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
|