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Plywood and Veneer Prices | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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International
Plywood and Veneer Prices Source:ITTO' Tropical Timber Market Report BRAZIL Brazilian plywood faces higher duty
in Mexico Random
Lengths reported that Mexican authorities have raised the import duty on
Brazilian plywood from 12.7% to 22.2% on 8 September 2005. Nevertheless, this duty is 20% below the duties imposed on
countries that are not members of the Latin American Integration Association
(ALADI). Plywood imports from
Indonesia and China, for instance, are subjected to a 27.7% duty. In
contrast, plywood imports from the USA and Chile are duty free. Chile has a special trade agreement with Mexico while the USA
is member of NAFTA. Brazilian manufacturers facing difficulties Although
timber products sales are active, it is increasingly difficult for
companies, based on current US market prices, to meet production costs
without incurring economic losses. The hurricane season in the USA has boost
up demand but yet many Brazilian manufacturers have not been able to secure
working capital to cover production costs. According to experts, the US
dollar may appreciate by December and in the period preceding the 2006
presidential election in Brazil. Meanwhile,
Brazilian manufacturers of wood-based products are facing difficulties to
export and are accumulating economic losses. The strength of the Brazilian
Real (BRL), together with the high cost of some production inputs, has
eroded the competitiveness of some export-oriented Brazilian companies.
Brazilian plywood manufacturers also claim to be affected by import tax
imposed by the USA in July and by the recent doubling of import tariffs by
Mexican customs on Brazilian plywood, from 12.7% to 22.2% (see above). The
volume of tropical plywood exports contracted 24% to 56,600 m3
(down 26.5% to US$28.8 million) in September 2005 compared with the same
month in 2004. Tropical lumber exports fell 10.6% to 135,400 m3
(down 4.5% to US$45.9 million) compared with the same month in 2004.
Furniture exports also declined 3.8% to US$71.7 million in comparison with
September 2004 and 7% in August 2005. However, pine lumber exports surged
14% to 136,500 m3 (up 4% to US$26.2 million) in September 2005
compared with September 2004. Elliotis pine plywood buoyed up by
rising prices Strong
demand in the USA and production cutbacks in Brazil have combined to trim
down the supply of elliotis plywood grades to European markets according to
EUWID. Most Brazilian plymills
have switched their output to the US market grades.
The price of 18mm CDX, highly demanded in the USA, has topped US$340
per m3 FOB, more than US$120 above early September price levels.
As a result, Brazilian producers have substantially increased prices
for shipments to Europe. Most
buyers in Europe are refraining from placing additional orders in spite of
low inventory levels and are sourcing alternative plywood grades from
elsewhere in Europe and from China. Demand for French maritime pine plywood
and Chinese twin grades with a poplar core and pine layers is strengthening. Meanwhile,
Brazilian producers come under financial pressure as the Brazilian real
appreciates against the US dollar. Moreover, heavy rainfall in recent weeks
and crackdown on illegal logging have restricted roundwood supply to
plymills. Chinese plywood gaining ground in the
EU After
establishing foothold in Central European markets, several Chinese
¡°combi¡± plywood grades are gaining interest from importers in Europe,
EUWID reported. This has been particularly the case of buyers looking for
alternatives to Brazilian elliotis pine plywood whose prices have firmed
sharply. Chinese birch film/film and film/mesh was in increased demand,
though buyers still complained about quality. These products have already
substituted several Indonesian plywood grades in Europe. Brazilian
plywood prices have substantially risen due to strong demand in Katrina
affected areas. Importers are doubtful whether Chinese softwood plywood
could be counted under EU duty-free quotas while others believe that import
duty on some Chinese plywood grades could be raised to 7% by the end of the
year. This could narrow the price difference with elliotis pine plywood
which benefits from duty free quotas, thereby waning buyers¡¯ interest on
Chinese plywood substitutes.
MALAYSIA
INDONESIA Indonesian
sellers losing competitiveness Despite being a low-cost producer, prices of Indonesian timber products
have not attained the desired profit margins as sought by Indonesian
sellers. The deteriorating economy has also extracted a toll on its
infrastructure, ports and shipping industry, affecting overall
competitiveness. This situation has caused some foreign buyers to seek other
sources of supply. Some Indonesia plywood traders were hopeful that the post-hurricane
Katrina reconstruction boom would spill over to Indonesia. However, that
anticipated boom has not quite materialized even for the American timber
industry. GHANA
The
above prices are for full sized panels, falling sizes minus 15%. Thickness
below 1mm would attract a 5% premium.
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
Domestic
Plywood and Veneer Prices BRAZIL Plywood
prices increase Prices
for wood products in Brazilian real (BRL) registered 1% increase in
September compared with August 2005. In dollar terms, the variation was
close to 1.9% due to the strengthening of the BRL and higher demand in
different timber segments. Plywood showed the strongest price variation in the period. On average, plywood prices increased 4.3% in BRL and 5.2% in US dollars. The reason for the price increase was the expectation of higher seasonal prices for furniture. As the year ends, furniture wholesalers tend to pile up plywood stocks.
MALAYSIA
PERU
Other
Panel Product Prices BRAZIL
MALAYSIA
PERU
Prices
of Added Value Products MALAYSIA
GHANA
Grade 2 less 5%, Grade 3 less 10%. PERU
BOLIVIA Bolivia leads in certification of
natural tropical forests Out of Bolivia¡¯s
108.7 million ha of land area, around 53 million ha are under forest cover.
Of these, 28.7 million ha are delineated as permanent forest production,
with 8.5 million hectares under sustainable forest management (SFM). The
forests are spread among seven of Bolivia¡¯s nine departments. There are 78
forest concessions, all of which are under SFM. The allocation of new forest
concessions is suspended due to the priority given to farmer and indigenous
communities. In 2004, Bolivia exports of timber and non-timber products
(notably chestnut) amounted to US$140 million. Certified
product exports jump to US$16.5m Bolivia
has been the leader in certified natural tropical forests and was one of the
pioneers in forest certification in the early 1990s. According to the
Consejo Boliviano para la Certificaci¨®n Forestal Voluntaria (CFV), Bolivian
exports of certified forest products have climbed from about US$180,000 in
1998 to US$16.5 million in 2004, and have continued to grow. Certified
forest products account for 15% of Bolivia¡¯s total forest product exports
and 25% of her timber product exports. More than 80% are value‑added
products such as mouldings, doors, chairs, armchairs, tables, furniture
parts and furniture in general, among others. The main markets are the UK,
USA, Germany, the Netherlands, Sweden, with the UK and USA accounting for
85% of the value exported. Over 2.2 million hectares certified On 7
October, Bolivia celebrated the achievement of more than 2.2 million
hectares of certified natural tropical forests, consolidating its position
as the world¡¯s leader. The celebration took place at the Expocruz
Convention Centre in Santa Cruz, Bolivia and was attended by over 700 people
including the President of Bolivia and other government authorities as well
as representatives from international organizations and certification
bodies. A total of 23 certified forest areas are operating in Bolivia,
including the Indigenous Communal Mr. Juan Abuawad of the Bolivian Forestry Chamber, anticipates that Bolivian exports of certified products and area of certified forests will reach US$ 1 billion and 28 million hectares, respectively in less than 10 years, generating more than 200,000 jobs in the short term. | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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Source: ITTO
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