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Report
from the UK
Housing market cools despite price rises
While the Department of Communities and Local Government (DCLG) noted the slight price rise of
housing in October, the overall housing market continued to cool during the month. The DCLG said
prices rose by 0.1% compared to 0.3% in September. The annual rate of house
price inflation was 11.3%, up from 10.8% the previous month. The average figure during the August to October
2007 period fell to 11.1%. House sales have also stalled due to the credit squeeze and the proximity to the
Christmas holidays.
Timber traders expect end of year pressures
At the end of the year, many customary problems face the timber industry, including rising transport
costs, currency fluctuations and competition from other commodities such as concrete. Additionally,
the UK traders are under pressure to face up financially to the promotion of timber
and the need to rely on sustainability certificates from producer countries. Prices are falling in some exporting
countries due to lack of demand, but in the UK, currency variations, transport costs and inflation have caused prices
to remain firm or rising to meet customer demands.
EUROPE
MARKET and Scandinavia
Precious Woods to expand veneer plant in Gabon
EUWID said Swiss company Precious Woods AG has shut down operations of its TDI veneer plant in
Libreville, Gabon to expand the width of the plant in 2007. The company also faced suspension of
activities of its plant in Para, Brazil, due to delays in obtaining a harvest permit.
Despite these developments, the company¡¯s operating profits rose nearly USD4.5 million from the previous year.
Rougier expands sawmill capacity in Gabon
French timber group Rougier has opened its new sawmill in Gabon, said EUWID. The company started
building the mill in September 2006 where mainly okoume species are processed. The mill, which has a current log cutting
capacity of 14,000 m3, obtains raw materials from licensed areas in Haut-Abanga
and Ogoouelvindo. The construction of the new mill is part of the company¡¯s plan to expand its
value-adding activities in Africa. EUWID believes that the new investments are driven by restrictions on
log exports imposed by some African countries in recent months. In revised guidelines issued by the
Gabonese government, Rougier is allowed to export 90,000 m3 of logs, which
would make it Gabon¡¯s second largest exporter. The company¡¯s value added activities account for nearly 60%
of its overall business.
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