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 |