The following prices were recorded for teak log sales during competitive bidding on 21st and 24th June 2013 during the 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.
In addition to the grades mentioned in the table above teak logs of other specifications are available. Some 8 tons of short logs measuring length 6 feet to 7 feet girth were sold at an average price of US$1900 per ton hoppus measure.
Log-ends with lengths less than 5 feet are also sold and during the recent tender the average price for this specification was US$1225 per ton hoppus measure. Short logs and log ends are usually by-products accumulated from cross-cutting high quality veneer logs.
Short logs and log-ends are usually purchased by domestic or Thai buyers.
Apart from Teak, other hardwoods are not attracting much demand despite the likelihood of a log export ban being introduced in April 2014.
Demand for teak logs is subdued at present as buyers are not expanding stocks any further. Buyers from China and India are not very active which has led to weakening demand
Resource contracts could be renegotiated
Mizzima news ran a story recently saying a leading US think tank mentioned that the Myanmar government plans to renegotiate billions of dollars of natural resource deals to impose tougher environmental standards.
It added that Myanmar is a candidate to join the Extractive Industries Transparency Initiative, which seeks to set international standards in countries with major resource revenues.
South Korean firms bidding for business
The Irrawaddy News reported in its Business Roundup that a South Korean trade delegation, led by Finance Minister Hyun Oh-seok, visited Myanmar amid reports that the Korean government intended to triple its development aid and loans to US$100 million.
Korean firms are bidding for contracts to help develop the planned new Yangon airport at Hanthawaddy (near Bago).