Peru – US sign FTA

On 16 January 2009, Peru signed a Free Trade Agreement (FTA) with the US, reported various news sources. The agreement, which will take effect from 1 February 2009, opened possibilities for Peru’s intellectual property arrangements, said Peru’s Minister of Tourism and Foreign Commerce, Mercedes Araoz. Some also expected the agreement to reflect improved environmental standards. However, the BBC reported that the agreement had been criticized for putting the Amazon rainforest at risk and had not strengthened labor rights.

Sales of Peruvian wood products fall in China
Mauro Rios Torres, a forest expert in Peru, warned that China’s wood intermediaries were being increasingly indecisive about buying more wood from Peru. There was significant overstocking in the Asian market, since wood products from China’s markets were being redirected for internal consumption instead of being sold to key exporters, the US and EU. He said Chinese buyers were not purchasing hardwoods or flooring from Pucallpa and Puerto Maldonado producers, with as many as twenty producers in these areas losing sales to China. Producers from the regions were mainly shipping small volumes of products to the Chinese market. Since last September, wood prices had fallen, with China reducing its demand by more than 50% for wood flooring. The US had stopped importing sawnwood made from mahogany and Spanish cedar, as well as other furniture and manufactured products. The effects were particularly being felt in Lima and Pucallpa.

Peru

Peru Sawnwood Prices
Peru Sawnwood, FOB Callao Port	US$ per m³
Mahogany S&B KD 16%, 1-2'' random lengths (US market)	1823-1866
Spanish Cedar KD select
North American market	939-967
Mexican market	943-970
Pumaquiro 25-50mm AD Mexican market	490-525
Virola 1-2" thick, length 6'-8' KD
Grade 1, Mexican market	321-368
Grade 2, Mexican market	283-309
Cumaru 4" thick, 6'-11' length KD
Central American market	809-836
Asian market	778-797
Ishpingo (oak) 2" thick, 6'-8' length
Spanish market	550-585
Dominican Republic	565-575
Marupa (simarouba) 1", 6-11 length Asian market	395-420

Peru Sawnwood, FOB Iquitos	US$ per m³
Spanish Cedar AD Select Mexican market	934-951
Virola 1-2" thick, length 6'-13' KD
Grade 1, Mexican market	317-342
Grade 2, Mexican market	280-296
Grade 3, Mexican market	159-173
Marupa (simarouba) 1", 6-13 length KD
Grade 1, Mexican market	238-249

Peru sawnwood, domestic	US$ per m³
Mahogany	1145-1210 ⇓
Virola	68-80
Spanish Cedar	386-411 ⇓
Marupa (simarouba)	94-115 ⇓

Peru Veneer Prices
Veneer FOB	US$ per m³
Lupuna 3/Btr 2.5mm	215-219 ⇓
Lupuna 2/Btr 4.2mm	220-250
Lupuna 3/Btr 1.5mm	245-255

Peru Plywood Prices
Peru plywood, FOB (Mexican Market)	US$ per m³
Copaiba, 2 faces sanded, B/C, 15 x 4 x 8mm	322-356 ⇓
Virola, 2 faces sanded, B/C, 5.2 x 4 x 8mm	412-421
Cedar fissilis, 2 faces sanded 4 x 8 x 5.5mm	745-755
Lupuna, treated, 2 faces sanded, 5.2 x 4 x 8mm	355-368 ⇓
Lupuna plywood B/C 15 x 4 x 8mm	350-358
B/C 9 x 4 x 8mm	345-350
B/C 12 x 4 x 8mm	350-360
B/C 8 x 4 x 15mm	420-430
C/C 4 x 8 x 4mm	380-388
Lupuna plywood B/C 8 x 4 x 4mm Central Am.	368-388 ⇓

Lupuna Plywood, BB/CC, domestic	US$ per m³
(Iquitos mills)
122 x 244 x 4mm	426
122 x 244 x 6mm	397
122 x 244 x 8mm	403
122 x 244 x 12mm	398
(Pucallpa mills)
122 x 244 x 4mm	450
122 x 244 x 6m	439
122 x 244 x 8mm	427
122 x 244 x 12mm	419

Other Peru Panel Prices
Peru, Domestic Particleboard	US$ per m³
1.83m x 2.44m x 4mm	277
1.83m x 2.44m x 6mm	230
1.83m x 2.44m x 12mm	198

Peru Added Value Product Prices
Peru, strips for parquet	US$ per m³
Cabreuva/estoraque KD12% S4S, Asian Market	1390-1445 ⇓
Cumaru KD, S4S Swedish market	680-728 ⇓
Asian market	980-1085 ⇓
Cumaru decking, AD, S4S, E4S, US market	910-969 ⇓
Pumaquiro KD #1, C&B, Mexican market	455-496 ⇓
Quinila KD, S4S 2 x 10 x 62cm, Asian market	556-602 ⇓
2 x 13 x 75cm, Asian market	712-736

Peru – US sign FTA

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