Malaysian construction sector suffers continuing slump June 13, 2009
Demand for construction materials in Malaysia continued
to decline, pushing down prices for construction materials.
Steel, a competitor with timber products, was expected to
further drop 25% in price in 2009. The trends, reported by
the Malaysian Iron & Steel Industry Federation in The
Star, showed declines in production of 10.7% to 7.8
million tons in 2008. Domestic prices of steel bars had
tumbled from RM3,800 per ton in July 2008 to RM2,000
in recent weeks.
MFPC Chair calls for new marketing strategies
As reported in the Business Times, Chairman of the
Malaysian Furniture Promotional Council (MFPC) Mr.
Merlyn Kasimir encouraged Malaysian furniture
manufacturers to enhance new marketing strategies to
reposition themselves globally while achieving higher
productivity and maintaining lower production costs.
In 2008, exports of Malaysian furniture grew by 2% and
were worth RM8.72 billion, while imports of furniture
grew 9.8% and valued at RM1.5 billion. However, trade in
Malaysian furniture exports declined by 14.2% in January
2009 and 13.8% in February 2009. On an annual basis,
Malaysian furniture exports were worth about 2.5% of the
world furniture trade.
Sarawak scales back timber quota rate
According to Bernama News, Sarawak scaled back the
enforcement of its rules on the timber quota rate for the
first six months of 2009 to help timber exporters weather
the global recession. The standard royalty rate for timber
has already been reduced from RM65 to RM50 per meter
from January to December 2009. The payment period for
timber royalties has also been extended from two weeks to
three months.
Exports of timber products from Sarawak declined about
30% to RM1.3 billion in the first quarter of 2009,
compared to RM1.9 billion in the first quarter of 2008.
The volume of timber products also dropped 34% during
the same period. Royalties from timber products plunged
by about 39% to RM82.6 million in the first quarter of
2009, compared to RM134.9 million in the first quarter of
2008.
In 2008, the Sarawak timber industry registered a 2.6%
rise in export revenues worth RM7.9 billion compared to
RM7.7 billion in 2007.
Malaysia Log Prices Malaysia
Log Prices
Sarawak
log, FOB
US$
per m³
Meranti SQ up
228-252 ⇓
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
320-353 ⇓
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)
448-463⇓
Sepetir Boards
249-271
Sesendok 25,50mm
350-368 ⇓
Kembang Semangkok
294-317
Malaysian
Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
330-350 ⇓
Merbau
472-523⇓
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
414-476 ⇓
3mm
391-421 ⇓
9mm & up
336-408 ⇓
Meranti ply
BB/CC, domestic
US$ per m³
3mm
387-428 ⇓
12-18mm
321-350 ⇓
Other
Malaysia Panel Prices
Malaysia,
Other Panels, FOB
US$
per m³
Particleboard Export 12mm & up
228-251 ⇓
Domestic 12mm & up
213-230 ⇓
MDF
Export 15-19mm
283-315 ⇓
Domestic 12-18mm
272-290 ⇓
Malaysia
Added Value Product Prices
Malaysia,
Mouldings, FOB
US$
per m³
Selagan Batu Decking
543-553 ⇓
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
559-572 ⇓
Grade B
510-519 ⇓
Malaysia
Furniture and Parts Prices
Malaysia,
Rubberwood, FOB
US$ per piece
Semi-finished dining table solid laminated top
2.5'x4', extension leaf
