Central/West Africa: Exchange rates and market volatility on everyone’s mind

Fonte:
ITTO/Fordaq
Vizualizações:
2620
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The slight weakness in prices for sipo and sapele was reigned in over the past two weeks and there is no news of further price movements either up or down. On all producer’s minds is what effect the turmoil after the UK referendum will have on exports. The massive decline in the sterling exchange rate against the US dollar and euro could have a significant impact on exports. Sterling has recovered slightly from the lows immediately after the referendum but there is a risk that it will remain weakened for some time.

West and Central African producers price exports in euros for EU markets and so far there has been no pressure from buyers in either the EU or UK to lower prices and there has been no pressure (so far) from buyers outside of Europe for an adjustment of prices.

Apart from direct imports from African and other worldwide producer countries the UK importers also buy significant volumes of tropical timber from continental importers/stockists and if sterling remains at current levels then the landed costs of tropical timber in the UK will inevitably rise.

Buyers in no hurry to place orders

For now it is too early to predict how the different markets in EU member states will react to Brexit. Producers report a slight slackening in business for Europe but this is usual as the EU trade enjoys summer vacations. Analysts suggest buyers in UK and mainland Europe will be in no hurry to resume autumn purchases and that West and Central African exporters are bracing for a period of market uncertainty.

For the next two to three years (or maybe more) during the negotiations for the UK to exit the EU the UK will remain a member and it is too early to predict how markets will react. For UK timber traders a further complexity is the forecast slowdown in the construction industry as contractors and house builders are concerned over stability in the UK property 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
250
250
Bibolo/Dibétou
150
145
 
Iroko 330
290
260
Okoume (60% CI, 40% CE, 20% CS) (China only) 200 200 160
Moabi 335 305 225
Movingui 210
210
160
Niove
160
160
Okan
250
210
Padouk
345
285
225
Sapele 315 305 220
Sipo/Utile
330
310
265
Tali 310 310

 

Sawnwood Export Prices

West Africa sawnwood, FOB
€ per m³
Ayous FAS GMS 410
Bilinga FAS GMS 520
Okoumé FAS GMS
340
Merchantable 225
Std/Btr GMS 290
Sipo FAS GMS
600
FAS fixed sizes 600
FAS scantlings 610
Padouk FAS GMS 910
FAS scantlings 900
Strips 650
Sapele FAS Spanish sizes 595
FAS scantlings 600
Iroko FAS GMS 600
Scantlings 700
Strips
440
Khaya FAS GMS
450
FAS fixed
460
Maobi FAS GMS
610
Scantlings
630
Movingui FAS GMS
420

 

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