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International Log & Sawnwood Prices
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Slowdown in Asian and Middle East markets Milling operations and the import of spare parts are running without disruptions and there are sufficient log stocks, mainly in Okoume, to meet current demand. Mid-August holidays coincided with independence celebrations along with presidential and community elections in Gabon. Containers are readily available and stuffing operations are running smoothly but rail transport is slow because priority is given to manganese exports, however, this has not created delays at the ports. The authorities in Gabon are strictly enforcing truck weight limits which have meant a change in trucking of the heavy species. Producers in Gabon say order levels are about normal but the slowdown in Asian and Middle East markets is noticeable. Mills depend on log stocks during rain season Port operations at Douala port are said to be running normally but there are reports of issues because of expansion work at the Kribi Deep Seaport. Order books good for the next two months in Congo Congo is in a dry period at present which favours harvesting. However, heavy rains in the north have caused delays in production and have disrupted transportation especially on the laterite roads. Transport by rail is generally good with logs are being transported to Pointe Noire first by river to Brazzaville and then by rail to Pointe Noire. Operations in Pointe Noire are said to be normal and shipments are getting away on time. Export market snapshot Demand in the Philippines has softened with buyers focusing on high quality timbers from mills providing quality sawnwood. Okoume purchases in the Middle East are showing signs of a slowdown but analysts say landed stocks are adequate for now. Demand in Europe is said to be stable with an encouraging and consistent demand for moabi and douka for the door and furniture industries. Passenger services remain suspended on Transgabonais railway Electronic VAT invoicing planned in Gabon
2. GHANA Exports to ECOWAS countries fall For the same period in 2022 total wood products totalled Total air-dried sawnwood exports up to April 2023 were During the period under consideration nine ECOWAS In spite of the weak export performance the overall
Countries that contributed to the higher AUP in early 2023 France was the major importer of Ghana’s air-dried boules Ghana parliament passes Wildlife Resources The WRM Bill seeks to revise and consolidate all laws The Bill gives legal backing to local communities in In a statement published on the Ministry’s website the Government extended its appreciation and commendation to all its stakeholders and key actors for their inputs and support throughout the review process and final passage of the Bill into a new legislation. See: https://mlnr.gov.gh/index.php/wildlife-resources-management-bill-2022-passed/ Minister inaugurates 10-member COP 28 committee In his address the Minister said the government has assumed a leading role in discussions on climate change and there are expectations for the country to contribute immensely to the policy ideas and initiatives on the climate at COP28. The Chairman of the committee, Hon. Benito Owusu-Bio, who is also the Deputy Minister for MLNR welcomed the challenge and assured that the committee will deliver professionally. He also promised to provide the necessary leadership for Ghana to have a successful participation and to highlight the importance of COP28 for Ghana’s climate action plans. Ghana became the second African country after Mozambique to receive payments for reducing emissions from deforestation and forest degradation (carbon credits) from a World Bank trust fund. World Bank ‘tree crop’ support The funding is expected to enable the Tree Crops Development Authority (TCDA)
to undertake research and development of different varieties of tree crops
including rubber.
3. MALAYSIA
4.
INDONESIA August export benchmark
prices The new HPE are for veneers packing boxes, wood in
chips or particles and sawn timber with a cross-sectional area of 1,000 sq.
mm to 4,000 sq. mm of merbau and teak. The following is a list of Timber HPE for August
2023 Processed wood which is leveled on all four sides
so that the surface becomes even and smooth from Merbau wood (Intsia sp)
with a cross-sectional area of more than 4,000 sq.mm to 10,000 sq.mm
(ex.4407.29.91 and ex.4407.29.92) US$1,500/cu.m. See:
https://forestinsights.id/harga-patokan-ekspor-hpe-kayu-bulan-agustus-beberapa-jenis-produk-naik/ Acacia dominated log production in 2022 The total volume of acacia production was 49% of
the total national log production or 31.54 million cubic metres. Second was
mixed tropical hardwood at 26.10 million cubic metres (40% of total
production). The others were meranti, ebony and other types of wood
contributing less than 10% of national log production. The BPS also stated that log production is
distributed across all islands in Indonesia. The island of Sumatra recorded
the largest log production at 43.5 million cubic metres, or 67% of total log
production, followed by Kalimantan which contributed 17% of log production.
