Malaysia: Some progress in negotiations with EU on VPA

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ITTO's Tropical Timber Market Report
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The Malaysian Ministry of Plantation Industries and Commodities has indicated that some progress has been made in talks with the European Union (EU) concerning the Voluntary Partnership Agreement (VPA). The Ministry had emphasised that specific forestry laws apply in Peninsular Malaysia, Sabah and Sarawak and this must be appreciated before any agreement could be reached.

The Ministry is reportedly looking at the possibility of these regions signing the agreement at different times. While Peninsular Malaysia is apparently ready to sign the VPA, the states of Sarawak and Sabah have issues to be discussed, particular in relations to customary land rights of forest dwellers.

When the VPA is signed between Malaysia and the EU, the EU will provide a virtual “green lane” for certified Malaysian timber into the EU market. The EU Timber Regulation will come into force in March 2013 and this, when enforced, will close EU markets to timber from countries where there is a high risk of illegally harvested timber being traded.

Analysts point out that the VPA is crucial to Peninsular Malaysia as most of its timber products are exported to the EU, whereas Sarawak’s main markets are Japan and lately, India. However, without a VPA, value added products manufactured from Sarawak timbers in third countries will face problems entering the EU market.

The EU Timber Regulation, as well as the enforcement of the US Lacey Act, are triggering changes in both private and public procurement procedures and policies in other countries such as Japan and Australia.

The Ambassador and Head of Delegation of the EU to Malaysia has reportedly indicated that the entry of Malaysian timber and timber products into the EU to be facilitated under the VPA would enhance the image and competitiveness of Malaysian wood products in the EU.

Malaysia Log PricesMalaysia Log Prices

Sarawak log, FOB US$ per m³
Meranti SQ up 265-292
Small
253-286
Super small
255-279
Keruing SQ up 247-259
Small
238-271
Super small
227-251
Kapur SQ up 239-265
Selangan Batu SQ up 244-278
 
Pen. Malaysia logs, domestic (SQ) US$ per m³
DR Meranti 283-302
Balau 325-355
Merbau 378-409
Rubberwood 106-140
Keruing 247-263
Peninsular Malaysian meranti logs are top grade and are used for scantlings for the EU. Their prices are higher than Sarawaks.


Malaysia Sawnwood Prices

Malaysia Sawnwood, FOB US$ per m³
DR Meranti 413-449
White Meranti A & up
309-339
Seraya Scantlings (75x125 KD)
449-461
Sepetir Boards
277-306
Sesendok 25,50mm
363-381
Kembang Semangkok
344-373
 
Malaysian Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
346-366
Merbau
486-538
Kempas 50mmx (75,100 & 125mm)
290-330
Rubberwood 25x75x660mm up
237-288
50-75mm Sq.
276-308
>75mm Sq.
298-328



Malaysia Plywood Prices

Malaysia ply MR BB/CC, FOB US$ per m³
2.7mm
444-505
3mm
427-456
9mm & up
378-447
Meranti ply BB/CC, domestic US$ per m³
3mm
370-460
12-18mm
353-382



Other Malaysia Panel Prices

Malaysia, Other Panels, FOB US$ per m³
Particleboard Export 12mm & up
262-285
Domestic 12mm & up
253-267
MDF            Export 15-19mm
313-345
Domestic 12-18mm
305-324



Malaysia Added Value Product Prices

Malaysia, Mouldings, FOB US$ per m³
Selagan Batu Decking
576-586
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
590-603
Grade B
545-555



Malaysia Furniture and Parts Prices

Malaysia, Rubberwood, FOB US$ per piece
Semi-finished dining table solid laminated top 2.5'x4', extension leaf
79-95
As above, Oak Veneer
86-100
Windsor Chair
78-80
Colonial Chair
76-81
Queen Anne Chair (soft seat) without arm
78-87
with arm
78-88
Chair Seat 27x430x500mm
64-69
Rubberwood Tabletop US$ per m³
22x760x1220mm sanded & edge profiled
Top Grade
634-664
Standard
617-633


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