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Traders Expect West African Log Prices To Move Up
¡¾2002.08.06¡¿

West African Log Prices

Only one or two changes in price have been reported during July but traders expect that West African log prices will move up following the recent increases in South East Asian Log prices. The ban on Indonesian log exports, together with the PRC and Malaysia agreeing to stop log imports from Indonesia should push prices higher during next months. Log supplies in West africa are reportedly tight but European buyers have been absent during the summer vacation period.

African log sales to China have risen 10% in volume terms over the past two months and are expected to go much higher in response to the now banned Indonesian supply.

In Cameroon log supply is now very tightly controlled and sawmills without a concession are closing because they are unable to purchase sufficient logs to keep mills in production. It is reported several sawmills are up for sale.

FOB	LM	B	BC/C
		Euro
Afromosia/Assamela	381	350	-
Acajou/N'Gollon	175	152	-
Ayous/Obeche	175	160	106
Azobe	145	122	114
Bibolo/Dibtou	145	106-	-
Fromager/Ceiba	114	114	-
Iroko	228	198	-
Limba/Frake	122	107	99
Moabi	213	190	-
Sapelli	221	206	175
Sipo/Utile	274	244	-
Tali	129	129	91

West African Sawnwood

There has been an overall rise in prices for West African sawnwood for many but not all species and it is expected that prices will continue to move up over the next two to three months as European buyers return to the market and order for their autumn stocks. As with logs, prices for sawnwood appear quite standardised throughout the region for Gabon, Cameroon and Congo Brazzaville.

Iroko has seen a substantial price rise but demand is now slack and Netherlands and Belgium. The high level of stocks of Sapele scantlings have put a brake on demand for new production.

Gabon Okoume sawnwood is becoming more established in Europe and prices have once again shown a modest rise. Sawmills in the region generally report buyers are taking up all current production for immediate shipment.

FOB	per Cu.m
Okoume	Euro
FAS Standard Sizes	266
Standard and Better	251
FAS Fixed Sizes	267
Sipo
FAS Standard Sizes	640
FAS Fixed Sizes	670
Sapelli
FAS	487
Dibtou
FAS Standard Sizes	381
FAS Fixed Sizes	412
Iroko
FAS GMS	426
Scantlings	457-487
Strips	274