Production in Java was just over 18 million cubic metres or around 15% of
national production. Indonesia, Malaysia, EU task force on
deforestation regulation meets for first time The co-chairs underscored their aim is to seek
common interests between producers and consumers of plantation. The Ad Hoc
JTF will establish a dialogue and relevant work streams led by the
respective governments to build mutual understanding on the implementation
of the regulation. The meeting also agreed to the terms of reference
for the Ad Hoc JTF which includes work on issues such as inclusivity of
smallholders in the supply chain, relevant national certification schemes
(land legality and cut-off date for deforestation), traceability from
producer to end-consumer, scientific data on deforestation and forest
degradation and protection of data. The Ad Hoc JTF will conclude its work by
the end of 2024, its term could be extended upon mutual agreement. and Minister - Concerns on EUDR country risk
categorisation Indonesia has conducted efforts to oppose the EUDR
mainly through multilateral forums in WTO Committees such as the Committee
on Agriculture, Council for Trade in Goods, Committee on Market Access and
Committee on Trade on Environment. See:
https://www.kompas.id/baca/ekonomi/2023/08/01/eudr-dinilai-hambat-perdagangan Small-holder union to help farmers comply with
EU deforestation law Mansuetus Alsy Hanu, Secretary-General of SKPS said
that the launch of the foundation was timely as oil palm smallholders need
support to cultivate their crops while protecting forests. Smallholders have
expressed concern that they will be unable to meet the requirements of the
newly introduced EUDR which requires farmers to provide evidence that their
crop was not grown on recentlt deforested land. The foundation will provide both monetary and
non-monetary support to farmers including how to follow deforestation-free
and sustainable best practices. These include establishing traceability of
products, recognition of customary forests and the processing and marketing
of non-timber forest products. Minister of Trade meets the EU-ABC delegation The Minister also held discussions with the
delegation regarding trade policies such as exports and imports, electronic
commerce (e-commerce) and international trade. In addition, the development of the ongoing
Indonesia-EU CEPA (European Union Comprehensive Economic Partnership
Agreement) negotiations was also discussed. See:
https://www.kemendag.go.id/berita/foto/mendag-ri-menerima-kunjungan-delegasi-eu-abc and Indonesia and UK strengthen collaboration The meeting addressed issues related to trade in
agricultural commodities between Indonesia and the UK, small farmers and
certification, trade commitments in the agricultural sector and climate
change issues. Hartarto said it is important for the UK to
understand and fully acknowledge national sustainability standards to create
conditions for improved market access for sustainably produced products in
the UK. He also emphasised Indonesia's various commitments in trading
agricultural commodities and addressing climate change, including the
country's efforts towards sustainable plantation. The cooperation between the two countries in
legally and sustainably managing timber and wood products is demonstrated by
the Forest Law Enforcement, Governance and Trade - Voluntary Partnership
Agreement (FLEGT - VPA) which has been in effect since December 2018. Agreement on carbon trading "This provides the legal basis for the exchange and
use of carbon trading data through the National Registry System for Climate
Change”. Siregar noted this is an important step and will lead to other
collaborations in the field of human resources (HR), information exchange,
promotion, outreach and roadshows throughout the country and overseas to
inform the public and the market of the existence of Indonesia’s carbon
stock exchange. In a written statement the Canadian Minister
congratulated Indonesia for starting to implement Carbon Economic Values.
Furthermore, Guilbeault offered cooperation in the exchange of information
and knowledge in the application of carbon emission trading and carbon
economic values. Indonesia also received appreciation from the
United Nations Environment Programme (UNEP). This appreciation was provided
at a bilateral meeting between Minister Siti and the UNEP Executive
Director, Inger Andersen. Andersen said UNEP especially appreciates
Indonesia's leadership in dealing with environmental issues related to
deforestation, lake management, reducing mercury through the Minamata
Convention and handling plastic waste. Sanctions on exporters violating foreign
exchange regulations If Bank Indonesia finds exporters are violating the
export earnings regulation then it will send notices to the Directorate
General of Customs which will impose administrative sanctions on the
exporters. The sanctions will take the form of export services suspension. Importance of down-streaming in boosting the
economy He added that Indonesia would be able to become a
developed country by fulfilling two conditions: optimising its demographic
bonus to develop human resource quality and implementing the downstream
policy in various industries. The government has been down-streaming nickel
which has resulted in an increase in the employment rate in Southeast
Sulawesi and North Maluku.
5.
