Central/West Africa: Trade startled by Gabon announcement
Dominating the news in the West and Central African
timber trade has been the announcement that Gabon will
ban the export of round logs. The initial news was that the
ban would take effect from January 2010. This
announcement was one of several by the government team
led by the newly-elected President Ali Ben Bongo, who
became Gabon's president last month.
It seems that, so far, no formal gazetting or legislation has
followed. The proposed ban, according to the statement, is
in order to create employment in particular for young
persons and women by ensuring that further processing is
carried out within Gabon.
According to earlier goals, the Government planned to
increase the domestic wood processing rate to 75% in
2012 and only allow 25% of the log harvest to be
exported.
Industry uncertain
At the moment there are no details of any phasing out of log exports and the industry is uncertain what to do about the existing log stocks at the port and in transit. It is also uncertain of what it would do in respect of contracts already signed and for shipping and time charter arrangements. Although Gabon’s log export volumes are much lower than they were some years ago, there are still large volumes sold to China, India and lately to Vietnam, as well as some steady volumes for North Africa.
Consumer countries affected
If the ban was to come into effect in January, these consumer countries would have just one month in which to find alternative log supplies to keep their manufacturing plants operating. Given that there are so few tropical log exporting countries this will not be easy to achieve and log prices will likely rise. At this early stage, while waiting for more detailed information, the market has not reacted. It is reported that some exporters in Gabon have raised their asking prices for okoume sawn lumber, though it is not known if any sales have been made at higher prices.
Major shift in trade pattern
Apart from this major news, there are no reports of price movements for logs or lumber as it will take time for both producer and consumer countries to work out strategies to deal with, what will become, a major shift in trade patterns. This move will result have consequences for shipping and investments in processing in one of West and Central Africa’s major tropical hardwood producing regions.
Central/West Africa
Industry uncertain
At the moment there are no details of any phasing out of log exports and the industry is uncertain what to do about the existing log stocks at the port and in transit. It is also uncertain of what it would do in respect of contracts already signed and for shipping and time charter arrangements. Although Gabon’s log export volumes are much lower than they were some years ago, there are still large volumes sold to China, India and lately to Vietnam, as well as some steady volumes for North Africa.
Consumer countries affected
If the ban was to come into effect in January, these consumer countries would have just one month in which to find alternative log supplies to keep their manufacturing plants operating. Given that there are so few tropical log exporting countries this will not be easy to achieve and log prices will likely rise. At this early stage, while waiting for more detailed information, the market has not reacted. It is reported that some exporters in Gabon have raised their asking prices for okoume sawn lumber, though it is not known if any sales have been made at higher prices.
Major shift in trade pattern
Apart from this major news, there are no reports of price movements for logs or lumber as it will take time for both producer and consumer countries to work out strategies to deal with, what will become, a major shift in trade patterns. This move will result have consequences for shipping and investments in processing in one of West and Central Africa’s major tropical hardwood producing regions.
| West Africa logs, FOB | € per m³ | ||
| Asian market |
LM
|
B
|
BC/C
|
| Acajou/ Khaya/N'Gollon |
205
|
205
|
153
|
| Ayous/Obéché/Wawa |
190
|
190
|
145
|
| Azobe & Ekki |
185
|
185
|
115
|
| Belli |
230
|
230
|
-
|
| Bibolo/Dibétou |
140
|
130
|
|
| Bubinga |
500
|
460
|
390
|
| Iroko |
257
|
250
|
200
|
| Okoume (60% CI, 40% CE, 20% CS) |
190
|
-
|
-
|
| Moabi |
270
|
270
|
206
|
| Movingui |
165
|
135
|
125
|
| Niove |
130
|
130
|
-
|
| Okan |
195
|
195
|
122
|
| Padouk |
310
|
290
|
235
|
| Sapele |
200
|
195
|
150
|
| Sipo/Utile |
260
|
240
|
190
|
| Tali |
230
|
225
|
114
|
| West Africa sawnwood, FOB |
€ per m³
|
|
| Ayous | FAS GMS |
300
|
| Fixed sizes | 396 | |
| Okoumé | FAS GMS |
290
|
| Sel. & Bet. GMS Italy |
215
|
|
| Sel. & Bet. fixed sizes |
290
|
|
| Sipo | FAS GMS |
475
|
| FAS fixed sizes | - |
|
| FAS scantlings |
490
|
|
| Padouk | FAS GMS |
540
|
| FAS scantlings |
555
|
|
| Strips |
355
|
|
| Sapele | FAS Spanish sizes |
390
|
| FAS scantlings |
460
|
|
| Iroko | FAS GMS |
430
|
| Scantlings |
440
|
|
| Strips |
350
|
|
| Khaya | FAS GMS |
380
|
| FAS fixed |
420
|
|
| Maobi | FAS GMS |
440
|
| Scantlings |
455
|
|
| Movingui | FAS GMS |
270
|