There were no price changes in the second half of August and Central and West African producers report that while overall demand is holding up, what little demand there was from buyers for the Chinese market has now dried–up. In China demand for okoume logs and sawnwood has collapsed and even demand for the „redwood‟ timbers is extremely slow.
Buyers for China are pessimistic and say they do not know when business will improve suggesting the weak demand could stretch until year end or even into the first quarter of next year.
As a result of poor demand prospects Central and West African producers are cutting back on log harvests and reducing sawnwood production. For once the heavy rains which are affecting forest operations in Cameroon are not disrupting either milling or shipping schedules as demand is so low.
Purchases for Middle Eastern, Indian and EU markets balancing losses in China
In contrast to weak demand in China, business in Middle East markets remains positive with steady demand at current price levels in spite of strong competition from SE Asian suppliers.
Demand in Europe is proving better than expected given it is still the holiday season. Some producers are optimistic that there will be an increase in demand through to year end. In terms of individual species, shippers of sipo and sapele have seen moderate demand levels so prices remain holding firm.
Importers in India are actively buying their favoured species, belli and padauk. Analysts encourage West and Central African shippers to actively target this market
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 |
300
|
280
|
-
|
Bibolo/Dibétou |
150
|
145
|
|
Iroko | 330 |
290
|
260
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 235 |
235 |
160 |
Moabi | 335 | 305 | 225 |
Movingui | 210 |
210
|
160
|
Niove |
160
|
160
|
-
|
Okan |
250
|
250 |
-
|
Padouk |
310
|
285 |
225
|
Sapele | 320 |
320 |
240 |
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 | 280 |
|
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
|