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International Log & Sawnwood Prices

1-15th June 2005


International Log Prices 

Sarawak Log Prices 

FOB                     per Cu.m

Meranti SQ up              US$200-205

        small            US$170-175

        super small       US$140-145

Keruing SQ up              US$175-185

        small            US$145-155

        super small       US$115-125

Kapur SQ up         US$155-160

Selangan Batu SQ up       US$170-175 Ý

  

Francophone West African Log Prices 

FOB                     LM  B      BC/C

                          Euro per Cu.m

Afromosia/Assamela       381       350  -

Acajou/N'Gollon     206  175  -

Ayous/Obeche              206       191  160

Azobe                   175  160       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                   213  198       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$94

QS         US$176

 

Okoume for China

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

  

Myanmar   

Teak Logs

Veneer Quality        FOB per Hoppus Ton

                          Apr        May

2nd Quality       Euro 3731       Euro 3891Ý

              6 tons               4 tons

3rd Quality       Euro 3670       Euro 3702Ý

              12 tons               6 tons

4th Quality       Euro 3069       Euro 3522Ý

              53 tons               51 tons

 

Sawing Quality       per Hoppus Ton

Grade 1 Av.       Euro 1950       Euro 2077Ý

              23 tons               115 tons

Grade 2 Av.       Euro 1597       Euro 1606Ý

              224 tons        246 tons

Grade 3 Av.       Euro 765       Euro 877Ý

              79 tons               46 tons

Grade 4 Av.       Euro 1103       Euro 1196Ý

              896 tons        706 tons

Assorted Av.       Euro 724       Euro 841Ý

              178 tons        162 tons

Domestic       Euro 580       Euro 580

              860 tons        860 tons

 In the May auction a total of 3414 hoppus tons of teak logs were sold for a little over Euro 3 mil. Overall prices firmed on the back of a weaker Euro.  Fourth Grade veneer logs attracted bids as high as Euro 3823 per H. ton while the average price was Euro 3522 per h.ton.  For SG-1 logs the bid spread was just over Euro 400 with prices averaging Euro 2077.  

Papua New Guinea 

Saw/veneer grade     

Monthly Average FOB per Cu.m  

Mar              Apr

Malas            US$58           US$60

Calophyllum       US$71           US$81 Ý

Taun              US$69           US$77 Ý

Terminalia       US$60           US$60

Pencil Cedar       US$74           US$78 Ý

PNG Mersawa       US$86           US$83 ß

                          Mar              Apr

Red Canarium       US$60           US$60

Erima            US$60           US$60

Dillenia          US$59           US$57 ß

Burckella       US$61           US$61

Kwila            US$105       US$102 ß

 

 

Plantation Log Export FOB Prices

Kamarere

Log dia.         Mar

60+cm                  US$73

50-59cm        US$65

40-49cm        US$58

30-39cm        US$52

20-29cm        US$39

  

Domestic Log Prices  

Brazil

Logs at mill yard       per Cu.m

Mahogany Ist Grade     No Sales

Ipe                US$93

Jatoba                   US$58

Guaruba         US$40

Mescla(white virola)     US$48

 

New Reserves in Para

In May, Brazil's Ministry of Environment (MMA) announced the creation of five new forest concessions or so-called 'extractive reserves' in the State of Par¨¢.  These are areas where natural resources can be harvested under strict sustainable management plans without significant damage to the environment.   

Four reserves are located along the State coastline (Arai Peroba, Caet¨¦, Taperaçu Gurupi Piri¨¢, and Tracuapeu¨¢),and one is a forest reserve known as  Pamua, on the island of Maraj¨®. The area of the 'reserves' is reported as some 261,252 hectares.   

The coastline reserves were created to offer alternative and sustainable livelihoods to guarantee the survival of the communities in the area who also depend on fishing for part of their income.  

The MMA also announced a target to create Preservation Protection and Conservation Units (UC) over more than 9 million hectares in the Amazon, as part of the Amazon Region Protected Areas (ARPA) Program.  

These UCs are areas in which harvesting of natural resources is forbidden.  Created in 2002, the ARPA currently has 23 UCs, covering some 16 million ha.  

Indonesia 

Domestic log prices     per Cu.m

Plywood logs 

Face Logs             US$140-150 Ý

Core logs              US$65-80 Ý

Sawlogs(Meranti)       US$145-150 Ý

Falkata logs           US$90-95

Rubberwood         US$95-100

Pine               US$100-105 Ý

Mahoni                 US$500-515

  

Peninsula Malaysia 

Logs

Domestic (SQ ex-log yard)  per Cu.m

DR Meranti          US$225-235 Ý

Balau                    US$175-180

Merbau                 US$270-280

Rubberwood        US$95-100

Keruing         US$185-190 Ý

  

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

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  

Search for new markets  

Currently, the Brazilian timber sector is expected to see a 28% growth in the wood products sector in 2005 compared to 2004 and this will be mainly because of the efforts of the Brazilian private sector to diversify into new markets.   

According to market research done by the Brazilian timber industry, the best opportunities are to be found in the Middle East and Asia which, in spite of not being traditional markets for Brazil, have considerable potential for growth.  

