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Slowdown in Asian and Middle East markets Milling operations and the import of spare parts are running without disruptions and there are sufficient log stocks, mainly in Okoume, to meet current demand. Mid-August holidays coincided with independence celebrations along with presidential and community elections in Gabon. Containers are readily available and stuffing operations are running smoothly but rail transport is slow because priority is given to manganese exports, however, this has not created delays at the ports. The authorities in Gabon are strictly enforcing truck weight limits which have meant a change in trucking of the heavy species. Producers in Gabon say order levels are about normal but the slowdown in Asian and Middle East markets is noticeable. Mills depend on log stocks during rain season Port operations at Douala port are said to be running normally but there are reports of issues because of expansion work at the Kribi Deep Seaport. Order books good for the next two months in Congo Congo is in a dry period at present which favours harvesting. However, heavy rains in the north have caused delays in production and have disrupted transportation especially on the laterite roads. Transport by rail is generally good with logs are being transported to Pointe Noire first by river to Brazzaville and then by rail to Pointe Noire. Operations in Pointe Noire are said to be normal and shipments are getting away on time. Export market snapshot Demand in the Philippines has softened with buyers focusing on high quality timbers from mills providing quality sawnwood. Okoume purchases in the Middle East are showing signs of a slowdown but analysts say landed stocks are adequate for now. Demand in Europe is said to be stable with an encouraging and consistent demand for moabi and douka for the door and furniture industries. Passenger services remain suspended on Transgabonais railway Electronic VAT invoicing planned in Gabon
2. GHANA Exports to ECOWAS countries fall For the same period in 2022 total wood products totalled Total air-dried sawnwood exports up to April 2023 were During the period under consideration nine ECOWAS In spite of the weak export performance the overall
Countries that contributed to the higher AUP in early 2023 France was the major importer of Ghana’s air-dried boules Ghana parliament passes Wildlife Resources The WRM Bill seeks to revise and consolidate all laws The Bill gives legal backing to local communities in In a statement published on the Ministry’s website the Government extended its appreciation and commendation to all its stakeholders and key actors for their inputs and support throughout the review process and final passage of the Bill into a new legislation. See: https://mlnr.gov.gh/index.php/wildlife-resources-management-bill-2022-passed/ Minister inaugurates 10-member COP 28 committee In his address the Minister said the government has assumed a leading role in discussions on climate change and there are expectations for the country to contribute immensely to the policy ideas and initiatives on the climate at COP28. The Chairman of the committee, Hon. Benito Owusu-Bio, who is also the Deputy Minister for MLNR welcomed the challenge and assured that the committee will deliver professionally. He also promised to provide the necessary leadership for Ghana to have a successful participation and to highlight the importance of COP28 for Ghana’s climate action plans. Ghana became the second African country after Mozambique to receive payments for reducing emissions from deforestation and forest degradation (carbon credits) from a World Bank trust fund. World Bank ‘tree crop’ support The funding is expected to enable the Tree Crops Development Authority (TCDA)
to undertake research and development of different varieties of tree crops
including rubber.
