The following table illustrates the trend in teak log prices after the log export ban was proposed in October 2012.
Overseas buyers holding high levels of teak stocks
Analysts report that demand for teak logs is currently slow with India, the main buyer, apparently unable to absorb any further shipments at present. The market for pyinkado and gurjan is even quieter than that for teak.
With the log export ban due to come into force in April 2014, buyers in India and Thailand are reportedly already heavily overstocked. Teak shipments are moving slowly despite pressure from MTE on buyers to speed up shipments of logs that have been purchased.
Some analysts suggest that, at the rate the logs are currently being shipped, the log-stock in Yangon will not be moved before the log export ban commences.
Under these circumstances there could be unshipped logs when the log export ban comes into force but the MTE has not made public how it will deal with unshipped logs.
Reforms in Myanmar can lead to vibrant market economy
The World Economic Forum for East Asia was recently concluded in Nay Pyi Taw, the capital of Myanmar. The forum was attended by executives and policy makers from industry, government, academia and civil society from the around the world.
The New Light of Myanmar newspaper reported on the opening speech by President Thein Sein, in which he emphasised that the country is moving from military rule towards democracy; to end armed conflicts and to reform the economy to one based on free markets.
The Mizzima newspaper reported that in summing up the conclusions from the World Economic Forum the meeting co-chairs agreed that Myanmar and the Philippines are demonstrating the importance of driving reforms in response to peoples’ aspirations.
End May teak auction prices
The following prices were reported from competitive bidding for teak logs on 23rd and 27th May, the most recent Myanma Timber Enterprise tender.
|Grade||Quantity (Tons)||US$ per hoppus ton|
Hoppus ton=1.8m3; All grades, except SG-3/5/6, are length 8’ x girth 5’ &up. SG-3/4/6 are girth 4’ &up. SG-3 grade is higher than SG-4 but with lower girth and price. Prices vary due to quality and/or girth at the time of the transaction.