The moves of the Brazilian industry to diversify stems from the steady increases seen in interest rates in the US which ultimately will mean a reduction in demand for wood products for housing and construction in that market. 

Another target of the Brazilian wood products sector is the domestic market. According to recent studies, while Brazil is currently the largest tropical timber producer and consumer, wood products manufactured from plantation species are not widely accepted in the domestic market.  

In order to address this situation, the Brazilian Association for Mechanically Processed Timber (ABIMCI), jointly with the National Institute for Metrology, Normalization and Industrial Quality (INMETRO) are developing ideas for changing national standards and norms.  The idea is to have standards and norms that  will provide equivalent assurances of safety and utility to domestic consumers with respect to wood products from plantations.

FOB Belem/Paranagua Ports

Export Sawnwood           per Cu.m

Mahogany KD FAS FOB

UK market                  no trade

Jatoba Green (dressed)              US$610

Cambara KD               US$470

Asian Market(green)

 Guaruba         US$265

       Angelim pedra             US$280

        Mandioqueira           US$230

Pine (AD)                    US$135

 Export Trends  

In April, exports of tropical sawnwood reached USD 52.6 million (166,000 cubic metres) a 29.7% growth in comparison to the same period of 2004 (128,000 cubic metres). 

Exports of wooden furniture amounted to USD 78.4 million in the month of April alone, representing an increase of almost 24% compared to April, 2004 (USD 63.3 million). 

Malaysia 

An overall upward movement in sawntimber FOB prices has been observed. Some mills report that there is a shortage of logs for the main species.  

Prices for Merbau are particularly firm and for some specifications prices are as high as US$950 per cubic metre. Other timbers are also experiencing price increases but not as drastic as that for Merbau.  

On the other hand, Rubberwood, the most important furniture timber in Malaysia, the demand is currently not strong and analysts say this is due to the weak international furniture demand at present and it is reported that sawmillers in southern Thailand are aggressively selling sawn Rubberwood in the Malaysian market. This, say analysts, is saturating demand and causing price weakness locally. 

Sawn Timber

Export(FOB)                per Cu.m

White Meranti A & Up         US$330-340

Seraya

Scantlings (75x125 KD)       US$625-630 Ý

Sepetir Boards                    US$195-205 Ý

K.Sesendok 25,50mm             US$360-370 Ý

 

Ghana  

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

Mahogany quota set

Peru has now established a national export quota for Mahogany (Swietenia macrophyla) for 2005.   The volume agreed with the timber industry is for allowable exports of 23,621 cubic metres for the year and volumes will be computed as from January 01, 2005. 

The government order also established the Forest and Wildlife Technical  Administration as responsible for supervising shipments of Moena Rosana, Cumala, Aguano Masha or any other species that could be confused with Mahogany .

                                                  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 American Market     US$615-620

 

Walnut 1" Thickness,

 6' - 11' length                     US$640-660

Spanish cedar # 1 C&B,

KD 16%

Mexican market                     US$630-650

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 Market    US$760-790

Ishpingo  2"

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

 

Peru's 2005 exports
Peru's wood product exports up to April registered 48% increase compared to the same period last year. 

Export earnings from timber amounted to US$ 52.8 million (Jan-Apr 2005) and sawnwood exports led the way, increasing 41% and contributing almost 60% to the sectors exports up to April. 

Mouldings such as "strips and friezes, decking, flooring and furniture blanks" are the second most important category of product exported and for these items exports were up almost 80% on the sam eperiod last year. 

Plywood exports were in third place (up 64%) followed by wooden furniture and parts exports.

 Domestic Sawnwood Prices 

Brazil 

Sawnwood (Green ex-mill)

Northern Mills              per Cu.m

Mahogany             No sales

Ipe                US$399 Ý

Jatoba                   US$287

Southern Mills

Eucalyptus AD              US$136

Pine (KD) First Grade       US$178

 

 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 2x20cmx400       US$220-225

AD 3x30cmx400       US$230-235

 

Malaysia

Sawnwood            per Cu.m

Balau(25&50mm,100mm+)

                     US$235-245

Merbau                 US$475-490 Ý

Kempas50mm by

 (75,100&125mm)       US$195-200

Rubberwood

25x75x600mm up       US$220-230 ß

50-75mm Sq.         US$230-235 ß

>75mm sq.            US$255-260 ß

 

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

High timber imports

Peru is rich in forest resources, having a great diversity of species (over 2,500 ) so it comes as a surprise to see timber imports being so high. 

Customs records show that Peru imported wood products to the tune of US$49 million in 2004, mainly coated particleboard (melamine and decorative overlays, fibreboard, OSB, kiln dried and dimension Pine sawnwood, transmission poles and railway sleepers (Pine), wood for matches, RTA furniture and joinery items (mainly doors and frames). 

Chile was the main supplier providing reconstituted wood panels, plywood and KD Pine sawnwood.  Ecuador was the other main supplier to Peru.  

Some imports came from the US, mainly transmission poles and Pine sawnwwod. Brazil supplied OSB and RTA furniture and laminated wood flooring. Imports were also sourced in Colombia

 International Plywood and.

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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