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International Log & Sawnwood Prices

16 – 31th May



  Market developments seem a distant dream
It is becoming increasingly difficult to get trade news from
the region. Communication channels have not been
affected by pandemic control measures and many logging
and milling operations are continuing, the main issue
seems to be that correspondents are so distracted trying to
survive financially and pay wages that their time horizon
has become very short, market developments seem a
distant dream at present.

EU buyer interest wanes as their stocks rise
As could be expected there have been few price
movements with importers and shippers sticking to
previously negotiated prices.

Producers report some adjustments have been made in
prices for the EU market, for example prices for ayous for
the Italian market have started to ease and buyers in
France have stepped back from orders for moabi and
douka as their stocks are higher than usual and the summer
vacation season is fast approaching.

Shippers say the only moderately active market is China
where demand for okoume sawnwood is holding up. Also
there has been some interest in ovangkol which, say
importers, is an alternative,, although quite different, for
kevazingo in the Chinese home market.

It is reported that exporters in Equatorial Guinea are
shipping bubinga with CITES certificates to China but
prices are falling.

Kevazingo issues to be discussed to provide some
clarity on a complex issue

Trade sources in Gabon report that there are some 10,000
cubic metres of kevazingo logs and sawnwood waiting for
milling and further transformation. Producers say the
kevazingo trade issue is becoming more and more difficult
to understand.

To address this it appears the Minister will meet with the
trade so they can hear directly from him what the current
thinking is. Recently the Minister approved a large
shipment (said to be 24,000 cubic metres) of sawn
okoume, ovangkol, padouk and okan to China.

Producers in Gabon face new challenges to get export
documents cleared by the Ministry as they must submit to
temperature scans and provide contact address and
telephone numbers. Also, when visiting the ministry,
everyone must now make an appointment so crowding can
be avoided.


 Roadmap to ease COVID-19 restrictions
The government is expected to soon announce a detailed
‘roadmap’ on lifting restrictions that ensures safety as
‘new normal’ socio-economic lives and business activities

Restrictions to curb the spread of virus were first imposed
mid-March with a 3-weeks lockdown in the major cities of
Accra and Kumasi where extensive contact tracing and
testing was conducted following a surge in infections.

On 1 May domestic flights resumed with strict travel
protocols but the ban on public gatherings were still
restricted and the borders remained closed until end of

The President said the country has to adjust to living with
this virus and urged the public to continue the wearing of
face masks, adhere to social distancing and adopt hygiene

In the light of government plans to ease some restrictions
it is expected the announcement on the roadmap will
coincide with the new policy guidelines on existing

Ghana – infections among the lowest in Africa
As of 25May Ghana had recorded 6,683 infections from a
total of 194,763 tests conducted with 1,998 recoveries and
31 deaths. The data shows that the mortality rate and
positive test rates for the entire population stood at
0.0001% and 3.43% respectively, considered one of the
lowest rates in Africa.

Representatives from various sectors of the economy held
discussions with government on how to transition the
country into living with this virus as the government’s
stimulus to cushion the impact of the pandemic comes to
an end.

Exports to leading markets dip
An analysis of timber export data shows that countries in
Asia had consistently purchased around 40,000 cu.m of
wood products from Ghana in the first 2-months of each
year from 2016 to 2019.

However, export volumes dipped sharply in 2020 such that
for the same January and February period only 23,000
cu.m was shipped.

The steep decline clearly illustrates the impact of the
pandemic especially on demand from China where
businesses were seriously affected.

Exports to other markets such as Europe, America, the
Middle East and regional African markets were sustained
in January and February this year relative to previous

Business activity slow but bounce-back to come
The President has assured businesses that the government
will do everything it can to ensure a post-corona business
bounce-back. The President gave this assurance when he
launched a GH? billion corona virus alleviation
programme and business support scheme.

The beneficiary sectors include agriculture and agrobusinesses
as well as manufacturing. The domestic media
has reported that loans with an interest rate of 3%
requiring no collateral will be offered and that there will
be a moratorium on repayments.