3. MALAYSIA
4. INDONESIA August export benchmark
prices The new HPE are for veneers packing boxes, wood in chips or particles and sawn timber with a cross-sectional area of 1,000 sq. mm to 4,000 sq. mm of merbau and teak. The following is a list of Timber HPE for August
2023 Processed wood which is leveled on all four sides so that the surface becomes even and smooth from Merbau wood (Intsia sp) with a cross-sectional area of more than 4,000 sq.mm to 10,000 sq.mm (ex.4407.29.91 and ex.4407.29.92) US$1,500/cu.m. See: https://forestinsights.id/harga-patokan-ekspor-hpe-kayu-bulan-agustus-beberapa-jenis-produk-naik/ Acacia dominated log production in 2022 The total volume of acacia production was 49% of the total national log production or 31.54 million cubic metres. Second was mixed tropical hardwood at 26.10 million cubic metres (40% of total production). The others were meranti, ebony and other types of wood contributing less than 10% of national log production. The BPS also stated that log production is distributed across all islands in Indonesia. The island of Sumatra recorded the largest log production at 43.5 million cubic metres, or 67% of total log production, followed by Kalimantan which contributed 17% of log production. Production in Java was just over 18 million cubic metres or around 15% of national production. Indonesia, Malaysia, EU task force on
deforestation regulation meets for first time The co-chairs underscored their aim is to seek common interests between producers and consumers of plantation. The Ad Hoc JTF will establish a dialogue and relevant work streams led by the respective governments to build mutual understanding on the implementation of the regulation. The meeting also agreed to the terms of reference for the Ad Hoc JTF which includes work on issues such as inclusivity of smallholders in the supply chain, relevant national certification schemes (land legality and cut-off date for deforestation), traceability from producer to end-consumer, scientific data on deforestation and forest degradation and protection of data. The Ad Hoc JTF will conclude its work by the end of 2024, its term could be extended upon mutual agreement. and Minister - Concerns on EUDR country risk
categorisation Indonesia has conducted efforts to oppose the EUDR mainly through multilateral forums in WTO Committees such as the Committee on Agriculture, Council for Trade in Goods, Committee on Market Access and Committee on Trade on Environment. See: https://www.kompas.id/baca/ekonomi/2023/08/01/eudr-dinilai-hambat-perdagangan Small-holder union to help farmers comply with
EU deforestation law Mansuetus Alsy Hanu, Secretary-General of SKPS said that the launch of the foundation was timely as oil palm smallholders need support to cultivate their crops while protecting forests. Smallholders have expressed concern that they will be unable to meet the requirements of the newly introduced EUDR which requires farmers to provide evidence that their crop was not grown on recentlt deforested land. The foundation will provide both monetary and non-monetary support to farmers including how to follow deforestation-free and sustainable best practices. These include establishing traceability of products, recognition of customary forests and the processing and marketing of non-timber forest products. Minister of Trade meets the EU-ABC delegation The Minister also held discussions with the delegation regarding trade policies such as exports and imports, electronic commerce (e-commerce) and international trade. In addition, the development of the ongoing Indonesia-EU CEPA (European Union Comprehensive Economic Partnership Agreement) negotiations was also discussed. See: https://www.kemendag.go.id/berita/foto/mendag-ri-menerima-kunjungan-delegasi-eu-abc and Indonesia and UK strengthen collaboration The meeting addressed issues related to trade in agricultural commodities between Indonesia and the UK, small farmers and certification, trade commitments in the agricultural sector and climate change issues. Hartarto said it is important for the UK to understand and fully acknowledge national sustainability standards to create conditions for improved market access for sustainably produced products in the UK. He also emphasised Indonesia's various commitments in trading agricultural commodities and addressing climate change, including the country's efforts towards sustainable plantation. The cooperation between the two countries in legally and sustainably managing timber and wood products is demonstrated by the Forest Law Enforcement, Governance and Trade - Voluntary Partnership Agreement (FLEGT - VPA) which has been in effect since December 2018. Agreement on carbon trading "This provides the legal basis for the exchange and use of carbon trading data through the National Registry System for Climate Change”. Siregar noted this is an important step and will lead to other collaborations in the field of human resources (HR), information exchange, promotion, outreach and roadshows throughout the country and overseas to inform the public and the market of the existence of Indonesia’s carbon stock exchange. In a written statement the Canadian Minister congratulated Indonesia for starting to implement Carbon Economic Values. Furthermore, Guilbeault offered cooperation in the exchange of information and knowledge in the application of carbon emission trading and carbon economic values. Indonesia also received appreciation from the United Nations Environment Programme (UNEP). This appreciation was provided at a bilateral meeting between Minister Siti and the UNEP Executive Director, Inger Andersen. Andersen said UNEP especially appreciates Indonesia's leadership in dealing with environmental issues related to deforestation, lake management, reducing mercury through the Minamata Convention and handling plastic waste. Sanctions on exporters violating foreign
