EC and Malaysia in final stages of VPA negotiations May 22, 2009
The EC and Malaysia are entering into the final stages of a
bilateral Voluntary Partnership Agreement (VPA) in the
trade of legally produced and harvested timber, reported
Bernama. Senior trade negotiators will meet in June or
July 2009 to resolve outstanding issues once the technical
aspects of the Agreement are approved by both sides.
According to Vincent Piket, Ambassador and Head of
Delegation of the European Commission in Malaysia,
legal mechanisms were being finalized in the EU to stop
the problem of trade in illegally harvested timber and thus
it was vital the VPA be agreed upon soon. Malaysia
exports up to RM2.8 billion (EUR600 million) worth of
timber products to the EU every year.
PEFC endorses MTCS
On 5 May, the Programme for the Endorsement of
Certification (PEFC) announced that the Malaysian
Timber Certification Scheme (MTCS) had become the
first tropical timber certification scheme in the Asia-
Pacific region to be endorsed by the Programme. The
MTCS, which is operated by the Malaysian Timber
Certification Council (MTCC), is also the only tropical
scheme to be endorsed by the PEFC after the Gabonese
Forest Certification Scheme, reported The Daily Express.
The Chairman of the MTCC, Dato Dr. Freezailah Che
Yeom, said the endorsement allows the MTCS to gain
mutual recognition with 26 other PEFC-related
certification schemes. It also allows MTCS-certified
manufacturers and exporters to combine PEFC-certified
material from Malaysia with other PEFC-certified material
under the PEFC logo.
MTC sees potential in Middle East amid global exports
decline
The Malaysian Timber Council (MTC) continues to
believe the Middle East holds much potential for
Malaysian timber products in spite of the current global
economic slowdown affecting its traditional markets,
reported Bernama. Malaysia exported RM1.7 billion
worth of timber products to the Middle East in 2008, in
which the UAE accounted for RM850 million.
The Star indicated Malaysian exports of all products
continued to fall in March, declining for the sixth month in
a row to RM43.6 billion, a 15.6% drop from the same
period 2008. Exports contracted 20% to RM121.47 billion
and imports declined 28.9% to RM88.8 billion in the first
quarter of 2009. Total trade amounted to RM210.27
billion, marking an overall decline of 24%.
Malaysia Log Prices Malaysia
Log Prices
Sarawak
log, FOB
US$
per m³
Meranti SQ up
229-253 ⇓
Small
211-242 ⇓
Super small
200-224 ⇓
Keruing SQ up
216-228 ⇓
Small
187-218
Super small
162-193
Kapur SQ up
206-231 ⇓
Selangan Batu SQ up
178-215
Pen. Malaysia
logs, domestic (SQ)
US$ per m³
DR Meranti
232-251 ⇓
Balau
298-325 ⇓
Merbau
322-357 ⇓
Rubberwood
42-77 ⇑
Keruing
215-231 ⇓
Peninsular
Malaysian meranti logs are top grade and are used for scantlings for
the EU. Their prices are higher than Sarawaks.
Malaysia
Sawnwood Prices
Malaysia
Sawnwood,
FOB
US$
per m³
White Meranti A & up
280-311 ⇓
Seraya Scantlings (75x125 KD)
450-465⇓
Sepetir Boards
249-271 ⇓
Sesendok 25,50mm
351-369 ⇓
Kembang Semangkok
294-317 ⇓
Malaysian
Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
331-351 ⇓
Merbau
474-525⇓
Kempas 50mmx (75,100 & 125mm)
260-300 ⇓
Rubberwood
25x75x660mm up
196-246 ⇑
50-75mm Sq.
237-269 ⇑
>75mm Sq.
259-288 ⇑
Malaysia Plywood Prices
Malaysia
ply MR BB/CC, FOB
US$
per m³
2.7mm
415-477
3mm
392-422
9mm & up
337-409
Meranti ply
BB/CC, domestic
US$ per m³
3mm
388-429
12-18mm
322-351
Other
Malaysia Panel Prices
Malaysia,
Other Panels, FOB
US$
per m³
Particleboard Export 12mm & up
229-252
Domestic 12mm & up
214-231
MDF
Export 15-19mm
284-316
Domestic 12-18mm
273-291
Malaysia
Added Value Product Prices
Malaysia,
Mouldings, FOB
US$
per m³
Selagan Batu Decking
547-557
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
563-576
Grade B
514-523
Malaysia
Furniture and Parts Prices
Malaysia,
Rubberwood, FOB
US$ per piece
Semi-finished dining table solid laminated top
2.5'x4', extension leaf
