Producers report that, while overall demand from European buyers remains subdued, in recent weeks there has been renewed interest in sawn iroko and other sawn hardwoods such that prices have firmed for a few species. As anticipated, demand for sapele has increased and prices are beginning to move higher.
Padouk, is in favour again and prices have firmed significantly. Padouk sawnwood, when freshly cut, is a very bright red but over time when exposed to sunlight the colour changes to a warm brown. Padouks can be confused with rosewoods to which they are related but, as a general rul,e padouk is coarser and has a less decorative figure. Indian buyers are now more active than in past months and this is helping to keep prices stable.
Log exporters anticipate renewed interest from China
Log export prices are largely unchanged even though availability is an issue. If, as expected, buyers for the Chinese market become more active in the next month or two there will be some upward pressure on prices because of a limited supply of logs. Any increase in demand for okoume logs will have an impact on prices as supply is now much tighter than in recent years. Okoume suppliers in Congo Brazzaville have logs but an export quota system is strictly enforced so the volumes available are limited.
SMEs struggle with EUTR documentation
European buyers are carefully watching the implementation of the EUTR and exporters are struggling to provide EU importers with sufficient documentation on their supply chain detailing every movement of logs from forest to mill and from mill to port. Meeting importers documentation requirements is a heavy burden on small size exporters as they have difficulty in setting up in-company tracking procedures to satisfy importers.
Export prospects encouraging
Millers report they are keeping production in line with current order levels but are encouraged by the rising number of firm enquiries that are circulating. Despite the increase in enquiries, producers are not increasing output preferring instead to hold output at modest levels to ensure price stability.
Log Export Prices
West Africa logs, FOB | € per m³ | ||
Asian market |
LM
|
B
|
BC/C
|
Acajou/ Khaya/N'Gollon |
215▲
|
215▲
|
155▲
|
Ayous/Obéché/Wawa |
215▼
|
210▲
|
150▲
|
Azobe & Ekki |
205
|
205
|
130▼
|
Belli |
220▲
|
220▲
|
-
|
Bibolo/Dibétou |
145
|
130
|
|
Iroko |
270
|
220▼
|
215▼
|
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
|
300▲
|
-
|
Padouk |
340
|
320
|
235
|
Sapele |
270
|
255
|
175▲
|
Sipo/Utile |
320
|
290▼
|
175▲
|
Tali |
275▼
|
275▼
|
-
|
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 |
545▼
|
FAS fixed sizes | - | |
FAS scantlings |
490▼
|
|
Padouk | FAS GMS |
850▼
|
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
|