Malaysia progresses with VPA

Source:
ITTO's Tropical Timber Market Report
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The advisor to the Malaysian Ministry of Plantation, Industries and Commodities said that progress has been made in the negotiation between the European Union (EU) and Malaysia concerning the Voluntary Partnership Agreement (VPA). The advisor added that further consultation between the various stakeholders in the country needed to be held before the agreement is concluded.

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
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


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