The hardest hit sectors are the Micro, Small and Medium
Enterprises (MSMEs) which account for 70% of Ghana’s
GDP. MSMEs represent around 90% of businesses in the



  Government support for workers
The government has announced that 7.6 million
Malaysians received financial assistance from the
government amounting to RM3.41 billion. Contributors to
the national employee provident fund have been allowed
to withdraw part of their savings while the Movement
Control Order (Lockdown) prevents them from working.
A total of 4.4 million contributors applied for withdrawals
and 3.9 million were approved.

In a Wage Subsidy Programme, 267,752 employers were
involved with about two million employees. A total of
RM2.24 billion has been allocated to this Programme in
addition a SME Soft Loan Fund has been accessed by over
14,000 SMEs and RM5.8 billion has been disbursed.


Private sector contributions for people in need
The Ministry of Plantation Industries and Commodities
has reported that the Malaysian Timber Council (MTC)
has, through its Covid-19 Humanitarian Fund initiative,
raised RM895,550 out of the targeted RM1 million. The
MTC launched this fund-raising effort with the
cooperation of timber associations and companies

More than 100 logging companies and seven associations
have contributed to the fund even though their businesses,
especially SMEs, are affected. Another 30 contributing
companies are from the furniture sector and 71 from other
timber sectors. Contributions will be channeled to the
Ministry of Health to be delivered to people in need
according to the Ministry.

Sarawak – procedures to be adopted in forest

The Forest Department Sarawak has prepared a Standard
Operating Procedure (SOP) for forestry activities to serve
as guidance for forest timber licensees who are still
allowed to operate despite the Movement Control Order.

For camps and log pond areas the SOP requires the
company to prepare and implement an internal plan to
ensure all employees remain safe and healthy.

This will involve adjusting operating hours; the number of
workers in quarters provided by the company; the number
of workers commuting from home and the number of log
truck hauls from forest to mills.

The company must practice good hygiene and undertake
and record daily temperature screening of workers.

The SOP for transportation of logs requires all truck
drivers to obtain a permit from the nearest police station in
the case of the transportation of logs on public roads. A
maximum of two people are allowed in a truck during log
transportation. The operating time for transportation of
logs on public roads is from 7am to 7pm.

For more details see:

MTCC realigns technical procedures
The Malaysian Timber Certification Council (MTCC) has
revised its technical documents to ensure they are in line
with the latest organisational, procedural and technical
developments related to the Malaysian Timber
Certification System (MTCS).

The latest updates also took into account the revisions
made by PEFC to its corresponding standards and
technical documents.

The revised documents are:
 SSP 4/2020 – Standard Setting Procedures for
Development of Forest Management Certification
 GFMC 3/2020 – Group Forest Management
Certification – Requirements
 NCB 7/2020 – Procedure for PEFC Notification
of Certification Bodies Operating Forest
Management System or Chain of Custody
 LG 8/2020 – Procedure for Issuance of PEFC
Trademarks by MTCC
 MTCS 10/2020 – The Malaysian Timber
Certification Scheme (MTCS) and Its
Implementation Arrangement

Documents are available at:

The MTCS has been endorsed by the Programme for the
Endorsement of Forest Certification (PEFC) the largest
forest certification programme, representing more than
300 million ha. of certified forests worldwide. The MTCS
is also the first tropical timber certification scheme in the
Asia Pacific region to be endorsed by the PEFC.

Currently, there are 4.62 million ha of PEFC – MTCS
certified forests in Malaysia, representing 18 Forest
management units (FMUs) and 6 FPMUs. Some 381
PEFC certificates for Chain of Custody have been issued.

Sarawak forest revenue down
The Sarawak Forest Department Director, Hamden
Mohammad, has reported that revenue generated by
Sarawak’s forestry sector dropped by over 15% in the first
quarter this year and it is likely to drop much lower.

To mitigate the impact of the decline in revenue the Forest
Department has allowed timber sector to continue
operations even during the early phase of the MCO but
Hamden said he is aware production depend on companies
receiving orders and these are just not arriving.

He urged companies in the sector to try and avoid laying
off workers even though the industry is currently facing a
challenging environment. The forestry sector in Sarawak
employs over 100,000 direct workers.


  Output from timber sector fell around 10% in April
The current pandemic has put enormous pressure on
timber companies which have found the flow of orders
from international markets has collapsed.

The Chairman of the Association of Indonesian Forest
Concessionaires (APHI), Indroyono Soesilo, said that
output from the timber sector fell around 10% in April and
that he expects a steeper decline in May.

