International Plywood and Veneer Prices 

16-31th Januray 2006

1. 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.    

Added Value Product Prices

Grade 2 less 5%, Grade 3 less 10%.

2. MALAYSIA  

3. Indonesia 

4. BRAZIL 

Prices of pine plywood may rebound in spring
The 8% tariff imposed by the USA on pine plywood together with the unfavourable exchange rate for exports have resulted in a drastic reduction of profits for Brazilian plywood companies since July 2005. Following the sharp surge of prices to $355 per m3 in late September after hurricane Katrina hit the US coast, prices declined to $198 per m3 (pine plywood 15mm) in late 2005 due to delays in reconstruction efforts, the arrival of the winter and added supply from the Northern hemisphere.

Prices of pine plywood are expected to increase from spring on, when reconstruction efforts resume. However, estimates of the length of the reconstruction period indicate a delay of up to five years. Moreover, the extent of the competition from North American suppliers remains to be seen. 

Brazilian plywood accounts for about 40% of the plywood sales used in civil construction in US East Coast. The USA remains the main destination of Brazilian exports of processed timber, accounting for about 50% of the total USD 3.9 billion exported in 2004. 

Firms try to mitigate US plywood tariffs
Some Brazilian plywood companies have adopted measures to mitigate the effect of the US tariff on pine plywood. Guararapes, a company located in Southern Brazil, has invested in new machinery to increase the productivity of its production lines. The company expects plywood demand to rise 6% in 2006, in contrast to an average 3% in the last few years. The company has also boosted its representation in the USA to lobby for the reversal of the US tariff. 

  Domestic prices include taxes and may be subject to discounts.

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