) First Grade US$162

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

Merbau US$425-435

Kempas50mm by

(75,100&125mm) US$195-200

Rubberwood

25x75x660mm up US$235-240

50-75mm Sq. US$240-245

>75mm sq. US$255-260

Ghana

Sawnwood per Cu.m

Wawa 25x300x4.2m US$73

Emeri 25x300x4.2m US$70

Ceiba 25x300x4.2m US$53

Dahoma 50x150x4.2m US$138

Redwood 50x75x4.2m US$122

Ofram 25x225x4.2m US$136

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

Abbreviations

LM Loyale Merchant, a grade of log parcel	Cu.m Cubic Metre
QS Qualite Superieure	Koku 0.278 Cu.m or 120BF
CI Choix Industriel	FFR French Franc
CE Choix Economique	SQ Sawmill Quality
CS Choix Supplimentaire	SSQ Select Sawmill Quality
FOB Free-on-Board	FAS Sawnwood Grade First and
KD Kiln Dry	Second
AD Air Dry	WBP Water and Boil Proof
Boule A Log Sawn Through and Through	MR Moisture Resistant
the boards from one log are bundled	pc per piece
together	ea each
BB/CC Grade B faced and Grade C backed	MBF 1000 Board Feet
Plywood	MDF Medium Density Fibreboard
BF Board Foot	F.CFA CFA Franc
Sq.Ft Square Foot	Price has moved up or down

Source: ITTO