West African exporters report that the traditional EU and US markets are quiet and consequently prices remain largely unchanged for these markets. The availability of logs for processing is of growing concern, especially for the smaller sized milling operators who do not have concessions and have to purchase logs on the open market.
Millers in Cameroon complain that log prices are continually increasing and if this continues analysts fear some smaller companies could go out of business. The availability of azobe logs for domestic processing is
limiting the availability of sawnwood for export, most notably to European markets. However, for almost all other species, log availability is less of a problem and sawnwood output is sufficient to meet the relatively low demand.
The demand for sapele and sipo remains firm and these two timbers seem to be favourites in the market at present. Analysts report firm demand for okoume logs for the Chinese market. This sustained demand is having an impact on prices and further advances in price are likely.
Opening new concessions only way to improve log supply
Log availability throughout West and Central Africa is a major problem and the prospects for an immediate increase in log supplies are limited. Analysts suggest that, in the short term, possibly only Congo Brazzaville could make available new large sized concessions. This seems feasible as the authorities have sound and accurate forest inventories and are encouraging investment in the forestry and wood processing sectors.
The Democratic Republic of Congo has a massive forest resource and is harvesting and exporting logs and there is potential for expanding the forestry sector. However, as in several other countries, the distances from forest or mill to the port are so great that the cost of transport can be prohibitive.
Looking to the future it seems that West African wood product prices will trend higher to more fully reflect the true value of the forest resources. Economic stimulus measures in EU needed to improve market prospects Demand levels in the EU have not changed over the past 2-3 months and it seems that most importers are relatively well stocked and are under no pressure to make additional purchases, despite signs of improvements in the construction and housing markets.
The UK government is offering financial incentives to first time house buyers but this measure will be slow to have an impact on hardwood sales. However, prospects for improvement in the UK housing sector are improving and major house building companies report higher sales of new properties.
Continental European markets remain weak for this time of year when house building should be expanding. Growth forecasts across the eurozone offer little hope of any significant market improvement in the short to medium term.
On a brighter note, producers report that Southern Mediterranean and Middle East buyers are active and that this business shows no signs of slowing. Prospects in these markets in the second quarter appear promising.
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 |
280▲
|
280▲
|
-
|
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 |
350
|
|
Sipo | FAS GMS |
550▲
|
FAS fixed sizes | - | |
FAS scantlings |
490
|
|
Padouk | FAS GMS |
860▲
|
FAS scantlings |
855▲
|
|
Strips |
340
|
|
Sapele | FAS Spanish sizes |
480
|
FAS scantlings |
505
|
|
Iroko | FAS GMS |
580
|
Scantlings |
600▲
|
|
Strips |
440
|
|
Khaya | FAS GMS |
430
|
FAS fixed |
465
|
|
Maobi | FAS GMS |
550
|
Scantlings |
550
|
|
Movingui | FAS GMS |
400
|