Central/West Africa: Optimism for stable markets into third quarter

Source:
ITTO's Tropical Timber Market Report
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Producers and exporters in W. Africa report being satisfied with current levels of business and are optimistic of continued market stability through into the third quarter even though markets in Europe are still very subdued.

EUTR less onerous than some CoC procedures
While meeting the requirements of the EUTR continues to be a major challenge for importers in Europe, some UK traders are saying that the EUTR is less onerous than Chain of Custody (C0C) procedures that have been in operation for some time. Importers are also saying that, while the EUTR provides for prosecution of wrong doers, in a court of law hard evidence will be required for a successful prosecution. Anyone making a claim against an importer would have to provide sufficient, precise and verifiable evidence.

Firm demand but this not translating into better pries
Producers say business with China has picked up after the quiet spell a month ago. Demand for logs, especially okoume, is higher and there is firm demand for sapele and sipo sawnwood. This increased demand from buyers in China has not yet produced any price movements and there are even some reports of UK importers seeking lower prices for sapele sawnwood.

Competitive pricing the key to success in Mid-east and N. African markets
Okoume sawnwood is now well established in the Middle East markets. Demand is growing quickly which is a challenge for producers who say okoume logs are now more difficult to source than in the past.
Overall, demand in Middle Eastern and North African markets is increasing and West and Central African exporters are confident of steady trade and stable prices in these markets.

Although prices tend to be very competitive in these markets, the quality requirements are easier than those demanded by European importers however, producers are willing to accept lower prices because the quality requirements mean higher recovery and less waste from the log. India importers are also active in the market for a limited range of species and prices have held onto recent gains. Analysts suggest that prices will show a steady or slightly firmer trend through the next quarter.

Reports of tight supply situation for Azobe
The shortage of azobe logs and sawnwood seems likely to continue for the time being. Throughout the producer countries the supply of logs in the most popular species is becoming more difficult.
Gabon producers point out they feel restricted by the 30 year cutting cycle which, unless concessions are very large, results in lower annual harvests and consequent higher harvesting unit costs.


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
480
FAS. fixed sizes
290
Std/Btr GMS
340
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
430
Khaya FAS GMS
430
FAS fixed
465
Maobi FAS GMS
550
Scantlings
550
Movingui FAS GMS
400
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