Sawntimber,Logs and Lumber Prices Index - Mahogany, Ipe, Merbau, Redwood...

International Log & Sawnwood Prices

16-31th May 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$175-185

small US$145-155

super small US$115-125

Kapur SQ up US$155-160

Selangan Batu SQ up US$160-165

Francophone West African Log Prices

Log prices remain stable, with few exceptions. Reports indicate that Azobe prices are slightly up on renewed European demand, while sapele is, in the words of analysts, 'pretty much of a disaster' with prices negotiable everywhere in the face of weak demand. It is a buyers market for sapele.

Otherwise, market prices for all logs remained firm and unchanged throughout May.

Tropical rains in W. Africa are, at present, keeping log production levels down throughout the region. Producers in the Central African Republic and Congo have had to really cut back on harvesting because of the slump in demand for sapele, their major species. Apart from this problem, demand is good and producers are optimistic for the month of June.

FOB LM B BC/C

Euro per Cu.m

Afromosia/Assamela 381 350 -

Acajou/N'Gollon 206 175 -

Ayous/Obeche 206 191 160

Azobe 175 160 137

Bibolo/Dibtou 152 114 -

Movingui 190 175 152

Fromager/Ceiba 114 114 -

Iroko 351 320 290

Limba/Frake 137 114 99

Moabi 244 221 206

Padouk 206 206 175

Sapelli 213 198 175

Sipo/Utile 274 259 229

Tali 144 129 91

Doussie 457 366 274

Gabon Okoume

Grade per Cu.m

CI US$150

CE US$122

CS US$94

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

Mar Apr

2nd Quality Euro 4399 Euro 3731

4 tons 6 tons

3rd Quality Euro 3925 Euro 3670

8 tons 12 tons

4th Quality Euro 3647 Euro 3069

51 tons 53 tons

Sawing Quality per Hoppus Ton

Grade 1 Av. Euro 2142 Euro 1950

44 tons 23 tons

Grade 2 Av. Euro 1543 Euro 1597

190 tons 224 tons

Grade 3 Av. Euro 788 Euro 765

98 tons 79 tons

Grade 4 Av. Euro 1049 Euro 1103

986 tons 896 tons

Assorted Av. Euro 777 Euro 724

351 tons 178 tons

Domestic Euro 597 Euro 580

650 tons 860 tons

Domestic Log Prices

Brazil

Prices in Brazilian Real (BRL) remained stable however, prices in US Dollar increased 9% on average as the Brazilian currency strength against the US Dollar.

Logs at mill yard per Cu.m

Mahogany Ist Grade No Sales

Ipe US$93

Jatoba US$58

Guaruba US$40

Mescla(white virola) US$48

IBAMA the Brazilian Institute for Environment and Natural Resources has stated that it is astonished at the announcement from the National Institute for Space Research (INPE)of 6% deforestation rate in the Brazilian Amazon over the 2003-2004 period. IBAMA's forecast of the rate of clearing, mainly for agriculture, for the same period was just 2%.

The Brazilian government has, in addition to its ongoing "Fighting Deforestation Plan" launched in 2004, another initiative for limiting deforestation in the Amazon Region and this is awaiting approval by the Brazilian Congress.

This new initiative is the so called 'General Law Project on Forest Management', which proposes the allocation of large scale harvesting concession over 13 mil. ha of forests in the Amazon Region giving the holders an the responsibility and incentive for sustainable use over a ten year period.

Despite the reported increased deforestation rate in five out of the nine states that make the Brazilian Amazon, the State of Mato Grosso alone was responsible for nearly half of the total deforestation in region. This was primarily the result of the expansion of the soya bean farms.

Indonesia

Domestic log prices per Cu.m

Plywood logs

Face Logs US$100-110

Core logs US$60-75

Sawlogs(Meranti) US$140-145

Falkata logs US$90-95

Rubberwood US$95-100

Pine US$95-105

Mahoni US$500-515

Peninsula Malaysia

Logs

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

DR Meranti US$215-225

Balau US$175-180

Merbau US$250-260

Rubberwood US$95-100

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

No significant change in the prices for sawn lumber have been reported. It is noted that demand is tending to move away from the established species such as sapele and sipo towards a wider variety of more recently popular timbers including bosse, doussie movingui and moabi.

There is fast increasing demand for okan as an alternative to azobe as well as a recent well recognized substitute for ekki, for the very brisk railway sleeper business.

Reports from exporters continue to mention a problem in Italy where quite large volumes of ayous sawn lumber which were spray treated before shipment with a compound apparently containing a dioxin. Currently arguments are centered on whether or not the timber is to be allowed to be used or whether should be burned.

Some sprayed logs may still in the supply chain say analysts which will cause more problems on arrival in Italy. Producers in W. Africa say they have now changed over to a spray authorized by the Italian authorities.

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

Exports of industrial and manufactured wood products from the State of Pará, reached USD146.9 million in the first four months of 2005, up 25% compared to the same period in 2004.

Despite the increase in value, the volume exported remained stable. This was because there were more exports of higher value added products, such as flooring and decks, which grew a startling 92% over the period.

However, say local timber businesses, their competitive performance is threatened. According to timber businessmen, the forest-based sector faces difficulties in guaranteeing sustainable timber production in Pará, because forest management plans are heavily influenced and handicapped by land use and other regulations developed mainly for the agricultural sector.

FOB Belem/Paranagua Ports

Export Sawnwood per Cu.m

Mahogany KD FAS FOB

UK market no trade

Jatoba Green (dressed) US$610

Cambara KD US$470

Asian Market(green)

Guaruba US$265

Angelim pedra US$280

Mandioqueira US$230

Pine (AD) US$135

Malaysia

Sawn Timber

Export(FOB) per Cu.m

White Meranti A & Up US$330-340

Seraya

Scantlings (75x125 KD) US$615-620

Sepetir Boards US$185-195

K.Sesendok 25,50mm US$305-315

Ghana

Air-dry FAS 25-100mm x 150mm and up x 2.4m and up

FOB Euro per Cu.m

Afromosia 855

Asanfina 480

Ceiba 180

Dahoma 310

Emeri 350

Edinam 370

Khaya 540

Makore 450

Niangon 490

Odum 630

Sapele 480

Wawa 1C&sel 250

Peru

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$1380-1450

Spanish Cedar No.1 C&B,

KD 16%,

Central Am. Market US$615-620

Walnut 1" Thickness,

6' - 11' length US$640-660

Spanish cedar # 1 C&B,

KD 16%Mexican market US$630-650

Pumaquiro 25-50mm AD

Mexican market US$460-490

Virola Grade 1 1" to 2"

Length 6' - 8' KD

Mexican market US$270-290

Virola Grade 2 1" to 2"

Length 6' - 8' KD

Mexican market US$230-250

Lagarto 2" Thickness,

6' - 8' length US$320-340

Cumaru 4" 6-11ft KD

Central American Market US$760-790

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$399

Jatoba US$287

Southern Mills

Eucalyptus AD US$136

Pine (KD) First Grade US$178

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$445-450

Kempas50mm by

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

Rubberwood

25x75x660mm up US$225-230

50-75mm Sq. US$235-240

>75mm sq. US$255-265

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