The Ambassador and Head of the EU mission commented that, apart from a few technical issues that needed to be resolved, he wass hopeful that VPA will be concluded between June and July 2010. If that is the case, Malaysia will be the first country in Asia to conclude the agreement. It will also provide Malaysian timber products with smoother access to the EU market.
Timber export recovery
Malaysia is expecting commodity exports, particularly exports of timber products, to recover in line with the economic recovery in both the EU and the US. Exports of Malaysian commodities declined from RM112 billion in 2008 to only RM90 billion in 2009 due to the global economy slowdown. Demand for Malaysian timber fell from RM22.8 billion in 2008 to RM19.8 billion in 2009.
Exporters cautious
Malaysian timber exporters are closely watching developments in the EU and US markets. Currently economic recovery in the two main markets is considered weak and may not be sustained. With the US dollar weakening against the Malaysian ringgit, timber exporters will face a tough time in the US market if they cannot trim prices. In addition, because of the advantageous exchange rate of the Chinese renminbi against the US dollar, competition from Chinese manufacturers, especially of furniture, will continue to be fierce.
New Year slow down
Prices of Malaysian timber products remain relatively stable as most businesses wind down for the annual Chinese Lunar New Year holidays. Price increases for sawn rubberwood lead the charge as there has been less felling of rubberwood trees because prices of natural latex rubber continues to climb upwards.
The sharp rise in prices for natural rubber and palm oil could lead to a sharp drop in the supply of rubberwood logs and oil palm fibres. A prolonged shortage of rubberwood logs may take root and this could impact the local furniture and panelproducts industry after the Chinese New Year holiday.
Malaysia Log Prices
Sarawak log, FOB | US$ per m³ |
Meranti SQ up | 227-251 |
Small
|
211-242 |
Super small
|
202-226 |
Keruing SQ up | 216-228 |
Small
|
194-224 |
Super small
|
172-202 |
Kapur SQ up | 206-231 |
Selangan Batu SQ up | 183-220 |
Pen. Malaysia logs, domestic (SQ) | US$ per m³ |
DR Meranti | 233-252 |
Balau | 298-327 |
Merbau | 323-355 |
Rubberwood | 59-93 ⇑ |
Keruing | 216-232 |
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 |
281-311
|
|
Seraya Scantlings (75x125 KD) |
433-446 ⇑
|
|
Sepetir Boards |
250-272
|
|
Sesendok 25,50mm |
345-363
|
|
Kembang Semangkok |
295-318 ⇑
|
|
Malaysian Sawnwood, domestic |
US$ per m³
|
|
Balau (25&50mm,100mm+) |
325-345
|
|
Merbau |
452-504
|
|
Kempas 50mmx (75,100 & 125mm) |
260-300
|
|
Rubberwood | 25x75x660mm up |
207-257 ⇑
|
50-75mm Sq. |
246-278 ⇑
|
|
>75mm Sq. |
268-297 ⇑
|
Malaysia Plywood Prices
Malaysia ply MR BB/CC, FOB | US$ per m³ |
2.7mm |
404-466
|
3mm |
384-414
|
9mm & up |
330-402
|
Meranti ply BB/CC, domestic | US$ per m³ |
3mm
|
329-420
|
12-18mm
|
313-342
|
Other Malaysia Panel Prices
Malaysia, Other Panels, FOB | US$ per m³ |
Particleboard Export 12mm & up |
226-249
|
Domestic 12mm & up
|
212-229
|
MDF Export 15-19mm |
279-310
|
Domestic 12-18mm
|
270-288
|
Malaysia Added Value Product Prices
Malaysia, Mouldings, FOB | US$ per m³ |
Selagan Batu Decking |
530-540 ⇑
|
Red Meranti Mouldings 11x68/92mm x 7ft up | |
Grade A
|
545-558 ⇑
|
Grade B
|
498-507 ⇑
|
Malaysia Furniture and Parts Prices
Malaysia, Rubberwood, FOB | US$ per piece | |
Semi-finished dining table solid laminated top 2.5'x4', extension leaf |
62-87 ⇑
|
|
As above, Oak Veneer |
69-83 ⇑
|
|
Windsor Chair |
61-63 ⇑
|
|
Colonial Chair |
59-64 ⇑
|
|
Queen Anne Chair (soft seat) | without arm |
59-67 ⇑
|
with arm |
59-68 ⇑
|
|
Chair Seat 27x430x500mm |
47-52 ⇑
|
|
Rubberwood Tabletop | US$ per m³ | |
22x760x1220mm sanded & edge profiled | ||
Top Grade
|
568-601 ⇑ | |
Standard
|
552-571 ⇑ |