He commented that action by the government in relaxing a
range of regulations to ease the burden on companies is
helping with maintaining the work force.

He proposed some further steps including expanding the
implementation of the Timber Legality Verification
System (SVLK) at the global level, strengthening market
intelligence for Indonesian manufacturers, arranging
business meetings and trade missions, and boosting the
function of the Indonesia Timber Exchange (ITX).

The Indonesian Ambassador to South Korea, Umar Hadi
said the potential for expansion of Indonesian processed
wood products sales based on SVLK to South Korea offers
opportunities as South Korea has a law on ‘Sustainable
Use of Timber’. In addition, he said South Korea’s
economic growth depends heavily on international trade.

Upstream/Downstream integration would benefit
furniture sector

Wang Sutrisna, Finance Director of PT Integra
Indocabinet Tbk (WOOD), has said furniture sector
companies in Indonesia feel that government policies are
not encouraging growth in the sector and should be


Wang said that despite having a huge potential there is a
lack of upstream/downstream integration in the sector
which in other countries delivers many benefits.

SVLK important for boosting exports
The Coordinating Minister for Maritime Affairs and
Investment, Luhut Binsar Pandjaitan, stressed the
importance of the Timber Legality Verification System
(SVLK) related to sustainable forest management to meet
export market demand for verification of legality.

In related news the Minister of Industry, Agus Gumiwang
Kartasasmita, proposed that SVLK be mandatory in the
upstream wood processing industry but voluntary in the
downstream wood processing industry as this would ease
the burden on SMEs.

The Secretary General of the Ministry of Environment and
Forestry, Bambang Hendroyono, said the Ministry plans to
make it easier for SMEs to comply with the SVLK
regulations and would be providing incentives for the
SME sector.

51 million hectares of protected areas
Siti Nurbaya, Minister of Environment and Forestry said,
at a panel discussion during the ‘World's Forests 2020’
(SOFO 2020) hosted by FAO, that while Indonesia's
annual deforestation was over 3.5 million hectares in the
period 1996 to 2000 it has fallen sharply to 0.44 million
and will continue to fall.

Deforestation rates have declined sharply during the
period of the present government which is committed to
meeting global targets for forest security.

The Minister said Indonesia has 51 million hectares of
protected areas or more than 28% of the land and her
ministry is working hard to develop a protected area policy
to connect fragmented animal habitats separated due to
concession allocations.



 Pandemic update
As of 27 May 2020 there were 206 confirmed cases out of
21,593 tested since the first case was confirmed on 23
March. Yangon is the ‘hot-spot’ with 161 cases, of which
82 are being treated in hospital.

The authorities in Myanmar warn that the country is likely
to face a surge in cases because of the scheduled
repatriation of about 30,000 migrant workers from
Thailand. All returnees will be required to stay at
quarantine centres for 21 days.

Myanmar has not implemented a lockdown as yet but
transportation between Yangon and other cities remains
restricted and only a few domestic air routes are operating.

In Yangon only some areas have ‘stay home’ restrictions.
Other measures in the city include a ban on gatherings of
more than five people and social distancing. Restaurants
remain closed but shopping malls have re-opened but with
limited operating hours.

Tender sale postponed again – millers fear log

As a result of the suspension of the Myanma Timber
Enterprise (MTE) log tender sales for the three months
from March to May, manufacturers have started to worry
about a hardwood and teak log shortage.

Usually the tender sale in April is suspended because of
the Myanmar New Year Holiday but this year the
extended suspension of sales is likely to cause a problem
for export millers.

The MTE also suspended tender sales for logs and
sawnwood destined for domestic consumption which are
priced in Myanmar Kyats. Analysts comment that the
MTE must be facing financial problems as there has been
no income for three months. According to manufacturers
in Myanmar, MTE has, in an effort to assist timber buyers,
extended the repayment schedule for at least another one
month from end of May.

According to The Confederation of Trade Unions in
Myanmar (CTUM), 47 factories in Yangon have either
closed or reduced their workforce, making 6,355 factory
workers redundant. Most are from the garment sector and
so far there have been no shut-down in the wood products

CTUM says at least 10 more factories have reduced their
workforce since it compiled its figures, some of them
temporarily but others permanently.

