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International
Plywood and Veneer Prices
BRAZIL
Katrina¡¯s
impact will be short lived
Hurricane Katrina has created strong expectations in the wood-producing
segment in Brazil, as many of the affected areas will be rebuilt and the
wood products demand will steadily rise. Wood products prices have been
increasing since the hurricane hit the USA in late August. Wood panel prices
increased over 30% and lumber prices surged an estimated 12%. A price
increase would normally bring a positive result for the main companies of
the sector. However this has not been the case as many have to bear
additional transportation costs as a result of increased fuel prices.
Marketing specialists, including Standard & Poor¡¯s (S&P),
believe the price surge will be short‑lived. The markets are volatile
and this condition may be temporary, lasting during the period of house
reconstruction. Decreasing housing starts, greater supply from timber
salvaging in the US Gulf and rising production and capacity will levelled
off demand. In Brazil, meanwhile, Klabin and Duratex, two major wood
producers, may benefit from the hurricane destruction in the medium and long
term. Is spite of the industrial wood segment not being the main focus of
companies such as Klabin, and the fact that freight costs are much higher,
the price increase may bring benefit to some companies through impacts on
marginal operational gains.
Project
of Law on SFM
The
Project of Law that regulates the administration of public forests for
sustainable management was approved without amendments by the Senate. The
Project creates the Brazilian Forest Service (BFS) and the National Forest
Development Fund (NFDF). Both measures will promote the sustainable
utilization of forests and will help fight illegal logging and land grabbing
in the Amazonian region.
During
the approval session, the Senate agreed to postpone the discussion of some
amendments proposed. The proposed amendments include increasing to seven the
number of ministries participating in the NFDF Council and procedures for
evaluating forest concession requests above 2,500 ha.
Solid
wood sector faces pressing problems
The
chairpersons of industrial federations of eight Brazilian States located in
the Amazon region (Acre, Amap¨¢, Maranhão, Mato Grosso, Par¨¢, Rondônia,
Roraima and Tocantins) met recently with the Government¡¯s Chief of Staff,
Mrs. Dilma Rousseff to report problems facing the forest sector. National
authorities were warned again about a possible economic crisis in the forest
sector. Industrial forest production in some areas has been paralyzed and
the unemployment rate has grown.
The
main constraints for the sector lie in the flow of wooden raw materials for
industrial production. Companies have received licenses for transportation
of forest products (ATFP), but no authorization for raw material processing
has been issued and no management plans have been inspected or approved.
Around 30% for the forest companies have closed and this number is expected
to climb to 70% by year end.
The
negative impacts are felt in the unemployment rate and the trade balance.
IBAMA (The Brazilian Environmental Agency) points out that the reason for
unemployment is related to illegal work practices carried out by some
companies of the sector. As a result of forest inspections, many companies
were forced to halt their planned operations. Currently, solid wood
companies in the region generate 20,000 direct jobs and 130,000 indirect
jobs. Prior to Operation Curupira on addressing illegal logging last June,
the number of direct jobs were 30,000.
Furniture
cluster to boost production in Acre
Aiming
at an increase of 30% in furniture sales of some companies by 2007, a new
furniture cluster was created in the State of Acre. It is equipped with
specialized machinery, stoves for painting and drying kilns. The cluster
comprises 12 firms and a furniture cooperative with 17 micro entrepreneurs
as members.
For
the establishment of the lumber and furniture cluster, each company received
an area of 1,200 m2 to accommodate industrial sheds of 500 m2.
Each shed is coupled to an integrated system designed to collect wood
residues as raw material for the generation of energy to be used in the
drying kilns. PROCOMPI (the Support Program for Competitive Micro and
Small-sized Business) is in charge of training personnel in all phases of
the productive chain to strengthen technology.
