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International Log
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International
Log Prices ITTO' Tropical Timber Market Report MALAYSIA
The
log supply situation in Peninsular Malaysia continues to be critical. In
addition to drastic price increases for certain species, there is a
reported general shortage of log supply. The mills specializing in
processing mixed hardwoods have been the most seriously affected. Even the
pallet manufacturers are reported to have difficulty in securing log
supply. FRANCOPHONE
WEST AFRICA Sluggish
market due to summer holidays Markets
are reported to be very dull for West African producers both in Asia and
Europe. Most log prices have
remained unchanged through August with only one or two minor adjustments
for BC/C grade due to active buying from China which is the main market
for lower grades. Sapele is
still facing problems with a very heavy downward price pressure, though
the recent substantial oversupply situation is now less evident. However,
stocks are still high in relation to the current very low demand due to
the, now ending, summer holiday in Europe. This
situation is common with other major species: normal stock levels but low
demand. The current shorter lead‑time from purchase to delivery
(only 4‑5 weeks) for European buyers also causes buyers to wait
until the last minute before committing to replenish their stocks. Demand
for ayous logs is good but prices for lower grades continue to decline.
Prices for fromager logs are stable helped by good Chinese demand. Chinese
demand for padouk BC/C has waned recently. In contrast, prices for okoume
are very firm and there is added production from Congo Brazzaville. Hopes
for firmer prices In
spite of the present poor demand and slow market conditions, West African
producers hope that in the long term, log prices will resume the steady
rising trend. One reason is the increased tax burden faced by West African
producers as their governments strive to extract higher revenue from the
forestry sector.
Timber
trade may perk up slightly through September. Although construction levels
in mainland Europe are not very active, the demand for housing is firm.
Unfortunately, building costs are high and this makes houses too expensive
for many first‑time and younger buyers, so the market overall tends
to stall. MYANMAR
Hoppus
ton = 1.8 m3 Prices
for above listed grades of Myanmar teak logs showed mixed trends in June
and July. Mills
assimilating 16% log price increase Foreign
investment helps shift to value adding Foreign
investment, mainly from China, Taiwan P.O.C. and Thailand, is helping a
partial shift in Myanmar to value‑added products. There is increased
lamination and finger-jointing of teak in response to a general decline in
log availability and quality, while more garden furniture is now being
manufactured in the country. PAPUA
NEW GUINEA Log
exports declined in July Log
exports declined to 121,005 m3 in July 2005, from 207,021 m3
the previous month. The total FOB value was US$ 6.9m (Kina 20.3m), for
which Kina 5.6m was paid in export log taxes. For the year up to July,
exports logs reached 1,231,288 m3, worth US$73.9m. PNG
log exports in 2005
In
plantation species, Kamarere remains the main export species, primarily to
the markets of Japan, Vietnam and Korea. FOB prices for several diameters
of this species were in the range of US$37-70 per m3.
Terminalia sp. and teak were other plantation species exported during the
period.
In
order to prevent the proliferation of pests and diseases that are
potentially harmful to forest health, Brazil adopted a new legislation on
wood transportation. The new legislation imposes a number of restrictions
and measures to lumber companies and forest producers, including the
requirement of the Phytosanitary Certificate of Origin (CFO) for log
transportation. The
certificate will only be valid if signed by a trained forest engineer or
agronomist accredited by the Ministry of Agriculture. The presentation of
the CFO will be compulsory at state borders where it will be retained for
control and substituted with a transit document. The CFO will be valid for
transportation for up to 30 days. The State of Rio Grande do Sul and the
neighboring State of Santa Catarina are the first to adopt the
certificate. Its adoption will involve adjustments to the states¡¯
transport logistics. PENINSULAR
MALAYSIA
GHANA
International
Sawnwood Prices FRANCOPHONE
WEST AFRICA No
changes in most sawnwood prices were observed for most products in August,
except iroko and sipo. Producers are expecting changes in buying patterns
when Indian buyers begin larger purchases of sawnwood. As has been
regularly reported in the MIS Report
over the past couple of years, China continues buying larger volumes of
sawn lumber and in a wider range of species. In
the meantime, as with the log market, current trade is very slow,
especially for Europe where in general, building and construction
industries are less active due to the holiday period and slow consumption
particularly in the key German market.
