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International Log & Sawnwood Prices

16-31th March 2005


International Log Prices 

Sarawak Log Prices 

FOB                     per Cu.m

Meranti SQ up              US$215-220

        small            US$185-190

        super small       US$155-160

Keruing SQ up              US$180-185

        small            US$150-155

        super small       US$140-155

Kapur    SQ up              US$165-170

Selangan Batu SQ up       US$150-155

  

Francophone West African Log Prices  

Traders report that the markets have taken a definite upturn. Species in demand include azobe, where supply is now extremely low and unlikely to improve, bubinga movingui, iroko and padouk. 

Prices and demand for BC/C grades are now much firmer and some have moved up significantly.

Azobe LM is up Euro 23, B grade is up Euro 7 and  BC/C up Euro 23.   These increases are over and above last month's already higher levels.  

Bubinga LM is Euro 30 higher while Movingui BC/C is up Euro 7, padouk BC/C also up Euro 7. 

 In contrast sapele BC/C grade is down by Euro 15 though prices for LM and B grade have held firm as producers are changing over to secondary red species or red/brown species such as doussie, moabi and iroko.  

Producers report significantly higher overall demand which is one reason for the greater buyer interest in the BC/C grades, while at the same time production is only moderate.  

It is also certain that log buyers are conscious that Indonesia's success in severely curtailing illegal logging and movement of the illegally sourced timber flitches and sawnwood has greatly exacerbated the already tight supply situation in Asian timbers.  This has meant that West African countries are being asked to take up the shortfall in log volumes.   

At the same time it is clear that more West African countries are themselves imposing more stringent controls on harvesting and export of logs and turning over very quickly towards in-country processing.  

This is particularly noticeable in Cameroon where some exporters are leaving the trade while the new quota system in Congo Brazzaville also is having a significant effect in changing the pattern of trade towards higher value products. 

Demand from China for okume logs has recently strengthened and prices are now reported as very firm with reports of ships being delayed in the ports while shipments are accumulated.    

FOB                     LM  B      BC/C

                          Euro per Cu.m

Afromosia/Assamela       381       350  -

Acajou/N'Gollon     206  175    -

Ayous/Obeche              206       140       160

Azobe                   168      152  137

Bibolo/Dibtou        152      114      -

Movingui        190  175     152

Fromager/Ceiba              114       114  -

Iroko                    351  320  290

Limba/Frake         137  114       99

Moabi                   244  221       206

Padouk                 206  206       175

Sapelli                   229  206   175

Sipo/Utile              274  259       229

Tali                144  129       91

Doussie                457  366       274

  

Gabon Okoume

Grade                   per Cu.m

CI                 US$150

CE                US$122

CS                 US$95

QS                US$176

  

Okoume for China             per Cu.m

40% CI, 40% CE, 20% CS       US$200 (Free alongside)

  

Myanmar  

Teak Logs

Veneer Quality        FOB per Hoppus Ton

              Feb         Mar

2nd Quality       Euro 4321       Euro 4399

              5 tons               4 tons

3rd Quality       Euro 3979       Euro 3925

              10 tons               8 tons

4th Quality       Euro 3677       Euro 3647

              50 tons               51 tons

 

Sawing Quality       per Hoppus Ton

Grade 1 Av.       Euro2150       Euro 2142

              207 tons        44 tons

Grade 2 Av.       Euro 1594       Euro 1543

              357 tons        190 tons

Grade 3 Av.       Euro 777       Euro 788

              272 tons        98  tons

Grade 4 Av.       Euro 1034       Euro 1049

              618 tons        986 tons

Assorted Av.       Euro 584       Euro 777              861 tons        351 tons

Domestic       Euro 428       Euro 597

              1385 tons        650 tons

 

 Papua New Guinea  

Saw/veneer grade Monthly Average  

FOB                    per Cu.m

                     Dec 04 Jan 05

Malas                   US$60       US$60

Calophyllum          US$75       US$77

Taun                     US$72       US$71

Terminalia             US$61       US$61

Pencil Cedar         US$73       US$77

PNG Mersawa              US$82       US$86

Red Canarium              US$60       US$61

Erima                   US$58       US$60

Dillenia                 US$59       US$57

Burckella              US$60       US$60

Kwila                   US$96       US$104

  

Domestic Log Prices  

Brazil 

Prices of wood products in Real in the domestic market remain stable but, on the other hand, prices in US$ have fallen because of the effective devaluation of the Brazilian currency against the dollar (6% in the past few months).  