exchange regulations If Bank Indonesia finds exporters are violating the export earnings regulation then it will send notices to the Directorate General of Customs which will impose administrative sanctions on the exporters. The sanctions will take the form of export services suspension. Importance of down-streaming in boosting the
economy He added that Indonesia would be able to become a developed country by fulfilling two conditions: optimising its demographic bonus to develop human resource quality and implementing the downstream policy in various industries. The government has been down-streaming nickel which has resulted in an increase in the employment rate in Southeast Sulawesi and North Maluku. 5. MYANMAR
New Myanmar currency note Weakening Kyat a challenge in loan repayment The ruling State Administration Council and the cooperative societies are reportedly having difficulty in repaying this dollar denominated loan as the dollar exchange rate jumped to 3,400 Kyats against the dollar. The US dollar exchange rate was around 1,000 Kyat when the Cooperative Ministry borrowed this US$400 million. UOB cuts ties with counterpart banks in Myanmar It is reported that UOB indicated to the banks in Myanmar that it would restrict all incoming and outgoing payments to and from Myanmar accounts allowing funds to be moved only between accounts held with the bank. UOB also announced tough new curbs on Visa card and Mastercard transactions for Myanmar individuals and banks which would restrict their dealings only to accounts within UOB. The new UOB framework will reportedly begin 1 September this year. Financial sector commentators are bracing for similar action by two of Singapore's other big banks , OCBC and DBS. See: https://asia.nikkei.com/Spotlight/Myanmar-Crisis/Key-Singapore-bank-UOB-moves-to-cut-off-Myanmar Extension of State Emergency The military administration has already extended the state of emergency three times, each for six months, with the latest extension marking the fourth. The military drafted constitution allows only two six-month extensions and it requires the authorities to hold elections within six months of a state of emergency being lifted. 6. INDIA Obituary Ramkrisna was once Chairman of the Plywood and Allied Products Panel of Chemicals and Allied Products Export Promotion Council and Vice-Chairman of Capexil for the Western Region. He was also President of All India Timber Importers Association, Committee Member of the Timber Development Association of India, the All India Wood Products Exporters Association, Member of the Indian Society of Foresters, Indian Academy of Wood Science and the Bombay Timber Merchants Association. He was an active member of the Teaknet steering committee and of the ITTO Trade Advisory Group. The Teaknet website has an extended obituary at: 7. VIETNAM
Wood and wood product (W&WP) trade highlights The WP exports contributed US$4.9 billion, down 30% year-on-year. Pine imports in June 2023 reached 69,000 cu.m, worth US$15.4 million, up 1.5% in volume and 11% in value compared to May 2023. Compared to June 2022 pine imports decreased by 35% in volume and 49% in value. In the first 6 months of 2023, pine imports amounted to 279,400 cu.m, worth US$61.1 million, down 44% in volume and 57% in value over the same period in 2022. Vietnam's exports of rattan, bamboo and other non-wood forest products (NTFPs) in June 2023 recorded the highest level over the past 1 year, reaching US$68,135 million, up 10% compared to May 2023 and up 9.5% compared to June 2022. After 9 consecutive months of decline this is the first month that the NTFP exports increased year-on-year. Over the first 6 months of 2023 Vietnam's NTFP exports totalled US358 million, down 25% over the same period in 2022. Export orders tilt higher as buying for year end
begins The Department of Forestry reported that forestry product exports amounted to an estimated US$6.42 billion in the first six months of the year, a 29% year-on-year decrease with wood and wood product exports dropping by 29% to US$5.96 billion. A preliminary survey by the Handicraft and Wood Industry Association of Ho Chi Minh (HCM) City (HAWA) found that export orders fell by around 30% at the start of the year but began to recover in July ahead of the global market year-end furniture shopping season. Speaking at the Vietnam Wood and Furniture Industry Forum held by HAWA in HCM City, Phạm Phú Ngọc Trai, chairman of Global Integration Business Consultants, said the current reduction in export orders is temporary and the furniture industry has considerable growth potential for the next five to ten years. Compared to global GDP that forecast growth of 3% this year the world furniture industry's compounded growth rate is expected to be 4.5%. According to Statista Market Insights the world furniture market may reach US$766 billion in 2023 and is estimated to hit approximately US$932 billion by 2027. Vietnam ranks among the world's five largest wooden furniture exporters underlining its solid internal resources. Nguyễn Quốc Khanh, Chairman of HAWA shared a similar view stating that woodworking firms showcased their business integration initiative. During market downturns, businesses remained proactive by reorganising production and streamlining operations to reduce costs