BRAZIL Sawnwood
exports fell in July According
to the Ministry of Development, Industry and Commerce,
Brazilian exports of solid wood products, especially lumber and plywood,
have fallen consecutively in volume during the past few months. Exports
of tropical sawnwood fell 32% from 179,600 m³ in July 2004 to 122,700
m³ in July 2005. Pine sawnwood exports fell over 17% from 148,600 m³
(US$ 28.2m) to 122,900 m³ (US$24.2m) in the same period. The
reduction in exports has been a result mainly of the weak US dollar and
stiff competition from other producers.
MALAYSIA
INDONESIA Prices
for Indonesian timber products are not available. The MIS is currently
looking for a new source of price data from that country. GHANA Increased
timber exports in 2005 According
to the Timber Industry Development Division (TIDD) of the Forestry
Commission, export of wood products reached Euro 106.4m (271,000 m3)
in the first seven months of 2005. This corresponds to 9.7% and 4.2%
increments in volume and value, respectively, compared with the same
period last year. Ghana¡¯s
timber exports Jan-Jul 2005
Of
this total, secondary process products (furniture parts, mouldings,
parquet, etc.) accounted for Euro 14.4m, down 11% from last year, while
primary products (lumber, veneer, plywood, etc.) accounted for Euro 92m, up
14% from 2004. KD lumber (26%) and AD lumber (27%) accounted for 53% of
the total export volume for the period in 2005. Compared to the same
period in 2004, these products registered volume increases of 5.8% and
45%, and value increases of 12.5% and 53%, respectively. Veneer
export volume was 61,973 m3 in 2005, up over 7% from 2004. In
contrast, plywood exports decreased from 45,956 m3 in 2004 to
31,777 m3 in 2005, equivalent to a 21.5% drop in revenue. The
decline in exports of secondary processed wood products was mainly due to
reductions in the exports of mouldings and furniture parts. Main
trading partners The
EU remains Ghana¡¯s major trading partner, accounting for Euro 58.3m
(122,000 m3) over the January‑July 2005 period. This
trade is equivalent to 55% in value and 45% in volume of Ghana¡¯s wood
exports during the period. Key markets include Italy, France, Germany, the
UK, Belgium, Spain, Ireland and Holland. The
USA accounted for 15% of the total export value in Jan-Jul 2005,
comparable to the same period in 2004. This market has maintained its
dominance as the most lucrative destination for Ghana¡¯s plywood, lumber
(KD) and rotary veneer exports. The ECOWAS countries (Senegal, Nigeria
Gambia, Burkina Faso, Sierra Leone and Togo) accounted for 65% of
Africa¡¯s Euro 10.2m wood imports from Ghana during the period under
review. Plywood and AD lumber continue to draw interest in the Senegalese
and Nigerian markets. Asian
and Far East countries (India,
Malaysia, Taiwan, China, Singapore, Thailand and the Philippines)
accounted for Euro 16.8m (15.8%) of the total value of wood exports in
Jan-Jul 2005. India remains the leading importer of Ghana¡¯s teak AD
lumber. Middle East countries (Saudi
Arabia, Lebanon, United Arab Emirate and Israel) accounted for Euro 3.8m
(3.6%) of the total export value in the period.
PERU Prices
up for mahogany, cabreuva sawnwood As
a consequence of the inclusion of mahogany (Swietenia
macrophylla) in Appendix II of CITES and supply shortages, prices for
mahogany continue to increase. Prices
for mahogany sawnwood (length 6+ feet) for the US market have reached
US$1,620 per m3. The volume of mahogany sawnwood exports is
strictly controlled by INRENA, which enforces the export annual quota of
23,621 m3 for 2005. The
USA continues to absorbe most of the Peruvian sawnwood mahogany (Swietenia
macrophylla,
over 90% of exports). Exports to the Central
American market are rapidly declining with only 4 companies exporting to
Dominican Republic and Puerto Rico. Some analysts indicate that the
Central American market is no longer attractive and that future exports of
sawnwood mahogany will probably be limited to shorter sizes while
commercial sizes will be destined to the USA. Cabreuva
sawnwood (Myroxylon balsamum,
known also as estoraque or santos mahogany) for the Chinese market reached
US$1,380 per m3. The price increase was due to high demand in
the Chinese market. Peruvian exporters expect further increases for
cabreuva¡¯s and, particularly, mahogany¡¯s prices by the end of the
year.
Domestic
Sawnwood Prices BRAZIL
MALAYSIA
GHANA
PERU
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Source:ITTO'
Tropical Timber Market Report
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