Central/West Africa: Log and sawnwood prices unchanged

Source:
ITTO/Fordaq
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Log and lumber prices in Central West Africa are unchanged and this must be one of the longest periods of stable prices over the past 12 months. Modest purchases of logs for China continue and there is still ongoing business in sawnwood of selected, high value speciality species for the high end market.

Current demand is however, far from the market recovery that producers anticipated late last year but the level of business is sufficient for Central/West African producers to hold prices stable in hope of improved sales volumes in the second half of the year.

There are no signs of an improvement in demand for the Chinese market but neither has there been a sharp decline in orders. Analysts point out that the reality is that while financial markets are unstable the housing and construction sectors in many countries continue to advance.

While the housing market in China remains under pressure homes continue to be built and this drives demand for wood products. The sheer size of the housing market in China and the importance of the construction sector for the economy suggests the current steady demand will continue.

Apart from China the Indian government has ambitious plans for its housing sector which will create opportunities for timber exports. For producers in West and Central Africa the overall market situation has not deteriorated and with firm demand in Europe prices are holding firm.

Accelerating tertiary processing in Gabon

Markets in the Middle East countries continue to be active and very price conscious.

There is a steady demand for the lower grades of sawnwood but good business for high quality panel products and joinery quality and decorative species.

It has been learnt that proposals to accelerate tertiary level processing, kiln drying and eventual manufacture of components and furniture parts are being discussed in Gabon. Also mentioned are ideas on stimulating greater regional trade in wood products.

Such a major step forward in processing could be underpinned by incentives such as tax relief on advanced processing equipment and it would be necessary to raise the level of training to create a more highly skilled workforce. This will take time and but could be implemented in cooperation with industry.

Log Export Prices

West Africa logs, FOB € per m³
Asian market
LM
B
BC/C
Acajou/ Khaya/N’Gollon
230
230
160
Ayous/Obéché/Wawa
260
260
180
Azobe & Ekki
230
230
160
Belli
250
250
Bibolo/Dibétou
150
145
 
Iroko 330
290
260
Okoume (60% CI, 40% CE, 20% CS) (China only) 200 200 160
Moabi 335 305 225
Movingui 210
210
160
Niove
160
160
Okan
250
250
Padouk
310
285
225
Sapele 315 305 220
Sipo/Utile
345
340
265
Tali 320 320

 

Sawnwood Export Prices

West Africa sawnwood, FOB
€ per m³
Ayous FAS GMS 410
Bilinga FAS GMS 500
Okoumé FAS GMS
350
Merchantable 225
Std/Btr GMS 270
Sipo FAS GMS
610
FAS fixed sizes 610
FAS scantlings 640
Padouk FAS GMS 930
FAS scantlings 1020
Strips 680
Sapele FAS Spanish sizes 610
FAS scantlings 620
Iroko FAS GMS 625
Scantlings 700
Strips
440
Khaya FAS GMS
450
FAS fixed
460
Maobi FAS GMS
610
Scantlings
630
Movingui FAS GMS
420
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