MYANMAR
New Myanmar currency note Weakening Kyat a challenge in loan repayment The ruling State Administration Council and the
cooperative societies are reportedly having difficulty in repaying this
dollar denominated loan as the dollar exchange rate jumped to 3,400 Kyats
against the dollar. The US dollar exchange rate was around 1,000 Kyat when
the Cooperative Ministry borrowed this US$400 million. UOB cuts ties with counterpart banks in Myanmar It is reported that UOB indicated to the banks in
Myanmar that it would restrict all incoming and outgoing payments to and
from Myanmar accounts allowing funds to be moved only between accounts held
with the bank. UOB also announced tough new curbs on Visa card and
Mastercard transactions for Myanmar individuals and banks which would
restrict their dealings only to accounts within UOB. The new UOB framework will reportedly begin 1
September this year. Financial sector commentators are bracing for similar
action by two of Singapore's other big banks , OCBC and DBS. See:
https://asia.nikkei.com/Spotlight/Myanmar-Crisis/Key-Singapore-bank-UOB-moves-to-cut-off-Myanmar Extension of State Emergency The military administration has already extended the
state of emergency three times, each for six months, with the latest
extension marking the fourth. The military drafted constitution allows only
two six-month extensions and it requires the authorities to hold elections
within six months of a state of emergency being lifted.
6.
INDIA Obituary Ramkrisna was once Chairman of the Plywood and
Allied Products Panel of Chemicals and Allied Products Export Promotion
Council and Vice-Chairman of Capexil for the Western Region. He was also President of All India Timber Importers
Association, Committee Member of the Timber Development Association of
India, the All India Wood Products Exporters Association, Member of the
Indian Society of Foresters, Indian Academy of Wood Science and the Bombay
Timber Merchants Association. He was an active member of the Teaknet
steering committee and of the ITTO Trade Advisory Group. The Teaknet website has an extended obituary at:
7.
VIETNAM
Wood and wood product (W&WP) trade highlights The WP exports contributed US$4.9 billion, down 30%
year-on-year. Pine imports in June 2023 reached 69,000 cu.m, worth
US$15.4 million, up 1.5% in volume and 11% in value compared to May 2023.
Compared to June 2022 pine imports decreased by 35% in volume and 49% in
value. In the first 6 months of 2023, pine imports amounted to 279,400 cu.m,
worth US$61.1 million, down 44% in volume and 57% in value over the same
period in 2022. Vietnam's exports of rattan, bamboo and other
non-wood forest products (NTFPs) in June 2023 recorded the highest level
over the past 1 year, reaching US$68,135 million, up 10% compared to May
2023 and up 9.5% compared to June 2022. After 9 consecutive months of
decline this is the first month that the NTFP exports increased
year-on-year. Over the first 6 months of 2023 Vietnam's NTFP exports
totalled US358 million, down 25% over the same period in 2022. Export orders tilt higher as buying for year end
begins The Department of Forestry reported that forestry
product exports amounted to an estimated US$6.42 billion in the first six
months of the year, a 29% year-on-year decrease with wood and wood product
exports dropping by 29% to US$5.96 billion. A preliminary survey by the Handicraft and Wood
Industry Association of Ho Chi Minh (HCM) City (HAWA) found that export
orders fell by around 30% at the start of the year but began to recover in
July ahead of the global market year-end furniture shopping season. Speaking at the Vietnam Wood and Furniture Industry
Forum held by HAWA in HCM City, Phạm Phú Ngọc Trai, chairman of Global
Integration Business Consultants, said the current reduction in export
orders is temporary and the furniture industry has considerable growth
potential for the next five to ten years. Compared to global GDP that
forecast growth of 3% this year the world furniture industry's compounded
growth rate is expected to be 4.5%. According to Statista Market Insights the world
furniture market may reach US$766 billion in 2023 and is estimated to hit
approximately US$932 billion by 2027. Vietnam ranks among the world's five largest wooden
furniture exporters underlining its solid internal resources. Nguyễn Quốc Khanh, Chairman of HAWA shared a similar
view stating that woodworking firms showcased their business integration
initiative. During market downturns, businesses remained proactive by
reorganising production and streamlining operations to reduce costs while
also seeking support from trade promotion agencies to explore new markets. Khanh pointed out a new trend in the woodworking
industry, where significant furniture brands from Vietnam are expanding into
promising export markets, notably super-rich countries in the Middle East
such as Saudi Arabia and Dubai with an eye on supplying products to new
up-market real estate projects. With the industry's internal strength and the return
of orders the industry's export target for 2023 is considered attainable,
said Khanh. Experts at the forum emphasised the importance of
businesses strengthening their internal resources to be prepared for orders
to rebound in a recovering market and embrace green transformation to
improve competitiveness. Trai said Vietnamese businesses will face new
demands such as the EU's Carbon Border Adjustment Mechanism (CBAM),
effective from October 2023. Goods imported into the European market may
incur additional costs if they fail to adopt a lower-emission production
model and earn carbon credits. See:
https://www.csis.org/analysis/analyzing-european-unions-carbon-border-adjustment-mechanism Planted forests Phạm Thị Ngọc Thủy, Director of the Private Economic
Development Research Board, pointed out that challenges related to the
European Union Timber Regulation (EUTR) and net-zero goal will push
Vietnam's wood and forest product processing industry in a more positive
direction, encouraging further outreach and attracting foreign investment. See:
https://vietnamnet.vn/en/wooden-products-begin-to-get-export-orders-again-after-lull-2172636.html Wood industry will struggle to achieve export
target In the first 6 months of 2023 exports of wood and
wood products reached US$6.1 billion, down 28% over the same period in 2022.