Logs at mill yard       per Cu.m

Mahogany Ist Grade     No Sales

Ipe                US$82

Jatoba                   US$50

Guaruba         US$35

Mescla(white virola)     US$42

  

Indonesia

 

Domestic log prices     per Cu.m

Plywood logs 

 Face Logs           US$90-100

Core logs              US$60-75

Sawlogs(Meranti)       US$105-115

Falkata logs           US$90-95

Rubberwood         US$85-95

Pine               US$95-100

Mahoni                 US$500-515

Peninsula Malaysia 

Logs

Domestic (SQ ex-log yard)  per Cu.m

DR Meranti          US$210-220

Balau                    US$175-180

Merbau                 US$240-245

Rubberwood        US$90-100

Keruing         US$180-190

  

Ghana  

per Cu.m

Wawa                  US$36-44

Odum                   US$77-175

Ceiba                    US$31-53

Chenchen             US$33-88

Mahogany

(Veneer Qual.)              US$40-91

Sapele                  US$55-154

Makore

(Veneer Qual.)              US$54-154

  

International Sawnwood  

Francophone West Africa  

Prices remain unchanged and the previously reported low production levels in the region continues.  There is some seasonal rain now in Cameroon and in Gabon with the expectation of the usual heavy rains in April which will slow log production.    

Prices are holding very firm and a generally low stock position in Europe seems likely to keep prices on a stable to rising trend over the second quarter.   Analysts report that French buyers are very active at the present time.  

FOB                            per Cu.m

Okoume                Euro

FAS GMS                    275

Standard and Better            260

FAS Fixed Sizes              290

Sipo

FAS Standard Sizes              488

FAS Fixed Sizes              519

Sapelli                  

FAS scantlings                     487

Dibtou                        

FAS Standard Sizes              381

FAS Fixed Sizes              412

Iroko

FAS GMS                    458

Scantlings                    519

Strips                           304

Khaya

FAS GMS                    366

 

Brazil 

Brazilian exports of solid wood products increased 37% in February 2005 in comparison with the same period of 2004. The main exported products were sawnwood, plywood and wooden furniture, representing together 63% of the value exported by the Brazilian solid wood industry in this period. 

Over the first two months of 2005, exports of solid wood products increased 23% in comparison with the same period of 2004. In terms of value of exports, the solid wood products have earned some US$ 587 million. 

In February 2005, US$ 68,5 million in wooden furniture was exported, an increase of 24% compared to exports in February 2004. 

Tropical sawnwood exports in February totalled US$ 46 million (161,700 cubic metres) up 28% year on year. 

Pine sawnwood exports increased (up 5%) not at such a strong performance as with tropical sawnwood.

FOB Belem/Paranagua Ports 

Export Sawnwood        per Cu.m

Mahogany KD FAS FOB

UK market           no trade

Jatoba Green (dressed)       US$590

Cambara KD        US$430

Asian Market(green)

       Guaruba       US$265

       Angelim pedra       US$280

        Mandioqueira    US$220

Pine (AD)             US$130

 The Brazilian Association of the Mechanically-Processed Wood Industry (ABIMCI) has made available the report presented by the European certifier BM TRADA on the audit carried out on the National Program of Wood Quality (PNQM). 

According to the report, ABIMCI (responsible for the programme development) has full control of the planning and implementation of the quality system of PNQM which is part of the process of certification of the CE conformity mark. The CE Marking has been required in Union since April 2004 for structural wood products. 

As stated in the report, no instances of non-were identified. On the contrary, the audit by BM TRADA affirms that the PNQM fulfills the European norm without exception.  

Since October 2003, ABIMCI has a sub-contracting agreement with BM TRADA for the CE marking of wood panels. According to ABIMCI, the programme has gone through various adjustments to fulfill all the European requirements.  

The report from BM TRADA confirms that the PNQM has sustained the confidence of the certifier agency and from now on the marking process could flow more quickly for the participants who fulfill the PNQM/ CE Marking requirements. 

Malaysia 

Sawn Timber

Export(FOB)           per Cu.m

White Meranti A & Up   US$335-345

Seraya

Scantlings (75x125 KD)  US$625-635

Sepetir Boards                US$185-195

K.Sesendok 25,50mm         US$335-340

  

Ghana

Ghana earned Euro 13.62 million from the export of 35,820 Cu.m of timber and wood products in February 2005.  This compared to February 2004 statistics of Euro 12.85 million from 34,772 Cu.m and showed an increase of 6.02% and 3.01% in value and volume respectively. 