while also seeking support from trade promotion agencies to explore new markets. Khanh pointed out a new trend in the woodworking industry, where significant furniture brands from Vietnam are expanding into promising export markets, notably super-rich countries in the Middle East such as Saudi Arabia and Dubai with an eye on supplying products to new up-market real estate projects. With the industry's internal strength and the return of orders the industry's export target for 2023 is considered attainable, said Khanh. Experts at the forum emphasised the importance of businesses strengthening their internal resources to be prepared for orders to rebound in a recovering market and embrace green transformation to improve competitiveness. Trai said Vietnamese businesses will face new demands such as the EU's Carbon Border Adjustment Mechanism (CBAM), effective from October 2023. Goods imported into the European market may incur additional costs if they fail to adopt a lower-emission production model and earn carbon credits. See: https://www.csis.org/analysis/analyzing-european-unions-carbon-border-adjustment-mechanism Planted forests Phạm Thị Ngọc Thủy, Director of the Private Economic Development Research Board, pointed out that challenges related to the European Union Timber Regulation (EUTR) and net-zero goal will push Vietnam's wood and forest product processing industry in a more positive direction, encouraging further outreach and attracting foreign investment. See: https://vietnamnet.vn/en/wooden-products-begin-to-get-export-orders-again-after-lull-2172636.html Wood industry will struggle to achieve export
target In the first 6 months of 2023 exports of wood and wood products reached US$6.1 billion, down 28% over the same period in 2022. In which, the export of wood products reached US$4.1 billion, down 32% over the same period in 2022. The recent global economic recession lead to a plummeting of orders. As a result Vietnam's exports of wood and wood products to major markets in the first half of 2023 dropped sharply. Exports to the US accounted for 54% of the total export value of wood and wood products, reaching US$3.3 billion, down 33% compared to the same period in 2022. The sharp decline of orders from the US makes the target of US$18 billion sales in 2023 unachievable. According to the Import-Export Department recovery of the timber industries will depend on many factors including the stability of the global economy, especially the key export markets for wood and wood products such as USA and EU and with promoting export support measures and exploiting market expansion opportunities. Speaking at a meeting Mr. Ngo Sy Hoai, Vice President and Secretary General of the Vietnam Timber and Forest Products Association (VIFORES) said the wood industry in recent years has recorded high achievements and made a breakthrough to become one of the world's major exporters and wood processing centres. However, in the first half of 2023 exports of wood products dropped sharply. The decline in exports of wood and wood products resulted from a steep drop in demand in some main markets such as the US due to a drop in consumer purchasing power. In addition the wood industry has faced anti-dumping and anti-subsidy investigations since 2020 but, up to now, after seven reviews the US Department of Commerce has not yet issued a final decision. However, according to Mr. Ngo Sy Hoai, the current difficulties are only temporary and global demand for wood products is still growing so there opportunities. To limit the decline and maintain growth targets Mr. Ngo Sy Hoai suggested solutions are needed for Vietnamese products to have global brand recognition. Vietnam has signed many FTAs such as VPA/FLEGT Agreement, also known as the Voluntary Partnership Agreement between the European Union and Vietnam on forest law enforcement, forest governance and trade in forest products. Also, Vietnam entered into a bilateral agreement with the United States to address the complete removal of illegally harvested timber from the supply chain. At the same time it is effectively implementing the EU regulatioms. A representative of the Vietnam Timber and Forest Products Association said that, at the national level, the solutions mainly focus on improving the business environment and enhancing the competitiveness of enterprises but more solutions are needed for Vietnamese wood to build their brand name in the global market. The Vietnamese Government, businesses and the people of Vietnam have shaken hands to promote green growth and green development, contribute to the formation of a responsible wood industry and contribute to a reduction of global deforestation. According to Mr. Ngo Sy Hoai, because of the order shortage many businesses have reduced the workforce and cut working hours so as to maintain a minimal level of production to wait for demand to recover. With positive demand signals in the US market businesses must be well prepared to ramp up production. 8. BRAZIL Timber sector in the
spotlight in southern Brazil The Union of Timber, Sawmills, Carpentry, Framing, Joinery, Furniture, Plywood and Veneer, Particleboard and Wood Fiber Sheets Industries SINDIMADEIRA – RS in the State of Rio Grande do Sul has highlighted the economic and social benefits the timber industry brings to the region, adding that it is crucial to find a balance between economic development and promoting sustainable practices to ensure the long-term preservation of natural forests. The timber sector can attract investments, new businesses and boost research and innovation in the area, benefiting the local economy, workers and entrepreneurs involved. See: https://www.sindimadeirars.com.br/noticias_int.php?id=2834 Operations to combat environmental crimes in the