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Veneer FOB
(Belem/Paranagua Ports)
White Virola Face 2.5mm
Pine Veneer (C/D)
|
US$ per m3
240
140
|
|
Plywood FOB
White Virola (US Market)
5.2mm OV2 (MR)
15mm BB/CC (MR)
White Virola (Caribbean
market)
4mm BB/CC (MR)
12mm BB/CC (MR)
|
US$ per m3
390
350
480
380
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Pine EU market
9mm C/CC
(WBP)
15mm C/CC
(WBP)
18mm C/CC
(WBP)
|
US$ per m3
270
260
255
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Northern
Brazil¡¯s wood companies poised to benefit from PIEX
The Exports Incentive Project (PIEX) of SENAI (National Industry Service)
will benefit around 200 solid wood companies in Northern Brazil by the end
of the year. PIEX is a consultancy service aimed at strengthening the
companies¡¯ sales staff both domestically and abroad.
The Project has a budget of BRL 800,000 and will be implemented in a
12‑month period. Training courses will be given to workers of selected
companies including technical assistance for product development and sales
both locally and abroad. SENAI¡¯s main requirements for companies in the
program are interest in foreign markets and a minimum infrastructure.
Wood
corridor planned for Port of Paranagu¨¢
The so-called Wood Corridor is planned for the Port of Paranagu¨¢ with
the installation of two warehouses of 30,000 m2 with a storage
capacity of 300,000 m³. The operation involves a storage infrastructure
near 100 km inland (Ponta Grossa region, a strategic location for solid wood
product exports) to work as an online yard linked to the port terminal.
The objectives of the Wood Corridor are to lower operation costs, speed
up cargo flows and improve the competitiveness of the port terminal and the
State of Paran¨¢¡¯s solid wood segment, and to attract more
ship‑owners interested in doing business in Paranagu¨¢. With this
structure, wood cargoes from all over the State will be stored in the Ponta
Grossa region and will be shipped according to a pre‑scheduled
planning. Representatives of the Ports of Paranagu¨¢ and Antonina (both in
the State of Paran¨¢) indicated that the purpose of the proposal was to
attract cargoes with destination to foreign markets, to the ports of the
State of Paran¨¢. The Wood Corridor is planned to be operational by the end
of this year.
MALAYSIA
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MR
Grade BB/CC FOB
2.7mm
3mm
9mm
& up
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US$
per m3
415-425
380-390
325-335
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INDONESIA
Indonesia
gains market share in Germany
In contrast to other markets where Indonesia¡¯s share has fallen, the
German market is increasing the intake of Indonesian tropical plywood.
Imports from Indonesia climbed 44% from 20,672 m3 in the first
half of 2004 to 29,769 m3 in the same period of 2005. Indonesia
is by far Germany¡¯s largest supplier of tropical plywood, accounting for
48% (42% in 2004) of overall imports in 2005. Spain follows in second place
with 13,039 m3 (8,430m3 in 2004) and a market share of
21% in 2005 (17% in 2004).
GHANA
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Rotary Veneer
|
Euro per m3
|
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Bombax
Chenchen
Kyere
Ofram
Ogea
Otie
Ceiba
Mahogany
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CORE (1-1.9mm)
325
325
325
325
325
325
270
425
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FACE (Below 2mm)
360
360
360
360
360
360
300
460
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The above prices are for full sized panels, falling
sizes minus 15%. Thickness below 1mm would attract a 5% premium.
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Rotary Veneer
Core Grade 2mm and up
Ceiba
Chenchen,Ogea
& Essa
Ofram
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US$ per m3
235
295
305
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Sliced Veneer
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Euro per m2
|
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Afromosia
Asanfina
Avodire
Chenchen
Mahogany
Makore
Odum
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Face
1.19
1.25
0.92
0.72
1.03
1.01
1.54
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Backing
1.00
0.80
0.60
0.50
0.70
0.60
0.95
|
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Plywood, FOB
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Euro per m3
|
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Thickness
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Redwoods
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Light Woods
|
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B/BB
4mm
6mm
9mm
12mm
15mm
18mm
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WBP
560
340
315
300
310
300
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MR
460
310
290
280
285
275
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WBP
500
335
290
270
280
245
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MR
330
270
255
235
245
235
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Grade
AB/BB would attract a premium of 5%. BB/BB would be 5% less, C/CC 10% less
and CC/CC 15% less.