Some of wood industries have reduced their workforce
laying off mainly daily wages workers, the most
susceptible in this downturn. A few timber plants have
reduced the number of working days and some have
allowed voluntary resignation.

State Counsellor Daw Aung San Suu Kyi has said
rebuilding employment opportunities will be at the top of
the agenda in the post-coved period.


Illegal timber seized
The local media has quoted the Director of the Forest
Department in the Mandalay Region as reporting seizure
of over 1,400 tons of illegal timber in the region in the first
five months of this year. The seized timbers comprised
over 200 tons of teak, over 200 tons of other hardwoods
and close to 1,000 tons of other timber products.

Zaw Win Myint, Director of the Forest Department, said
concerted action in cooperation with other Departments
against smugglers can greatly reduce illegal logging and

This year there have been 421 smuggling cases in which
120 smugglers were arrested and 66 various types of
machinery seized.

Ethnic groups urged to conduct virus health education
The Peace Commission and Committee for Coordination
with Ethnic Armed Organizations has presented medical
supplies to the Ethnic Armed Organizations (EAO) in

Dr. Tin Myo Win, Chairman of Peace Commission and
Committee for Coordination with Ethnic Armed
Organizations, urged the ethnic groups to conduct virus
health education based on the medical advice from the
Ministry of Health and Sports. Dr. Tin Myo Win urged the
ethnic groups to effectively use the medical supplies for
fighting against the virus.

IMF Loan
Myanmar’s Union Parliament approved a proposal to seek
US$700 million in loans from the International Monetary
Fund (IMF) to plug budget deficits resulting from
increased spending on economic recovery, health sector
improvements and social security.

Myanmar has forecast the budget deficits to widen this
fiscal year made worse by the extra spending needed to
mitigate the impact of pandemic on the economy.

U Maung Maung Win, Deputy Union Minister for
Planning, Finance and Industry, said the government needs
to increase stimulus spending to revive the economy,
upgrade the health sector and provide cash and food for
low-income households even as government income

In related news Myanmar will also receive some US$1.8
billion in financial support for development projects from
the Asian Development Bank.


  Powerful cyclone causes immense damage
The powerful cyclone (Amphan) that slammed into the
coastal region on the India/Bangladesh boarder is said to
have caused damage estimated at US$13.2 billion dollars
in West Bengal alone according to the state government.

Pandemic update
There were 66,330 serious coronavirus patients in India as
of 20 May. Happily around 40% of the total had
recovered. Maharashtra is badly affected and continues to
report high numbers of cases. It was the first state to
confirm over 40,000 coronavirus cases. Delhi, the national
capital reported 11,659 cases.

However Tamil Nadu had the highest number of
coronavirus cases (13,967) after Maharashtra. The
Lockdown in India was extended until 31May 2020.

Analysts write “the public and trade are tired as the
economy suffers for want of action. Workers have been
frustrated and millions of them have left their work sites
and returned to their home states. The industry feels that
their return, even when the lockdown ends, will take time
so it is very doubtful the industry can return to normal

The government has announced plans for a further easing
of restrictions. From 8 June, restaurants, hotels, shopping
centres and places of worship will be allowed to re-open in
the least affected areas but in areas with a high numbers of
infections the lockdown will remain.

Over half the timber mills in Kandla remain closed
The timber industries in Kandla import annually around 4
million cubic metres of timber accounting for
approximately 65% of India’s total timber imports. There
are nearly 2,000 saw mills and more than 100 plywood
units in the proximity of Kandla port where 80,000-
100,000 direct labourers are employed.

Despite the central government’s easing of restrictions of
work it is estimated that well over half the mills in Kandla
remain closed and commentators in India say it could take
years for industrial output to get back to pre-crisis levels
as demand has collapsed.

When the timber mills closed thousands of workers were
laid-off and headed back to their home states to wait out
the crisis. Navneet Gajjar, president of Kandla Timber
Association has been reported in as
saying it could take at least a year to bring normalcy in the
industry as those labourers who have gone back to their
states will not return for 5 months.

The other problem facing the industry is the huge stock of
imported timber at the ports awaiting collection. Importers
say, currently, they cannot pay the 18% GST and 5%
import duty in which case the timber the timber would go
to Custom bonded warehouses. Eventually the importers
will have to collect the timber and at that time will be
presented with a extra bill for storage.

