The government of the most industrialised State in
Peninsular Malaysia, Selangor, has stopped issuing
licenses for logging on all state land. The State
government met in July this year and issued a ban on
logging on all State land with immediate effect. However,
the ban on logging in mangrove forests will only take
effect at the end of the year.
The Malaysian Federal Constitution mandates that land
and natural resources are matters under the jurisdiction of
the State governments. Logging licenses currently held by
concessionaires will not be renewed. The ban will not
affect clearing on private land such as those owned by
forest plantation owners.
A quota of 1,970 ha. of forests for logging under the
current year was set aside for the State of Selangor by the
National Forestry Council. The quota is the maximum
annual area that a State could allocate for timber
harvesting. According to the Selangor state forestry
department, less than a quarter of the quota has been
utilised to date by concessionaires.
Sarawak plantations
Sarawak is planning to plant one million ha. of forest by
the year 2020 to reduce dependency on logging in its
natural tropical forests.
Sarawak forest department notes that the State had planted
350,000ha. of forest with fast growing species such as
Acacia and Rubber in areas that had been logged and were
denuded. To-date, the State has only harvested 100,000ha.
of its plantation forest.
Acacia was identified a faster growing specie as it could
be harvested within 7 years for the paper and pulp industry
with a yield of 180 cu.m per ha., and within 10 years for
sawnwood and plywood with a yield of 300 cu.m per ha.
Rubberwood fellings delayed
The demand for medical rubber gloves manufactured from
latex from rubber trees continue to push the prices of
rubberwood upwards as older rubber plantations that were
due for felling are being kept for latex production even as
yields decline.
With plantation owners opting to tap the trees for rubber
latex instead of harvesting the wood, traders in
rubberwood believe that this upward trend in rubberwood
prices will continue until early 2010. Stocks of rubberwood that have been languishing in timber
warehouses around the country are now being absorbed by
the furniture industry.
Furniture business recovery
Malaysian furniture manufacturers are now turning their
focus to 2010 for any hope of business recovery. With the
market for electronics beginning to pick up there are
indications that the Japanese and US economies may be
on the mend, albeit slowly.
The Indian market for Malaysian timbers remains soft as
construction work seems to be slowing down in major
cities across India. The hope is that now the monsoon is
over work will resume.
Going into the autumn months in the northern hemisphere
and with the winter months just around the corner, prices
of plywood, sawnwood and other panel-products for
construction purposes are expected to stay depressed or
stagnant.
Malaysia Log Prices Malaysia
Log Prices
Sarawak
log, FOB
US$
per m³
Meranti SQ up
226-250
Small
210-241
Super small
200-224
Keruing SQ up
216-228
Small
190-220
Super small
167-197
Kapur SQ up
206-231
Selangan Batu SQ up
179-216
Pen. Malaysia
logs, domestic (SQ)
US$ per m³
DR Meranti
231-250
Balau
297-326
Merbau
323-355
Rubberwood
50-84 ⇑
Keruing
214-230
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)
435-448
Sepetir Boards
249-271 ⇑
Sesendok 25,50mm
346-364
Kembang Semangkok
294-317
Malaysian
Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
325-345
Merbau
455-507
Kempas 50mmx (75,100 & 125mm)
260-300
Rubberwood
25x75x660mm up
199-249
50-75mm Sq.
240-272
>75mm Sq.
262-291
Malaysia Plywood Prices
Malaysia
ply MR BB/CC, FOB
US$
per m³
2.7mm
406-468
3mm
386-416
9mm & up
332-404
Meranti ply
BB/CC, domestic
US$ per m³
3mm
381-422
12-18mm
315-344
Other
Malaysia Panel Prices
Malaysia,
Other Panels, FOB
US$
per m³
Particleboard Export 12mm & up
226-249
Domestic 12mm & up
211-228
MDF
Export 15-19mm
281-313
Domestic 12-18mm
270-288
Malaysia
Added Value Product Prices
Malaysia,
Mouldings, FOB
US$
per m³
Selagan Batu Decking
531-541
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
546-559
Grade B
499-508
Malaysia
Furniture and Parts Prices
Malaysia,
Rubberwood, FOB
US$ per piece
Semi-finished dining table solid laminated top
2.5'x4', extension leaf
