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
|