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Low inventories of African logs could trigger price surge

¡¾Feb.18, 2002¡¿

January has seen some price declines for logs and some were rather sharp these were caused mostly by lower demand and by prices for other species falling back after the rise last month. Analysts point out that, with the low inventories in both producing and consuming countries any sudden, even modest, rise in demand would trigger a quick upwards price movement and then, just as quickly, prices would fall again.

European markets are reported as quite dull, buyers in Portugal are still very quiet, hence the fall in Iroko prices. Prices for Sapelli logs are under pressure because of the large volumes of Niangon coming out of Liberia. Another negative factor driving down prices is that both Japanese and Chinese buyers are out of the market for African logs at the moment.