For more see:

US urged to relocate from China to India
The US is currently exploring with India, Australia, Japan,
New Zealand, South Korea and Vietnam options on
diversifying supply chains to eliminate dependence on
China to create what has been dubbed an “Economic
Prosperity Network” of trusted partners.

To drive this initiative the Indian government has been
discussing with US companies amendments to the tax and
labour laws that would make India a favoured destination
for companies. Several Indian states have taken the
initiative to streamline investment procedures and are
looking for the central government to keep up the
momentum on this initiative.

Read more at:

Plantation teak
Due to current international situation new business
transactions are at a stand-still. C&F prices have not been
updated as there has been no trade.

Locally sawn hardwood prices
Production and imports have ceased.

Production and sales have ceased due to the Lockdown in
heavily affected areas and most of the workers have
moved back to their states. But in some states where the
virus spread is minimal, resumption of production has
been permitted but few mills are taking advantage of this.

Recently the Karnataka and Kerala Plywood
Manufacturers Associations meet to consider how to
respond to the current situation and announced the
intention to increase plywood prices to cover the
anticipated increased cost of labour, timber and chemicals.

As most other states are under lockdown price adjustments
are still under consideration and the final picture will
emerge only after the Lockdown is lifted over the entire


 COVID 19 update
As of 25 May Vietnam’s Ministry of Health confirmed a
total of 325 cases of the corona virus of which 267 have
recovered and been discharged from hospital. No deaths
have yet been reported. Between 16 April and 25 May no
new cases caused by community transmission have been

The government is maintaining its suspension on entry
into Vietnam by non-nationals, including people with a
Vietnamese visa exemption certificates. Only Vietnamese
nationals, diplomats and designated highly skilled workers
are allowed to enter the country. All persons entering
Vietnam must undergo medical checks and 14-day
quarantine upon arrival.

Economic growth prospects
The International Monetary Fund has stated that
Vietnam’s economic growth may slow to belowr 3% this
year but may pick up to 7% in 2021. Vietnam has entered
a “new normal” as the Government has allowed the
reopening of businesses including non-essential services
except for entertainment businessses.

Timber industry among those most affected by

According to VIFOREST, the timber sector is expected to
resume its growth momentum from the third quarter of

At a recent meeting to decide on support for the timber
sector, Dr. Nguyen Xuan Cuong, Minister of Agriculture
and Rural Development, highlighted 4 measures to boost
post-covid recovery in the timber industry.

 Policy interventions to support over 5,000 sector
enterprises in accessing the government’s
US$10.8 billion credit support package, lower
interest rates, delay in the collection of taxes and
land fees and financial assistance for employers
and employees.

 As Vietnam has emerged as one of a few
countries effectively managing the impact of the
virus support will be provided to capture market
opportunities in those consumer countries that are
resuming business activities. Encouragement will
be given to initiatives such as trade fairs and
other forms of off-line trade development as well
as online marketing of wood products.

 The industries in the sector will be assisted to
review and revise their business strategy to adapt
to the “new normal” as preparation for the
anticipated economic ‘take off’ beginning in the
third quarter of this year.

 Support for restructuring of the sector toward
sustainable development through promoting large
timber plantation establishment, diversification of
export markets and intensifying value adding of
made-in-Vietnam wood products and developing
Vietnam as a world leader in wooden products.

Vietnam intends to deepen integration into the global
wood product supply chain with well-developed brands
and highly ethical corporations. The Minister also mention
the opportunities in the domestic market of almost 100
million wage earners.

For more see:

First Vietnam Forest Certification certificates granted.
On 17 May 2020, the Vietnam Administration of Forestry
(VNFOREST) granted the first domestic forest
certification certificates to 3 companies in the Vietnam
Rubber Group (VRG). These first certificates cover 11,400
ha. of rubber plantations managed by Binh Long, Phu
Rieng and Dau Tieng Rubber Companies.

In 2019, Vietnam became 50th member of PEFC and the
Vietnam Forest Certification Scheme (VFCS) was
recognised worldwide. Achieving these first VFCS has
marked a turning point in the cooperation between
Vietnam and PEFC.



 Pandemic control measures by Federal government
and action by companies in the forest sector
The increase of corona virus cases in Brazil has put
pressure on the Federal Government to adopt more active
measures to contain the spread. However, the most
effective procedure, according to the Ministry of Health, is
social isolation.

