African exporters find their European business has been improving in terms of both volume and price signaling a solid foundation to demand. For the past two or three years EU importers have very carefully managed stock levels of tropical timbers but as the economies in some EU member states improve there has been an increase in timber consumption for infrastructure projects, housing and renovation works which encouraged importers to expand stock levels.
West and Central African plywood production and export is relatively small in terms of world trade but demand and price levels in the traditional European markets have been sustained in spite of the recent weakening of Asian panel prices.
FOB price stability underpinned as SE Asian log supply falls
West African FOB log prices have remained stable in spite of the low demand from the main buyer; China. Log harvest levels have been reduced and there has been a degree of trading between domestic companies in order to adjust supply and avoid a build-up of log stocks.
The current FOB price stability for West and Central African logs has been underpinned by rising SE Asian log FOB prices. In Sabah and Sarawak, for example, log availability has fallen in recent months.
Fears linger in Middle East over shipment of low priced SE Asian sawnwood
There are no signs of a recovery in demand for logs or sawnwood for the Chinese market and this has prompted millers to cut production or temporarily close the mills.
The short-term prospects for prices depend now on buying activity for the EU and Middle East markets. Analysts report that Middle East buyers still have lingering fears of an overall weakening of prices due to some low priced material being shipped from SE Asia and this has resulted in them holding back on future contracts until the situation becomes clear.
Log Export Prices
West Africa logs, FOB | € per m³ | ||
Asian market |
LM
|
B
|
BC/C
|
Acajou/ Khaya/N'Gollon |
230
|
230
|
160 |
Ayous/Obéché/Wawa |
260
|
260
|
180
|
Azobe & Ekki |
230
|
230
|
160
|
Belli |
250
|
250
|
-
|
Bibolo/Dibétou |
150
|
145
|
|
Iroko | 330 |
290
|
260
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 220 |
220 |
160 |
Moabi | 335 | 305 | 225 |
Movingui | 210 |
210
|
160
|
Niove |
160
|
160
|
-
|
Okan |
250
|
250 |
-
|
Padouk |
310
|
285 |
225
|
Sapele | 320 |
310 |
220 |
Sipo/Utile |
345
|
340 |
265
|
Tali | 320 | 320 |
-
|
Sawnwood Export Prices
West Africa sawnwood, FOB |
€ per m³
|
|
Ayous | FAS GMS | 410 |
Bilinga | FAS GMS | 500 |
Okoumé | FAS GMS |
370
|
Merchantable | 225 |
|
Std/Btr GMS | 270 |
|
Sipo | FAS GMS |
610
|
FAS fixed sizes | 610 |
|
FAS scantlings | 640 |
|
Padouk | FAS GMS | 930 |
FAS scantlings | 980 |
|
Strips | 680 |
|
Sapele | FAS Spanish sizes | 610 |
FAS scantlings | 620 |
|
Iroko | FAS GMS | 610 |
Scantlings | 690 |
|
Strips |
440
|
|
Khaya | FAS GMS |
450
|
FAS fixed |
460
|
|
Maobi | FAS GMS |
610
|
Scantlings |
630
|
|
Movingui | FAS GMS |
420
|