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Central/West Africa: Log market sustained by strong demand from China and India

  • December 28, 2010
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 1110
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The market situation remains unchanged for West and Central African logs as winter arrives earlier in Europe, hampering construction activity. Adverse weather conditions are expected to impact on the economic situation in UK. Portugal and Spain continue to face severe financial difficulties and prospects for the timber based industries in these countries remain dull.

Nevertheless, China and India continue active buying of West and Central African logs. Overall, log traders and exporters have had a relatively good year; with steady market situation and level of prices due to the Gabon log export ban and the log export relaxation by Cameroon and Congo Brazzaville.

Better markets for some processed products
Sawnwood prices, especially for premier species, have made gains through the year, and remained stable in the past month. Currently, sawnwood producers are worried that any over-production could affect prices. According to analysts, producers in the region have to accelerate efforts in achieving full certification for their products, in order to keep market shares in Europe and benefit from the recent greater interest in premier red species of sawnwood from the US market.

Markets for veneer have reportedly improved, but the trade in other value-added products has yet to show any sign of full recovery to pre-recession volumes and diversification. West and Central African manufacturers are slowly re-activating processing facilities, but as the current market is still dull, any increase in production is expected to have an adverse impact on price levels. In addition, as the winter season is slowing down business in Europe, there is little incentive for West and Central African producers to increase production.

Central/West Africa
West Africa logs, FOB € per m³
Asian market
LM
B
BC/C
Acajou/ Khaya/N'Gollon
205
205
153 
Ayous/Obéché/Wawa
200
200
145
Azobe & Ekki
205
205
122
Belli
210
210
-
Bibolo/Dibétou
145
130

Bubinga
670
570
430
Iroko
260
245
190
Okoume (60% CI, 40% CE, 20% CS)
230
-
-
Moabi
280
275
190
Movingui
180
150
140
Niove
145
145
-
Okan
320
320
-
Padouk
375
340
235
Sapele
245
245
170
Sipo/Utile
270
250
200
Tali
275
275
114 


West Africa sawnwood, FOB
€ per m³
Abura
KD
560
Ayous FAS GMS
300
Okoumé FAS GMS
360
FAS. fixed sizes
340
Std/Btr GMS
295
Sipo FAS GMS
470
FAS fixed sizes 320
FAS scantlings
490
Padouk FAS GMS
570
FAS scantlings
585
Strips
360
Sapele FAS Spanish sizes
390
FAS scantlings
460
Iroko FAS GMS
550
Scantlings
560
Strips
360
Khaya FAS GMS
400
FAS fixed
390
Maobi FAS GMS
495
Scantlings
440
Movingui FAS GMS
350
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