Exporters in Myanmar report that the Indian market can
absorb a wide range of grade of teak logs, even the lower
grades for its local consumption as well as for export. At
present, say local analysts, it is only the India market that
is active for teak.
The trade is saying that that a full recovery in the teak
market could be expected by mid-2010, but this is a very
difficult situation to assess and predict. Teak used to be the
darling export commodity for Myanmar during the past
decade, but this is no longer so.
Statistical update
The following table shows the shipment data from April
2009 to October 2009. Indications are that shipments of
logs are on the rise. Other hardwood shipments peaked in
July and August and declined slightly in September and
October. The shipment of rough-sawn timber, and other
processed wood products are, by contrast, not very
promising.
Myanmar exportsMyanmar exports
Month
Teak
logs
HW
logs
Sawn
Teak
Sawn
HW
Others
(SPWP)
Apr
2435
29347
236
74
328
May
2877
61567
332
81
333
Jun
8645
57442
549
125
374
July
12403
73688
661
105
1032
Aug
15145
86206
945
339
1736
Sept
16138
65682
871
289
2085
Oct
16178
69531
228
201
1143
Total tons
73821
443463
3822
1214
7031
Other than teak
Hardwood logs notably Pyinkado are still actively
purchased by buyers in Vietnam and India, but current
purchases are low compared to previous years. Gurjan logs
are also shipped out in considerably quantities. It could be
said that the trade of hardwood logs (that is other than
teak) is quite active compared to the trade levels in logs in
other exporting countries. There is talk that MTE (Myanmar Timber Enterprise) may
scale down the extraction of teak in the coming year. It
appears that more emphasis is now given to the
reforestation, especially the establishment of plantations.
Mangroves
The domestic press in Myanmar is reporting that
according to a FREDA official, a network of 17 local
NGO’s has been formed to implement the replanting of
existing tidal forests in the country. FREDA (Forest
Resources & Environment Development Association) is a
local NGO formed by retired senior foresters and forestry
experts. The project will apparently extend along a 2500
km stretch of coastline starting from the Naaf River in the
Rakhine State in the west of Myanmar, to the Myeik
(Mergui) Archipelago in the south-east.
The project will begin with an initial funding of
US$500,000. Mangrove plantations will be established in
the Ayeyarwady delta that was hit by the Nargis Cyclone
in May 2008, as first priority.
Myanmar Myanmar Log Prices (natural forests)
Teak Logs, FOB
€ Avg per Hoppus Ton
(traded volume)
Veneer Quality
Sep
Oct
2nd Quality
-
-
3rd Quality
3,513
(5 tons)
4th Quality
3,463
(11 tons)
3,188
(21 tons)
Sawing Quality
Sep
Oct
Grade 1 (SG-1)
2,482
(36 tons)
2,231
(38 tons)
Grade 2 (SG-2)
1,984
(41 tons)
1,910
(36 tons)
Grade 3 (SG-3)
-
-
Grade 4 (SG-4)
1,813
(208 tons)
1,380
(209 tons)
Grade 5 (SG-5) Assorted
1,583
(178 tons)
1,482
(126 tons)
Grade 6 (SG-6) Domestic
1,253
(58 tons)
1,257
(85 tons)
Grade 7 (ER-1)
999
(86 tons)
985
(89 tons)
Grade 8 (ER-2)
-
-
Hoppus ton=1.8m³; All grades, except
SG-3/5/6, are length 8' x girth 5' &up. SG-3/4/6
are girth 4' &up. SG-3 grade is higher than SG-4 but with lower
girth and price.
