India: latest prices for teak, sawnwood and plywood

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Approximately 50,000 cubic metres of teak logs are sold annually through auctions in the State of Kerala. The state has a wide network of timber depots where auctions are regularly held.

TeakNet and its Coordinator Dr. M.Sivaramhave reported the latest teak price trends. When compared with prices in 2005 and 2009 the current upswing in prices is rather severe as illustrated in the table below.

Prices for plantation grown teak logs from Kerala are shown below. Prices are per cubic metre Ex-depot.

  2005 2009 current
Teak I B 45,500 128,940 193,500
Teak I C 39,000 75,244 157,500
Teak II A 46,000 85,800 117,500
Teak II B 40,000 93,046 115,100
Teak II C 31,000 53,667 90,000
Teak III A 34,500 72,905 77,598
Teak III B 29,000 58,644 82,433
Teak III C 21,500 41,819 62,236

                                                                                                                                                 Prices for imported plantation teak

Fluctuations in Indian rupee continue but the level of plantation teak imports continues unchanged a reflection of the firm demand in the country. Plantation teak prices are shown in the following table.

  US$ per m3
Tanzania Teak sawn 350-700
Côte d'Ivoire logs 450-750
PNG logs 400-575
El-salvador logs 350-650
Guatemala logs 330-500
Nigeria squares 300-450
Ghana logs 300-650
Guyana logs 300-450
Benin logs 350-600
Benin sawn 700-800
Brazil squares 350-600
Colombia logs 350-750
Togo logs 350-500
Ecuador squares 300-500
Costa Rica logs 380-650
Panama logs 350-550
Sudan logs 400-700
Congo logs 450-550
Kenya logs 450-500
Thailand logs 350-450
Trinidad and Tobago logs 380-550
Uganda logs 550-650
Laos logs 300-450

Price variations are based on quality, length of logs and the average girth.

Domestic ex-sawmill prices for air dried sawnwood cut from imported logs. Price per cubic foot is shown below.

Ex-mill prices for sawnwood

Sawnwood, (Ex-mill) (AD) Rs. per ft3
Red Meranti
Radiata Pine (AD)
White wood

                                                                                                                                               Slowing demand continues to hold down price structures.

Domestic prices for Myanmar teak processed in India

Slowing demand has resulted in relatively stable price structures.

Sawnwood (Ex-mill) Rs. per ft3
Myanmar Teak (AD)  
Export Grade F.E.Q.
Plantation Teak A grade
Plantation Teak B grade
Plantation Teak FAS grade

Price variations depend mainly on length and cross section of sawn pieces

Prices for imported sawnwood

Ex-wharehouse prices for imported kiln dry (12% mc.) sawnwood per cu.ft are shown below

Sawnwood, (Ex-warehouse) (KD) Rs per ft3
Beech 1300-1350
Sycamore 1300-1400
Red oak 1500-1650
White Oak 1600-1800
American Walnut 2300-2400
Hemlock clear grade 1300-1400
Hemlock AB grade 1100-1200
Western Red Cedar 1600-1650
Douglas Fir 1200-1300

Price variations depend mainly on length and cross section.

Plywood prices

Domestic demand for plywood continues to grow.

Plywood, Rs per sq.ft
Ex-warehouse. (MR Quality)  
4 mm 32.00
6 mm 47.00
12 mm 71.35
15 mm 84.25
18 mm 101.25

                                                                                                                                           Domestic ex-warehouse prices for locally manufactured MR plywood

Locally Manufactured
Plywood “Commercial
Rs per sq.ft
  Rubberwood Hardwood
4mm Rs.15.65 Rs.25.00
6mm Rs.23.50 Rs.34.00
8mm Rs.29.60 Rs.38.10
12mm Rs.35.25 Rs.44.50
19mm RS.49.50 Rs.61.25
5mm Flexible ply Rs.33.00  

                                                                                                                                                Indian companies eye overseas plantation resources

Ensuring adequate and uninterrupted supplies of raw materials at reasonable cost has become the key focus for all wood based industries in India.

As the number of enterprises increases and as others increase capacity the problem of raw material supply increases. Companies are realising that the best solution is to have their own plantations.

Several Indian companies have sought to invest in Malaysia, Myanmar and Vietnam and have plantations and manufacturing capacity in those countries.

Taking up the challenge is India’s JK Paper Mills which, reports suggest, is discussing large scale plantation development with the Government of Myanmar.

The company is also considering establishing a paper mill with a 70,000 tonne annual capacity. The total investment is said to be worth around US$ 30 million.

At its home base in India, JK Paper Mills has extended its activities and in August its new plant at Raygada in Odisha will start production (pulp mill capacity of 215,000 t/yr and paper capacity about 150,000 t/yr).

This will lift the paper production capacity from the present 290,000 to 450,000 tonnes a year. The company’s total wood requirement last year was 474,000 tonnes with 35-40 per cent coming from its own plantations.

Because of the additional production capacity the company will have to source a further 200,000 tonnes of raw material. It is noteworthy that over the past year the cost of domestic pulp wood increased 35%.

Revised ‘Affordable Housing in Partnership’ scheme

When addressing REALTY 2013, the Confederation of Indian Industry (CII) conference on real estate on August 2, Dr Girija Vyas, Union Minister of Housing and Urban Poverty Alleviation said the aim of the soon to be revised ‘Affordable Housing in Partnership’ (AHP) scheme is to provide half a million houses to economically weaker and lower income groups.

Through this scheme, the government intends to encourage partnerships between various agencies such as the central and state government housing boards, development authorities, local urban bodies and industry for creation of affordable housing.

The scheme will provide several supply side as well as demand side incentives such as concessions on development charges, service tax and direct tax exemptions, encouragement to foreign investment in affordable housing and reduced stamp duties.

Business confidence slips in June

Indian companies became more pessimistic about the economy in the second quarter as the business confidence index dropped slightly from levels in the first quarter.

The New Delhi based Associated Chambers of Commerce and Industry reported that more than 50% of respondents to their recent survey now feel the economic situation has worsened.

The main factors negatively affecting industry were stated as weak domestic and international demand, the weakening rupee, the high cost of credit, rising prices for raw materials and wage increase pressures.

“The current situation calls for urgent policy initiatives both by the Reserve Bank of India and the central government to rescue Indian industry from further deterioration as it may significantly impact employment and consumer demand,” said a spokesperson from the Associated Chambers of Commerce and Industry.

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