Central/West Africa: Producers avoiding stock build-up

Source:
ITTO's Tropical Timber Market Report
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Mills in the region are continuing with their policy of carefully balancing production with demand to avoid an increase in stock levels as there has been no change in the quiet market conditions, say analysts.

It is the opinion of producers that EU importers are generally well stocked and, except for small purchases to fill the gaps in stocks, are content to delay major purchases for the time being.

Buyers in Belgium recently returned to the market with a particular interest in purchases of padouk, the prices of which are tending to rise.

In other market news, there is some positive growth in demand for S2S or S4S sawnwood planed to size. However, demand is at best only moderate in the current slow market conditions in China, India and Europe.

Exporters and importers are looking for signs of impact of the EUTR which came into effect on March 3. Producers continue to express concern that the EUTR gives the impression to consumers that producers could be criminals selling illegal timber unless they can prove otherwise.

Cameroon bans export of boules and ‘clean-sawn’ timber
Unconfirmed reports say that Cameroon has increased the export duty on timber by 4.5% and has banned exports of ‘through and through’ sawn boules and ‘clean sawn’ logs.

Boules and Clean sawn logs are now classified in Cameroon as logs not sawnwood and, as such, fall within the ban on log exports.

Boules, a product particularly suited to high end furniture manufacturers where colour and texture consistence are important, and clean sawn products became popular when log exports were banned.

Port congestion reported in Gabon
Exporters in Gabon are still hampered by port congestion say analysts. Exporters say the capacity and available facilities at the port are inadequate to handle the volume of both outbound and inbound traffic. A project to build more berths is in the pipeline but held up due to problems in securing finance.

Concessions repossessed in Gabon
The Forest Authority in Gabon recently repossessed more than 50 concessions because of either unpaid land taxes, failure on the part of the concession holder to provide the required forest management plan or non-compliance with forest regulations.

In recent years the Forest Authority in Gabon has strictly enforced the requirement for those granted concessions to provide management plans. When a concession holder fails to provide the plan or is found to have breached the terms of the concession agreement or forest regulations the authorities have not hesitated to withdraw the concession.

In Gabon forestry officers are posted at every mill and at prior to shipment all containers are inspected.

Gabon has not yet negotiated a Voluntary Partnership Agreement with the EU so will not be shipping FLEGT licensed timber for some time. However, control of forest operations and industry is very strict and forestry regulations are enforced. In Cameroon also the procedures for concession bidding are transparent and forest law enforcement is very closely controlled.

Rumours circulate that Liberia will strictly enforce log export ban
Trade sources say that Liberia intends to strictly enforce a log export ban but no official confirmation of this can yet be obtained.

After a long period of internal conflict the UN was mandated to assist the government of Liberia and some time ago limited timber exports resumed under tight control.

Log Export Prices

West Africa logs, FOB € per m³
Asian market
LM
B
BC/C
Acajou/ Khaya/N'Gollon
205
205
145
Ayous/Obéché/Wawa
220
205
135
Azobe & Ekki
205
205
135
Belli
210
210
-
Bibolo/Dibétou
145
130
 
Iroko
270
230
220
Okoume (60% CI, 40% CE, 20% CS) (China only)
245
225
200
Moabi
280
280
190
Movingui
185
155
150
Niove
165
165
-
Okan
300
295
-
Padouk
340
320
235
Sapele
270
255
170
Sipo/Utile
320
295
170
Tali
285
285
-


Sawnwood Export Prices

West Africa sawnwood, FOB
€ per m³
Ayous FAS GMS
330
Bilinga FAS GMS 515
Okoumé FAS GMS
470
FAS. fixed sizes
290
Std/Btr GMS
345
Sipo FAS GMS
530
FAS fixed sizes -
FAS scantlings
495
Padouk FAS GMS
800
FAS scantlings
840
Strips
340
Sapele FAS Spanish sizes
480
FAS scantlings
505
Iroko FAS GMS
550
Scantlings
580
Strips
410
Khaya FAS GMS
430
FAS fixed
465
Maobi FAS GMS
550
Scantlings
550
Movingui FAS GMS
400
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