Amazon This initiative includes the mobilisation of security agents in strategic operations on waterways, on land and in the air. This is part of the operations called the "Curupira" and "Amazônia Viva". In addition, there has been investment in equipping of the Public Security River Group (Grupamento Fluvial de Segurança Pública - Gflu) linked to the Secretariat of Public Security and Social Defense (Secretaria de Segurança Pública e Defesa Social - Segup) with the installation of the Integrated Public Security River Base "Antônio Lemos" in the Marajó island aimed at reducing deforestation and environmental crimes in the State. Since the beginning of the operations, there have been significant seizures of timber, weapons and machinery and a strengthening of the commitment of the government of Pará to reduce deforestation and, above all, to advance in the preservation of the environment. Global teak study Producers from about 80 countries that trade teak are participating in the study which is supported by the Food and Agriculture Organization of the United Nations (FAO) and the International Union of Forest Research Organizations (IUFRO) through its Special Programme for Capacity Development (IUFRO-SPDC). In Brazil, the coordination is under the responsibility of EMBRAPA Florestas (Brazilian Agricultural Research Corporation). The objective is to compile national level data without disclosing specific information on public entities or private companies. The study is a continuation of work carried out by FAO in 2012 and will update information on global teak resources and markets. The results will be published in 2024. These results are expected to facilitate a better assessment of the importance of teak resources and the international teak trade providing policy makers and investors with a better understanding of the important role teak is playing today in providing raw material for industries and the contribution to national economies. Expanding the border strip of the legal Amazon Recently, the Amazon Plan - Security and Sovereignty (Amas) was launched, which aims to develop public security action in the states of the Legal Amazon (Acre, Amapá, Amazonas, Maranhão, Mato Grosso, Pará, Roraima, Rondônia and Tocantins). Thirty-four integrated bases will be set up by State and Federal Police. Funding for this plan, an amount of R$2 billion, will come from the National Public Security Fund and the Amazon Fund. See: https://forestnews.com.br/governo-ampliar-fronteira-amazonia-legal/
9. PERU Wood product exports fell
in the first five months of 2023 Of the amount exported, France was the major market accounting for 21% of exports but in the first five months sales dropped 15%. China was the second largest market accounting for 19% of wood product exports, however, in the first five months of this year exports were down almost 40%. Mexico and the Dominican Republic were the third and fourth placed export destinations accounting for 15% and 11% respectively. Semi-manufactured products earned US$20.1 million during the first five months of the year, down 30% year on year. The main market was France (48%) but export earnings were down 12% compared to the same period last year. The second most important market for semi-manufactured products was Belgium with a 13% share of the total followed by China with a 12% share. During the first five months of the year the sawnwood subsector exported US$8.1 million, a decrease of 21% year on year. The three main destinations for sawnwood were China, the Dominican Republic and Mexico. In the furniture and parts sub-sector, exports amounted to US$1.47 million but this was 23% less than in the same period of 2022. The main destination market was the US accounting for almost 60% of sub-sector sales but some 33% less than a year ago followed by Italy and Spain. Reactivation of the Loreto wood manufacturing
sector The visit culminated in a meeting to coordinate action for the benefit of manufacturing businesses in the wood sector in the Loreto and Ucayali regions. Alex Ochoa Landa, Head of the Competitiveness Unit travelled to the native community of San Antonio de Pintuyacu - Alto Nanay where there is manufacturing of utilitarian and decorative items. The regional specialist also participated in a meeting on the Exchange of Experiences and Identification of Investments for Optimisation, Marginal Expansion, Rehabilitation and Replacement (IOARR) programme related to wooden school furniture. SERFOR – the shihuahuaco and tahuarí action plan For this it presented the Action Planto allied institutions such as the Forest and Wildlife Supervision Agency (OSINFOR), the Ministry of the Environment (MINAM) and the Ministry of Production (PRODUCE) as well as the Forestry Board which is led by the Ministry of Economy and Finance and brings together various public and private stakeholders in the forestry sector. As a result of the meetings it was agreed that joint work plans with the technical teams of the General Directorate of Biological Diversity of MINAM and the Directorate of Supervision and Forest and Wildlife Inspection of OSINFOR should be prepared. SERFOR has consulted with universities in the design of training courses for the botanical and anatomical identification of both forest species. |
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Source:ITTO'
Tropical Timber Market Report
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