In which, the export of wood products reached US$4.1 billion, down 32% over
the same period in 2022. The recent global economic recession lead to a
plummeting of orders. As a result Vietnam's exports of wood and wood
products to major markets in the first half of 2023 dropped sharply. Exports to the US accounted for 54% of the total
export value of wood and wood products, reaching US$3.3 billion, down 33%
compared to the same period in 2022. The sharp decline of orders from the US makes the
target of US$18 billion sales in 2023 unachievable. According to the Import-Export Department recovery
of the timber industries will depend on many factors including the stability
of the global economy, especially the key export markets for wood and wood
products such as USA and EU and with promoting export support measures and
exploiting market expansion opportunities. Speaking at a meeting Mr. Ngo Sy Hoai, Vice
President and Secretary General of the Vietnam Timber and Forest Products
Association (VIFORES) said the wood industry in recent years has recorded
high achievements and made a breakthrough to become one of the world's major
exporters and wood processing centres. However, in the first half of 2023
exports of wood products dropped sharply. The decline in exports of wood and wood products
resulted from a steep drop in demand in some main markets such as the US due
to a drop in consumer purchasing power. In addition the wood industry has
faced anti-dumping and anti-subsidy investigations since 2020 but, up to
now, after seven reviews the US Department of Commerce has not yet issued a
final decision. However, according to Mr. Ngo Sy Hoai, the current
difficulties are only temporary and global demand for wood products is still
growing so there opportunities. To limit the decline and maintain growth targets Mr.
Ngo Sy Hoai suggested solutions are needed for Vietnamese products to have
global brand recognition. Vietnam has signed many FTAs such as VPA/FLEGT
Agreement, also known as the Voluntary Partnership Agreement between the
European Union and Vietnam on forest law enforcement, forest governance and
trade in forest products. Also, Vietnam entered into a bilateral agreement
with the United States to address the complete removal of illegally
harvested timber from the supply chain. At the same time it is effectively
implementing the EU regulatioms. A representative of the Vietnam Timber and Forest
Products Association said that, at the national level, the solutions mainly
focus on improving the business environment and enhancing the
competitiveness of enterprises but more solutions are needed for Vietnamese
wood to build their brand name in the global market. The Vietnamese Government, businesses and the people
of Vietnam have shaken hands to promote green growth and green development,
contribute to the formation of a responsible wood industry and contribute to
a reduction of global deforestation. According to Mr. Ngo Sy Hoai, because of the order
shortage many businesses have reduced the workforce and cut working hours so
as to maintain a minimal level of production to wait for demand to recover. With positive demand signals in the US market
businesses must be well prepared to ramp up production.
