Malaysia: Decline in timber business expected after Chinese New Year February 04, 2009
Malaysian prices continued to decline as the global
economic slowdown continued. BTimes indicated that the
price decline was further aggravated by the worst slump in
US lumber prices in almost 18 years and shares of
Malaysian timber companies were equally negatively
affected. However, the full impact of the drop in prices
was paused due to the closure of businesses during the
annual Chinese Lunar New Year celebrations.
Nevertheless, the decline in prices is expected to persist
after the New Year festivities.
Low growth of GDP anticipated in 2009
Analysts expected Malaysia’s GDP growth to be between
1.1% and 2.2% in 2009 as the national economy contracts,
reported Bernama News. Unemployment is expected to hit
4.7% and market conditions continue to be bleak. The
Malaysian Ringitt fell for the third week in the wake of
speculations that the central bank will cut interest rates to
stimulate economic growth and aid local exporters.
DRC cancelled contracts could provide Malaysia with
opportunity
The Independent reported on traders’ hopes that Malaysian
sawnwood suppliers can fill the void created by the
cancelled contracts in the Democratic Republic of Congo
(see West/Central Africa section). However, the EU, one
of the major destinations for timber from the DRC may
prove to be elusive for Malaysian timber suppliers as EU
shares fell to a six-year low, according to The Guardian.
Economic data indicated the UK economy went into
recession at the end of 2008 and contracted 1.5% in the
fourth quarter of 2008.
Government decides to reduce export of natural rubber
Btimes reported on Malaysia’s decision to reduce the
export of natural rubber by 5% to 57,050 tons in year
2009. As a result of this measure, more rubber plantations
can be replanted or converted into alternative commercial
projects. This would mean that more rubberwood would
be available as raw material, thus reducing pressure on
rubberwood prices.
Malaysia Log Prices Malaysia
Log Prices
Sarawak
log, FOB
US$
per m³
Meranti SQ up
231-255 ⇓
Small
211-242 ⇓
Super small
199-224 ⇓
Keruing SQ up
218-230 ⇓
Small
187-218 ⇓
Super small
161-192⇓
Kapur SQ up
208-233 ⇓
Selangan Batu SQ up
178-215
Pen. Malaysia
logs, domestic (SQ)
US$ per m³
DR Meranti
234-253 ⇓
Balau
302-327 ⇑
Merbau
332-367 ⇓
Rubberwood
41-77 ⇓
Keruing
217-233⇓
Peninsular
Malaysian meranti logs are top grade and are used for scantlings for
the EU. Their prices are higher than Sarawaks.
Malaysia
Sawnwood Prices
Malaysia
Sawnwood,
FOB
US$
per m³
White Meranti A & up
284-315 ⇓
Seraya Scantlings (75x125 KD)
465-480⇓
Sepetir Boards
252-274 ⇓
Sesendok 25,50mm
361-379 ⇓
Kembang Semangkok
296-319 ⇓
Malaysian
Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
341-361 ⇓
Merbau
492-544⇓
Kempas 50mmx (75,100 & 125mm)
266-306 ⇓
Rubberwood
25x75x660mm up
195-245 ⇓
50-75mm Sq.
237-269 ⇓
>75mm Sq.
259-286 ⇓
Malaysia Plywood Prices
Malaysia
ply MR BB/CC, FOB
US$
per m³
2.7mm
423-485 ⇓
3mm
396-426 ⇓
9mm & up
341-413 ⇓
Meranti ply
BB/CC, domestic
US$ per m³
3mm
392-433 ⇓
12-18mm
326-355 ⇓
Other
Malaysia Panel Prices
Malaysia,
Other Panels, FOB
US$
per m³
Particleboard Export 12mm & up
231-254 ⇓
Domestic 12mm & up
216-233 ⇓
MDF
Export 15-19mm
286-318 ⇓
Domestic 12-18mm
275-293 ⇓
Malaysia
Added Value Product Prices
Malaysia,
Mouldings, FOB
US$
per m³
Selagan Batu Decking
563-573 ⇓
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
579-592 ⇓
Grade B
530-539 ⇓
Malaysia
Furniture and Parts Prices
Malaysia,
Rubberwood, FOB
US$ per piece
Semi-finished dining table solid laminated top
2.5'x4', extension leaf
