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Report
from the UK
Dollar
Exchange Rates of 23th February 2006
EU
0.842
Timber sector sends mixed signals
The UK Forest Products Association reports that trading in the country was good throughout much of 2005, with good quality hardwood selling well. Although, as with other sectors, trade was very slow in the last quarter while the number of hardwood sawmills continued to
decline. Oak continues being popular, although much of it is imported. Fashion has favoured lighter coloured hardwoods for sometime, but there is now evidence that darker coloured hardwoods are becoming more popular. There is a renewed interest in walnut.
The FTSE index reached a four and a half year high during the last week and analysts appear confident that the rise will continue in 2006. The British Banking Association says that mortgage lending has steadied in January with more than 140,000 loans granted. This
confirms the view that the housing market is shrugging off its winter malaise. Persimmon, the UK's largest house builder, has overcome uncertainty among buyers by reporting record profits in 2005. They sold 12,636 houses even though potential buyers showed a lack of
confidence generally. However, another DIY retailer, the "Focus
Group" has reported a significant fall in sales and could be in danger of collapsing.
CPET accepts five certification schemes
The UK's Central Point of Expertise on Timber Procurement (CPET) has so far evaluated five
certification schemes (listed below) as satisfying the requirements for either sustainable and/or legal timber.
*When
last available
Report
from the Netherlands
Modest signs of economic recovery
There seems to be very modest signs that the Dutch economy is recovering. Drastic measures taken during the past two to three years, such as changes in several social aspects, seem to start bearing fruit according to data from the Central Bureau of Statistics (CBS). Unemployment rate remains fairly stable with a slight tendency to decline. There were lesser bankruptcies in 2005 while the productivity index of companies improved. GDP growth picked up from 1.3% in the third quarter to 1.6% in the last quarter of the year. Consumer trust and willingness to spend have improved. Overall, recovery is still brittle but optimism is growing.
There is hope that the positive signs lead to the reactivation of the building and joinery sectors, which still hold significant timber stocks. The government is busy elaborating environmental-compliance plans that can lead to the issuance of more building permits to face housing shortage. Analysts foresee a growth in the amount of households from the current 7.1 million to 8.2 million by 2035.
Sawnwood market sees revived activities
After a long quiet period in the trade of tropical sawn timber, the Dutch market was fairly active in the second half of February. The activity was probably due to some end-users wanting to finish off pending jobs during (school) holidays. Whether the market will continue active will be known in the second half of March.
Brazilian trade limited to landed stocks
Nevertheless, the ¡®price-war¡¯ is still underway with a brisk of sales being undertaken at eroded margins or below cost, while the supply of tropical timber from production areas in Brazil and Malaysia remains extremely tight. Importers from Brazil informed that only
limited volumes continued to be exported in earlier February, basically FSC-certified materials. Trade is restricted to landed stocks as replenishment from forest units is virtually halted. Some importers felt that this situation could linger until August which would result in acute shortages. Production at many Brazilian sawmills is at a forced standstill due to lack of roundwoods.
Pahang suspends log felling and transport
The supply situation in Malaysia remains complex. Monsoon rains turned milder during the first days of the Chinese new-year holiday in earlier February. However, heavy downpours resumed in mid-February, particularly in eastern Peninsular Malaysia. Authorities of Pahang
State informed that felling and transportation of logs have been suspended from February 20 onwards due to bad weather and landslide risks. The suspension is a blow to the precarious log supply as Pahang is important supplier of upper quality grades of dark red meranti.
Many exporters have a small unsold forward position and even for them it is difficult to ensure fresh sawnwood supply as many mills nationwide are deprived of logs. As a result, FOB mill prices are on the rise and exporters are adjusting CNF-Rotterdam quotations. Due to the limited forward position, exporters are dosing their quotations and refraining from spontaneous offers. Some Dutch importers now seem to realize that conditions in Peninsular Malaysia is far from normalising and are trying to book some orders for March/April shipment
before the situation escalates further and prices surge even more. However, popular items for the Dutch market such as 2.1/2x6¡±, 4x5¡±, 7/4x12¡± and several strip sizes
are totally sold out even for later shipments.
Prices
ably be insufficient due to preferential claims (loans, social funds, etc.).
1
ton of 50 Cu.ft. = 1.416 m3; PHND= Pin hole no defect grade.
*Price
also for Keurhout Legal (KH-LET) certified product.
Okoum¨¦ Plywood Prices
KOMO
is a quality standard for the Dutch building sector.¡¡
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