8. BRAZIL Timber sector in the
spotlight in southern Brazil The Union of Timber, Sawmills, Carpentry, Framing,
Joinery, Furniture, Plywood and Veneer, Particleboard and Wood Fiber Sheets
Industries SINDIMADEIRA – RS in the State of Rio Grande do Sul has
highlighted the economic and social benefits the timber industry brings to
the region, adding that it is crucial to find a balance between economic
development and promoting sustainable practices to ensure the long-term
preservation of natural forests. The timber sector can attract investments, new
businesses and boost research and innovation in the area, benefiting the
local economy, workers and entrepreneurs involved. See:
https://www.sindimadeirars.com.br/noticias_int.php?id=2834 Operations to combat environmental crimes in the
Amazon This initiative includes the mobilisation of
security agents in strategic operations on waterways, on land and in the
air. This is part of the operations called the "Curupira" and "Amazônia
Viva". In addition, there has been investment in equipping
of the Public Security River Group (Grupamento Fluvial de Segurança Pública
- Gflu) linked to the Secretariat of Public Security and Social Defense (Secretaria
de Segurança Pública e Defesa Social - Segup) with the installation of the
Integrated Public Security River Base "Antônio Lemos" in the Marajó island
aimed at reducing deforestation and environmental crimes in the State. Since the beginning of the operations, there have
been significant seizures of timber, weapons and machinery and a
strengthening of the commitment of the government of Pará to reduce
deforestation and, above all, to advance in the preservation of the
environment. Global teak study Producers from about 80 countries that trade teak
are participating in the study which is supported by the Food and
Agriculture Organization of the United Nations (FAO) and the International
Union of Forest Research Organizations (IUFRO) through its Special Programme
for Capacity Development (IUFRO-SPDC). In Brazil, the coordination is under the
responsibility of EMBRAPA Florestas (Brazilian Agricultural Research
Corporation). The objective is to compile national level data without
disclosing specific information on public entities or private companies. The
study is a continuation of work carried out by FAO in 2012 and will update
information on global teak resources and markets. The results will be
published in 2024. These results are expected to facilitate a better
assessment of the importance of teak resources and the international teak
trade providing policy makers and investors with a better understanding of
the important role teak is playing today in providing raw material for
industries and the contribution to national economies. Expanding the border strip of the legal Amazon Recently, the Amazon Plan - Security and Sovereignty
(Amas) was launched, which aims to develop public security action in the
states of the Legal Amazon (Acre, Amapá, Amazonas, Maranhão, Mato Grosso,
Pará, Roraima, Rondônia and Tocantins). Thirty-four integrated bases will be set up by State
and Federal Police. Funding for this plan, an amount of R$2 billion, will
come from the National Public Security Fund and the Amazon Fund. See:
https://forestnews.com.br/governo-ampliar-fronteira-amazonia-legal/
9. PERU Wood product exports fell
in the first five months of 2023 Of the amount exported, France was the major market
accounting for 21% of exports but in the first five months sales dropped
15%. China was the second largest market accounting for 19% of wood product
exports, however, in the first five months of this year exports were down
almost 40%. Mexico and the Dominican Republic were the third
and fourth placed export destinations accounting for 15% and 11%
respectively. Semi-manufactured products earned US$20.1 million
during the first five months of the year, down 30% year on year. The main
market was France (48%) but export earnings were down 12% compared to the
same period last year. The second most important market for
semi-manufactured products was Belgium with a 13% share of the total
followed by China with a 12% share. During the first five months of the year the
sawnwood subsector exported US$8.1 million, a decrease of 21% year on year.
The three main destinations for sawnwood were China, the Dominican Republic
and Mexico. In the furniture and parts sub-sector, exports
amounted to US$1.47 million but this was 23% less than in the same period of
2022. The main destination market was the US accounting for almost 60% of
sub-sector sales but some 33% less than a year ago followed by Italy and
Spain. Reactivation of the Loreto wood manufacturing
sector The visit culminated in a meeting to coordinate
action for the benefit of manufacturing businesses in the wood sector in the
Loreto and Ucayali regions. Alex Ochoa Landa, Head of the Competitiveness
Unit travelled to the native community of San Antonio de Pintuyacu - Alto
Nanay where there is manufacturing of utilitarian and decorative items. The regional specialist also participated in a
meeting on the Exchange of Experiences and Identification of Investments for
Optimisation, Marginal Expansion, Rehabilitation and Replacement (IOARR)
programme related to wooden school furniture. SERFOR – the shihuahuaco and tahuarí action plan For this it presented the Action Planto allied
institutions such as the Forest and Wildlife Supervision Agency (OSINFOR),
the Ministry of the Environment (MINAM) and the Ministry of Production
(PRODUCE) as well as the Forestry Board which is led by the Ministry of
Economy and Finance and brings together various public and private
stakeholders in the forestry sector. As a result of the meetings it was agreed that
joint work plans with the technical teams of the General Directorate of
Biological Diversity of MINAM and the Directorate of Supervision and Forest
and Wildlife Inspection of OSINFOR should be prepared. SERFOR has consulted
with universities in the design of training courses for the botanical and
anatomical identification of both forest species. |
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Source:ITTO'
Tropical Timber Market Report
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