Ghana’s market performance improves in second quarter
10/10/2008 - 13:59
Prices of Ghana’s timber and wood products, particularly
teak logs and poles to India, improved by an average of
USD30/m³ during the second quarter of 2008. The price
rise was USD10/m³ more than the average of USD20/m³
in the first quarter. Harvesting from private teak
plantations accounted for about 70% of the teak contracts
approved during the second quarter.
While buyers adjusted prices of lumber upward to
compensate for the fall in the value of the US dollar vis-àvis
the euro, it was difficult to achieve the minimum
Guiding Selling Prices (GSP) for plywood and rotary
veneer, which form the bulk of exports to the American
markets. Prices of ceiba rotary veneer were down an
average of USD27/m³ when compared to the GSP of
USD382/m³.
TIDD Pricing Committee removed the 5% price rebate on
wood products to the US market, which had an impact on
prices of plywood and rotary veneer. It is anticipated that
buyers would gradually respond by adjusting prices
upward to achieve the GSP during the third quarter.
A new rotary veneer processing line has been installed by
John Bitar and Company Limited to manufacture rotary
veneer with a thickness of 1mm and below. The first
contract for the product was submitted to TIDD for
approval during the second quarter, with prices of
EUR1000/m³ for sapele/mahogany/edinam and
EUR650/m³ for koto.
Prices of air-dried dahoma lumber to the Middle East, the
main destination for this product, showed signs of
improvement from the current asking price of USD350/m³.
Prices of some contracts submitted for approval during the
second quarter were between USD370/m³ and
USD400/m³.
TIDD contract approval rises 25%
According to data from the Contract Section of the Timber
Industry Development Division (TIDD) of the Forestry
Commission of Ghana, a total contract volume of
196,201m³ was processed and approved during the second
quarter of 2008. This represented a 25% increase over
first quarter figures for 2008. Furniture parts processed
and approved during the second quarter dropped by 78.2%
to 11,948 pieces when compared to the first quarter.
The contract volumes for plywood, poles, billets and logs
increased sharply in the second quarter. Plywood rose
41.1% while poles/billets/logs jumped by 104.7% when
compared to the first quarter. Plywood contributed 34.1%
of the total contract volume during the period under
review, regaining its position as the highest contributor to
total approved contract volumes.
With the exception of lumber and furniture parts, which
dropped in volume 22.3% and 78.2% respectively when
compared to the first quarter, contract volumes rose for all
major exportable products. Compared to the previous
quarter’s figures, contracts for sliced veneer, rotary veneer, finger-jointed and dowels increased 47.4%, 36.9%,
82.8% and 77.8%, respectively, representing volumes of
13,636m³; 6,565m³; 5,532m³ and 192m³.
Ghana Log Prices
Ghana logs,
domestic
US$
per m³
Up
to 80 cm
80cm+
Wawa
100-115
120-145
Odum Grade A
160-170
175-185
Ceiba
90-100
105-120
Chenchen
60-88
90-112
Khaya/Mahogany (Veneer Qual.)
70-90
95-120
Sapele Gradea A
130-150
155-175
Makore (Veneer Qual.)
Grade A
125-135
140-166
Ghana Sawnwood
Prices
Ghana
Sawnwood, FOB
US$
per m³
FAS 25-100mm x 150mm up x 2.4m up
Air-dried
Kiln-dried
Afrormosia
855
-
Asanfina
490
560
Ceiba
200
255
Dahoma
330
390
Edinam (mixed redwood)
400
470
Emeri
425
485
African mahogany (Ivorensis)
585
670
Makore
510
585
Niangon
550
-
Odum
650
720
Sapele
540
600
Wawa 1C & Select
260
285
Ghana
sawnwood, domestic
US$ per m³
Wawa
25x300x4.2m
255
Emeri
25x300x4.2m
350
Ceiba
25x300x4.2m
204
Dahoma
50x150x4.2m
318
Redwood
50x75x4.2m
274
Ofram
25x225x4.2m
330
Ghana Veneer Prices
Rotary
Veneer, FOB
US$
per m³
CORE
(1-1.9mm)
FACE
(<2mm)
Bombax
315
350
Kyere, Ofram, Ogea & Otie
325
360
Chenchen
315
360
Ceiba
360
305
Mahogany
415
450
The
above prices are for full sized panels, smaller sizes minus 15%.
Thickness below 1mm would attract a 5% premium.
Rotary
Veneer, FOB Core Grade 2mm & up
US$
per m³
Ceiba
245
Chenchen,
Ogea & Essa
295
Ofram
305
Slices
Veneer, FOB
US$
per m²
Face
Backing
Afrormosia
1.80
1.00
Asanfina
2.00
0.80
Avodire
1.12
0.80
Chenchen
0.97
0.53
Mahogany
1.40
0.79 ⇓
Makore
1.40
0.90
Odum
1.66
1.00
Ghana Plywood Prices
Plywood,
FOB
US$ per m³
B/BB, Thickness
Redwoods
Light
Woods
WBP
MR
WBP
MR
4mm
560
475
500
365
6mm
340
325
335
285
9mm
380
300
290
270
12mm
300
300
280
255
15mm
310
280
300
260
18mm
300
280
285
250
Grade
AB/BB would attract a premium of 5%. BB/BB would be 5% less, C/CC 10%
less and CC/CC 15% less.
