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Dollar
Exchange Rates of 5th
August
2005 UK Pond 0.56 EU Euro 0.81 Report from the UK Tha Bank of England (BoE) cut interest rates by 0.25%
last week in an effort to bolster the economy but it gave a clear
indication that the rate was unlikely to be cut again soon. The aim of the
BoE is to prevent inflation from exceeding 2% per annum. But with oil
prices reaching new highs in recent days, all sectors of the economy are
affected. The office of national statistics says that manufacturing costs
are rising at their fastest rate in 20 years. In the year to July, input prices overall rose 15%.
Producers were only able to pass on some of the costs, so output prices
rose by only 3% in the same period. James Latham, one of the leading hardwood importers,
has performed well over the last year, showing a £4m profit. It is well known that the timber industries rely
heavily on the performance of the construction industry. The latest
statistics show a reasonably buoyant situation, with new house starts up
from last year. However, a forecast for timber sales (in value) in the UK
points to only 1-3% growth up to 2009, which would mean that volume would
fall. The tropical timber market is faced with two problems:
the increasing need for certified timber, and price. This translates into
a different approach to species selection, bearing in mind that many users
do not feel that the species is paramount and are generally not looking
for criteria beyond price when making their choices. This means there is a
continuing change in the sourcing of supplies and today Africa is coming
into the frame, in preference to South America and South East Asia. Log
Prices in the UK
Sawnwood
Prices in the UK
*When last available Plywood
and MDF in the UK
*When last available including
softwood and panel/sheet materials, is dormant. Exporters in Malaysia
complain that sales to the Dutch market are small. The situation has
worsened during the summer holidays and it is not expected to pick up
until the end of August or early September. For the
time being, exporters are refraining from offering typical Dutch sizes
without request. Exporters are confronted with no immediate requirements
for the main size of 3x5¡± on one hand, and interest for sizes such as
2.1/2x5¡±, 2.1/2x6¡±, 7/4x10¡± and 12¡±, which are not readily
available, on the other. The
economic situation in Holland continues to be problematic. Consumption is
subdued and the building sector in particular is underperforming. However,
despite the low and sluggish demand stocks seem to be coming down
gradually. Some traders report that more end‑users now seem to be
aware of the very difficult supply situation in Malaysia and Indonesia and
of the fact that some items (such as merbau) are in acute shortage. This
awareness, coupled with recent developments in the exchange rate of the
euro, has led to a slight improvement in prices. For S4S‑fingerjoined
material, for instance, some traders report a slight upward trend in
prices free delivered at end‑users¡¯ yard. Although
there were hardly any CNF Rotterdam sales, exporters in Malaysia generally
maintained their prices. Nemesu non-PHND (Pin Holes No Defect) even
enjoyed a hefty price increase. Sawnwood
prices in Holland
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Source:ITTO |
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rights reserved
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