The role of the Federal Government in support of
businesses has, so far, been limited to the release of
credits, financial resources and the temporary suspension
of some taxes while the State Governments are responsible
for effective control measures.

As for the forest sector, the main measures adopted by the
Federal government are as follows:
“Corona-voucher”: Law 13.982/20 provides an emergency
basic income of R$600 to informal, self-employed and
those workers without fixed income.

Credit for employment maintenance: Provisional Measure
no. 935/2020 releases a credit of R$51.6 billion for
employment maintenance. The amount is earmarked for
the implementation of the "Emergency Benefit for
Employment and Income Maintenance".

This programme aims to reduce the social impacts related
to the pandemic through the payment of financial aid to
workers who have reduced working hours or suffered
contract suspension.

A measure to support those whose working hours and
wages have fallen (Provisional Measure no. 936/2020)
aims to prevent mass layoffs due to the virus. This
arrangement allows companies to negotiate with
employees for up to 70% of the employee's working hours
and wages without the intervention of labour unions and
will run for three months. This measure creates a top-up
benefit paid by the government and provides employment

According to Provisional Measure No. 938/2020, ‘Release
of financial resources for states and municipalities’ the
Federal government will release up to R$16 billion to
states and municipalities for four months. The funds
guarantee the maintenance of funding made available last
year even with the fall in Federal and State revenues.

Administrative Ordinance n° 897/2020,’ Suspension of
FGTS payment’ provides for the suspension of FGTS
payment (Fund for Employment Time Guarantee/Fundo
de Garantia do Tempo de Serviço) for March, April and

Zero IOF on credit: Decree n° 10.305/2020 reduces to zero
the ‘Tax on Financial Operations’ (IOF - Imposto sobre
Operações Financeiras) charged on credit operations.
Currently, the IOF for credit operations is 3% per year.

Some companies in the forestry sector have been helping
the public. For example Suzano Papel e Celulose, a
Brazilian pulp and paper conglomerate announced that it
will start distributing 159 respirators and 1 million face

Klabin, the biggest paper producer, exporter and recycler
in Brazil started construction and purchased equipment for
the immediate installation of 10 ICU beds and 40
infirmary beds at the Telêmaco Borba regional/ Campaign

Veracel Celulose joined with partner companies to donate
more than 86,000 health and hygiene items to the health
departments of the municipalities of Porto Seguro and

Bracell, another pulp sector company donated 18
respirators, 350,000 face masks, 40,000 medical aprons,
33,500 surgical gloves, 680 face shields, 250 medical
goggles, 164 protective coveralls and 4,000 cleaning and
hygiene items to states where it operates.

Crisis in the Bento Gonçalves furniture cluster
With revenues of R$384 million in the first quarter 2020
the Bento Gonçalves furniture cluster recorded a 3.3%
decrease in revenue compared to the same period in 2019.
However, the decline in revenue at 1.38% in the first
quarter for all sectors in the state of Rio Grande do Sul
was not as high as in the furniture sector.

The March figures were particularly bad according to the
Secretariat of Finance in Rio Grande do Sul. March data
was negative and it is likely that this will continue into

The performance of the international trade sector also
weakened dropping over 7%, driven down by the over
35% quarter on quarter drop in trade with the US in 2020.

According to the Furniture Industry Association of Bento
Gonçalves (Sindmóveis) an improvement is expected from
the second half of the year, with economic activity
recovering from the 3rd and 4th quarter of this year but job
recovery will extend into 2021.

According to the Furniture Industry Association of Bento
Gonçalves (Sindmóveis) the Bento Gonçalves furniture
cluster includes about 300 industries in the municipalities
of Bento Gonçalves, Monte Belo do Sul, Pinto Bandeira
and Santa Tereza and many are already feeling the effect
of the pandemic on their businesses.

First quarter exports are not encouraging says Sindmóveis
and there have been around 2,600 layoffs by furniture
companies in Bento Gonçalves and around 40% of the
companies have introduced reduced working hours.

