In the two weeks to the end of October Central and West African FOB prices remain largely unchanged with just one or two minor adjustments reflecting the slow demand in China. While demand from European buyers is, at best, moderate it is sufficient to provide a firm base for the current price levels.
Middle East importers and distributers report continued firm business although some importers are still inclined to limit the size of new contracts until they are more certain about how long current FOB prices can be maintained
Production of sapele for Chinese market scaled back
On the supply side, producers in Gabon continue to limit output and have indicated they will temporarily close sawmills if necessary to avoid building up stocks. Mills in Cameroon and the Central African Republic have limited production of sapele for China but there is ongoing demand from Europe and prices are stable.
Opportunities in India
India has become a major tropical log importer but shippers in Central and West Africa have not captured much of the market for logs in India except for plantation teak and some small quantities of gmelina.
The Indian government has ambitious plans to expand house building and this will result in increased demand for wood products and create opportunities for Central and West African producers.
Trade development between Africa and India was a feature of the Third India Africa Summit in New Delhi in late October. This summit was heralded as India’s most extensive interaction with African countries.
Africa's exports to India are smaller than to China but this could change as growth in China slows.
India’s bilateral trade with Africa has grown from a modest US$1 billion in 1995, to US$30 billion in 2008 and is now around US$60 billion.
African exports to India have been growing faster than Indian exports to Africa and six countries, Nigeria, South Africa, Angola, Egypt, Algeria and Morocco account for most Africa’s exports, mainly due to trade in oil, gas and minerals.
For other African countries India benefits from a trade surplus. Timber exporters in Africa would seem to have an opportunity beyond teak exports in the Indian 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) | 210▼ |
205▼ |
160 |
Moabi | 335 | 305 | 225 |
Movingui | 210 |
210
|
160
|
Niove |
160
|
160
|
-
|
Okan |
250
|
250 |
-
|
Padouk |
310
|
285 |
225
|
Sapele | 305 |
305 |
220 |
Sipo/Utile |
345
|
340 |
265
|
Tali | 320 | 320 |
-
|
Sawnwood Export Prices
West Africa sawnwood, FOB |
€ per m³
|
|
Ayous | FAS GMS | 410 |
Bilinga | FAS GMS | 500 |
Okoumé | FAS GMS |
350▼
|
Merchantable | 225 |
|
Std/Btr GMS | 270 |
|
Sipo | FAS GMS |
610
|
FAS fixed sizes | 610 |
|
FAS scantlings | 640 |
|
Padouk | FAS GMS | 930 |
FAS scantlings | 1000 |
|
Strips | 680 |
|
Sapele | FAS Spanish sizes | 610 |
FAS scantlings | 620 |
|
Iroko | FAS GMS | 610 |
Scantlings | 690 |
|
Strips |
440
|
|
Khaya | FAS GMS |
450
|
FAS fixed |
460
|
|
Maobi | FAS GMS |
610
|
Scantlings |
630
|
|
Movingui | FAS GMS |
420
|