Producers are reporting some minor price improvements reflecting the generally firmer market condition, largely the result of brisk buying for the Chinese market.
Middle East demand has also improved leading to very active trading. When looking at their order books, producers are fairly confident the firming market conditions will continue well into next year. However, the majority of the price increases have been for the premium species while interest in other timbers has remained dull and unchanged for a long period.
Some West and Central African producers are trying to interest Middle East buyers in „alternative‟ species but with very limited success.
Some gainers and some losers, market preferences shift again
Demand for okoume logs and sawnwood is very firm and order levels are steadily increasing, providing an opportunity for producers to secure better prices. Padouk is again out of favour and prices are weakening.
Sapele and sipo are in constant demand and sawn sapele and sipo can attract firm and stable price levels however, log supplies of these two timbers are barely adequate and some producers have to negotiate extended delivery times.
Analysts point out that supplies of high quality sapele from the Central African Republic have virtually dried up because of ongoing internal problems and difficult border conditions. Buyers in the EU are firmly fixed on the premium species and show no interest at all in other timbers. At present, France is probably the most active European market, otherwise trade is dull and in the UK demand is weak.
Republic of the Congo announces Forestry Declaration
A recent timber „forum‟ in Brazzaville has resulted in a „Declaration‟ that sets out the government‟s policy on developing the forest resource for the benefit of the people. Special mention was made of the need for more jobs to be created in the forestry sector to address youth unemployment in the country. Apart from forest conservation, sustainability and downstream processing there is recognition in the county that more plantations must be established and that further efforts are needed to stamp out illegal logging and trade in illegal timber.
Log Export Prices
West Africa logs, FOB | € per m³ | ||
Asian market |
LM
|
B
|
BC/C
|
Acajou/ Khaya/N'Gollon |
220
|
220▲
|
155 |
Ayous/Obéché/Wawa |
225
|
210
|
150
|
Azobe & Ekki |
230▲
|
230▲
|
155▲
|
Belli |
230
|
230
|
-
|
Bibolo/Dibétou |
155▲
|
140▲
|
|
Iroko |
255
|
225▲
|
220
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 310 ▲ | 310▲ |
240▲
|
Moabi | 300▲ |
290▲
|
- |
Movingui | 220 |
200
|
175
|
Niove |
165
|
165
|
-
|
Okan |
255▼
|
255▼ |
-
|
Padouk |
320
|
280▼ |
230
|
Sapele |
270
|
255
|
180
|
Sipo/Utile |
310
|
285▼
|
190▲
|
Tali |
295
|
295
|
-
|
Sawnwood Export Prices
West Africa sawnwood, FOB |
€ per m³
|
|
Ayous | FAS GMS |
340
|
Bilinga | FAS GMS | 520▲ |
Okoumé | FAS GMS |
480
|
FAS. fixed sizes |
270
|
|
Std/Btr GMS |
350▲
|
|
Sipo | FAS GMS |
550
|
FAS fixed sizes | - | |
FAS scantlings | 560▲ | |
Padouk | FAS GMS |
900▼
|
FAS scantlings | 900 | |
Strips | 400 | |
Sapele | FAS Spanish sizes | 490 |
FAS scantlings |
550▲
|
|
Iroko | FAS GMS | 570 |
Scantlings |
600
|
|
Strips |
445
|
|
Khaya | FAS GMS |
450▲
|
FAS fixed |
470
|
|
Maobi | FAS GMS |
550
|
Scantlings |
550
|
|
Movingui | FAS GMS |
415▲
|