In contrast to the slight fluctuations in sawnwood prices log prices have hardly been affected in the first months of the year. While demand is soft in the Chinese market producers say buyers are not pressuring for price reductions in the realisation that availability is an issue.
Forest authorities through-out West and Central African countries have strengthened control of harvest levels and this, along with news of the tight log supply situation in SE Asia, is serving to support log prices. Middle East markets continue to be very price conscious and constantly looking for an opportunity to buy at the best price for their domestic market which remains healthy.
Sawnwood export snapshot
Cameroon is the major supplier of sawn West African hardwoods to the EU but between 2011 and 2014 has seen its market share drop by around 18%; Ghana too has seen sales to the EU decline over the same period.
In contrast some other West African producer countries, notably Gabon, Côte d'Ivoire and Republic of Congo have achieved a growth in sawnwood sales to Europe.
Sipo makes a come-back
While sipo sawnwood prices are still soft due to poor demand, the fortunes of sapele have improved on the back of a modest improvement in interest from buyers. However, interest in the other red timbers has collapsed for now so producers are cutting back on milling of the redwoods to avoid a build-up of stocks.
Buyers for the Chinese market are reported to have returned with steady purchases but of uninspiring volumes since the landed stocks in China are still above what the market can absorb.
The Chinese economy is set to grow at a slower pace than over the past few years so it will take time for a new baseline to be established for volumes required in the housing and construction markets in the country.
In response to the recent abrupt slowing in the economy analysts anticipate a wave of stimulus measures from the Chinese government which likely herald a period of volatility for West African exporters.
Satisfying’ due diligence’ requirements
As countries in West and Central Africa negotiate VPAs with the EU trade is conducted based on meeting the „due diligence‟ requirements of the EUTR. Producers are now becoming more confident that they can satisfy the documentary requirements of importers in the EU.
The annual FLEGT Week was held last month and around 300 stakeholders representing EU member states, civil society, private sector, NGOs and experts met in Brussels to discuss progress on key topics such as forest governance, private sector engagement, drivers of deforestation and tracking timber legality. Participants contributed to setting new targets for the coming years, including the creation of synergies between FLEGT and other initiatives, and encouraging the private sector to participate in the debate on the legal and sustainable timber trade.
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 |
330
|
330
|
-
|
Bibolo/Dibétou |
150
|
145
|
|
Iroko | 330 |
290
|
260
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 240 |
240 |
160 |
Moabi | 335 | 305 | 225 |
Movingui | 210 |
210
|
160
|
Niove |
160
|
160
|
-
|
Okan |
250
|
250 |
-
|
Padouk |
300
|
275 |
210
|
Sapele | 360 | 360 | 270 |
Sipo/Utile |
380
|
380 |
255
|
Tali | 320 | 320 |
-
|
Sawnwood Export Prices
West Africa sawnwood, FOB |
€ per m³
|
|
Ayous | FAS GMS | 400 |
Bilinga | FAS GMS | 500 |
Okoumé | FAS GMS |
400
|
Merchantable | 225 |
|
Std/Btr GMS | 300 |
|
Sipo | FAS GMS |
610
|
FAS fixed sizes | 610 |
|
FAS scantlings | 660 | |
Padouk | FAS GMS | 860▲ |
FAS scantlings | 920▲ | |
Strips | 500 | |
Sapele | FAS Spanish sizes | 600 |
FAS scantlings | 600 |
|
Iroko | FAS GMS | 610 |
Scantlings | 645 |
|
Strips |
440
|
|
Khaya | FAS GMS |
450
|
FAS fixed |
470
|
|
Maobi | FAS GMS |
610
|
Scantlings |
615
|
|
Movingui | FAS GMS |
420
|