The Brazilian Association of Furniture Industry
(ABIMÓVEL) commented that the furniture sector was
the eighth largest production sector in the country and is a
major employer with some 260,000 direct jobs in the

ABIMÓVEL expects that things could worsen if there is
no quick recovery of the economy, if trade does not
resume, if credit lines are not made available and if
support for micro, small and medium-sized companies is
not provided.

Export update
The value of April 2020 exports of wood-based products
(except pulp and paper) declined around 3% compared to
April 2019, from US$245.8 million to US$239.0 million.

April pine sawnwood export values were slightly down
year on year from US$46.0 million to US$45.6 million
this year. In contrast export volumes increased 11.0% over
the same period, from 221,300 cu.m to 245,600 cu.m.

The volume of tropical sawnwood exports decreased year
on year a massive 30% in April, from 45,200 cu.m in
April 2019 to 31,400 cu.m in April 2020. The value of
exports also dropped by about the same percentage
US$18.5 million to US$12.6 million over the same period.

Pine plywood exports bucked the downward trend
increasing 24% in value in April 2020 compared to April
2019, from US$40.1 million to US$49.9 million. The
volume of exports also rose jumping over 35%
from147,800 cu.m in April 2019 to 200,900 cu.m in April
this year.

However. Both the volume and value of tropical plywood
exports dropped in April. The volume was down 29%) and
the value dropped 19% from 8,600 cu.m (US$3.2 million)
in April 2019 to 6,100 cu.m (US$2.6 million) in April

The export market for wooden furniture has weakened
sharply and the value of exports declined from US$44.4
million in April 2019 to US$25.8 million in April 2020,
almost a 42% drop.

Brazil-US trade facilitation
The Brazilian timber industry, represented by the Brazilian
Association for Mechanically Processed Timber
(ABIMCI), recently sent a written request to the
governments of Brazil and the United States urging both
sides to facilitate trade and good practices between the two

This came about because of the joint initiative of the
Business Coalition for the Facilitation of Trade and
Barriers (CFB), led by the Brazilian National
Confederation of Industry (CNI), the US Chamber,
Amcham and 28 other entities, including ABIMCI.

The request includes binding commitments in priority
areas such as customs modernisation and trade facilitation,
good regulatory practices, electronic commerce and
combating corruption. The Coalition believes that a
proposal for a trade modernisation agreement could be
reached without the need for the involvement of Mercosur
or legislation of the United States.

The document also states that, if implemented, the
proposal would reduce costs, increase trade and bilateral
investment and would also represent a first step towards a
more comprehensive future trade agreement.

According to ABIMCI, this initiative is timely due to a
close relationship between the two countries and because
the current pandemic is affecting the economies of both
countries significantly. Joint action in areas that enable
better synergy for businesses would be beneficial, says


 January exports down 20%
The Exporters Association (ADEX) has reported that in
January Peruvian timber exports were worth US$9.1
million FOB, this represents an almost 20% decline from
the US$11.2 million export earnings in January 2019. In
January 2020 exports of semi-manufactured products
accounted for 54% of total exports while sawnwood
accounted for a further 37% share. The export value of
both groups of products was down year on year.

Of the US$9.1 million exported in January, China was the
main market with a 43% share which was up significantly
year on year. Mexico was the second largest market in
January with 12% share but here export earnings dropped.
Other markets of note were France and Denmark.

Expansion of certified forests
Despite the difficult times the world is facing due to the
pandemic initiatives to protect and responsibly harvest
tropical forests continue. FSC forest management
certification has expanded steadily in Peru as companies
and communities adopt more responsible harvesting
strategies. This year two new certified areas located in the
Ucayali region have been reported.

Online legal timber information system
The National Forest and Wildlife Service (Serfor) has
announced that in early 2021 its online system to help
verify the legal origin of Peruvian timbers will be
operational. The National Forest and Wildlife Information
System (MC-SNIFFS) will collect and report the
information generated at each stage of the production
chain from origin to market.

Recently a review was conducted with managers and
specialists from Serfor and the regions with technical
support provided by the USAID Pro-Bosques Project. To
ensure efficiency and transparency efforts are being made
to develop an effective and integrated computer system.

In the coming months a review processes will be
conducted with forest managers in the Loreto, Ucayali,
San Martín and Madre de Dios regions in order to
consolidate a proposal for Serfor and the regional
authorities in the Peruvian Amazon.







Source:ITTO'  Tropical Timber Market Report

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