PERU
|
FOB for Mexican Market
Copaiba, 2 faces sanded,
B/C, 15x4x8mm
Virola, 2 faces sanded,
B/C, 5.24x8mm
Lupuna, treated, 2 faces
sanded
5.2x4x8mm
Lupuna plywood
B/C 15x4x8mm
B/C 9x4x8mm
B/C 12x4x8mm
C/C 4x8x4mm
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US$ per m3
360-370
405-413
350-360
330-338
345-350
335-340
365-370
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Veneer FOB
Lupuna 3/Btr 2.5mm
Lupuna 2/Btr 4.2mm
Lupuna 3/Btr 1.5mm
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US$ per m3
210-215
220-235
235-240
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Domestic
Plywood and Veneer Prices
BRAZIL
|
Rotary Cut Veneer
(ex-mill Northern Mill)
White Virola Face
White Virola Core
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US$ per m3
190
159
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Plywood
(ex-mill Southern Mill)
Grade MR (B/BB)
White Virola 4mm
White Virola 15mm
|
US$ per m3
617
456
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MALAYSIA
|
Meranti grade BB/CC Dom.
3mm
12-18mm
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US$ per m3
385-395
315-325
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PERU
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Lupuna Plywood BB/CC
(Pucallpa mills)
122 x 244 x 4mm
122 x 244 x 6mm
122 x 244 x 8mm
122 x 244 x 10mm
122 x 244 x 12mm
122 x 244 x 15mm
122 x 244 x 18mm
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US$ per m3
439
430
417
404
410
406
468
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Other
Panel Product Prices
BRAZIL
|
FOB Belem/Paranagua Port
Export
Prices
Blockboard
Pine 18mm 5 ply (B/C)
Domestic
Prices
Ex-mill Southern Region
Blockboard
White Virola Faced 15mm
Particleboard (ex-mill)
15mm
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US$ per m3
360
420
246
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MALAYSIA
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Malaysia, other Panels
Particleboard
Export 12mm & up
Domestic 12mm & up
MDF
Export 15-19mm
Domestic 12-18mm
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US$ per m3
120-130
120-135
210-215
195-200
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PERU
|
Peru, Domestic Particleboard
1.83m x 2.44m x 4mm
1.83m x 2.44m x 6mm
1.83m x 2.44m x 8mm
1.83m x 2.44m x 9mm
1.83m x 2.44m x 12mm
|
US$ per m3
279
235
209
217
200
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Prices of Added Value Products
MALAYSIA
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Mouldings, FOB
Selagan Batu Decking
Red Meranti Mouldings
11x68/92mm x 7ft up
Grade
A
Grade
B
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US$ per m3
605-615
650-665
555-560
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GHANA
|
Parquet Flooring 1st grade, FOB
10x60x300mm
Apa
Odum
Hyedua
Afromosia
10x65-75mm
Apa
Odum
Hyedua
Afromosia
14x70mm
Apa
Odum
Hyedua
Afromosia
|
Euro per m2
12.0
7.8
13.67
13.72
14.47
10.18
18.22
13.93
17.00
11.00
17.82
17.82
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Grade 2 less 5%, Grade 3 less 10%.
PERU
|
Strips for parquet
Cabreuva/estoraque
KD 12% S4S
Asian market
Cumaru KD, S4S
Swedish market
Asian market
Cumaru decking, AD, S4S E4S
US market
Pumaquiro KD # 1, C&B
Mexican market
Quinilla KD, S4S 2x10x62cm
Asian market
|
US$ per m3
1320-1380
610-625
570-590
750-800
465-480
570-580
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