Total cumulative export volume for the first two months of 2005 registered 64,126 Cu.m compared to 61,694 for the same period in 2004. The corresponding values were Euro 24.40 million in 2005 and Euro 22.83 million in 2004 respectively, registering increases of 6.89% in value and 3.94% in volume. 

Air-dry FAS 25-100mm x 150mm and up

x 2.4m and up

FOB              Euro per Cu.m

Afromosia             855

Asanfina        480

Ceiba                    180

Dahoma         310

Emeri                   350

Edinam                 370

Khaya                  540

Makore                 450

Niangon         490

Odum                   630

Sapele                  480

Wawa       1C&sel          250

Peru

European Community and Peruvian negotiators have agreed on the establishment of quotas for mahogany exports.  

The Commercial Counselor of Peru in Belgium, Mr. Eduardo Perez, explained that call for action was as a result of allegations by environmental groups of the possibility that illegally harvested Mahogany from Peru was entering the EU.   

Several representatives of the Peruvian government and exporters attended the negotiations in  Brussels and the group included Eng. Antonio Morizaki, Director General of the National Institute of Natural Resources (INRENA),  Mr. Alfredo Biasevich, representing the Exporters Association of Peru (ADEX) and Eng. Ignacio Lombardi of CITES in Peru.  

Proposals and ideas from Peru on the quota and on trade procedures to be applied will now be forwarded to the EC authorities. Analysts say that it is likely that the quota will call for exports to the EU to be held at 2004 levels.  

The Peruvian delegates provided information on the management and satellite surveillance methods and systems used for monitoring the forest concessions in Peru. 

Today, Peru's tropical forests are harvested under a government controlled forest concession system. Under the new quota system, the government set mahogany export limits for the whole country.   

For US Market                     per Cu.m

Mahogany  1C&B, KD 16%

Central American market      US$1220-1250

Mahogany  1C&B, KD 16%

US market                  US$1380-1450

Spanish Cedar No.1 C&B,

KD 16%,

Central Am. Market           US$615-620

Walnut 1" Thickness,

 6' - 11' length              US$640-660

Spanish cedar # 1 C&B,

KD 16%

Mexican market              US$650-660

Pumaquiro 25-50mm AD

Mexican market              US$460-490

Virola  Grade 1 1" to 2"

Length  6' - 8' KD

 Mexican market       US$270-290

Virola  Grade 2 1" to 2"

Length  6' - 8' KD

Mexican market              US$230-250

Lagarto  2" Thickness,

6' - 8' length          US$320-340

Cumaru 4" 6-11ft KD

Central American MarketUS$760-790

Ishpingo  2"

Thickness 6' - 8' length       US$355-365

  

Domestic Sawnwood Prices 

Brazil 

Sawnwood (Green ex-mill)

Northern Mills              per Cu.m

Mahogany             No sales

Ipe                US$346

Jatoba                   US$251

Southern Mills

Eucalyptus AD              US$119

Pine (KD) First Grade       US$154

  

Indonesia 

Sawn timber, ex-mill

Domestic construction material 

Kampar                per Cu.m

AD 3x12-15x400cm       US$200-210

KD                US$280-290

AD 3x20x400cm       US$305-315

KD                US$320-330

Keruing

AD 3x12-15cmx400       US$225-230

AD 2x20cmx400cm       US$220-225

AD 3x30cmx400       US$230-235

  

Malaysia 

Sawnwood            per Cu.m

Balau(25&50mm,100mm+)

                     US$235-245

Merbau                 US$425-435

Kempas50mm by

 (75,100&125mm)       US$195-200

Rubberwood

25x75x660mm up       US$235-240

50-75mm Sq.         US$240-245

>75mm sq.            US$255-260

  

Ghana 

Sawnwood                   per Cu.m

Wawa 25x300x4.2m         US$73

Emeri       25x300x4.2m           US$70

Ceiba 25x300x4.2m         US$53

Dahoma 50x150x4.2m         US$138

Redwood 50x75x4.2m          US$122

Ofram    25x225x4.2m         US$136

  

Peru 

                                       per Cu.m

Mahogany             US$1512-1522

Virola                   US$186-200

Spanish Cedar              US$630-640

Catahua         US$177-183

Tornillo          US$357-365

  

Abbreviations

LM       Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS        Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR           French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Grade B faced and Grade C backed MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF        Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot              Price has moved up or down

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Source: ITTO

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