Malaysia: Ensuring continued access to the EU timber market

  • June 18, 2010
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 5490
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The Timber Exporters’ Association of Malaysia (TEAM) has urged the federal government to sign the Voluntary Partnership Agreement (VPA) under the Forest Law Enforcement, Governance and Trade (FLEGT) Action Plan with the European Union (EU) in order that Malaysia can gain wider access to the EU timber market. To date, Ghana, the Republic of Congo and Cameroon have signed VPAs with the EU.

Access to the EU timber market is becoming a critical issue for Malaysian timber producers. Due to the debt crisis in Europe, the Euro has weakened against the Malaysian Ringgit. This has the effect of making Malaysian exports more expensive.

Sabah furniture manufacturers seek relief from high costs
Furniture exporters from Sabah in East Malaysia complain that their market position is at risk due to high production costs, increasing ocean freight charges, unreliable power supply and tight raw material supplies.
The reason for the complaint is that the fee for a furniture export license is RM5,000 in Sabah, compared to only RM200 in West Malaysia. The EU market, which accounted for some 90% of Sabah’s furniture exports has weaken and as a result, Sabah's position as the nation's leading outdoor furniture exporter is at risk.
Furniture manufacturers from Sabah are also seeking aid from the federal government to compensate for production losses caused by power blackouts.

Malaysia Log Prices
Malaysia Log Prices
Sarawak log, FOB US$ per m³
Meranti SQ up 232-256
Small
215-246
Super small
207-231
Keruing SQ up 221-233
Small
201-231
Super small
179-209
Kapur SQ up 211-236
Selangan Batu SQ up 191-228

Pen. Malaysia logs, domestic (SQ) US$ per m³
DR Meranti 238-257
Balau 303-332
Merbau 333-365
Rubberwood 68-102
Keruing 222-238
Peninsular Malaysian meranti logs are top grade and are used for scantlings for the EU. Their prices are higher than Sarawaks.


Malaysia Sawnwood Prices
Malaysia Sawnwood, FOB US$ per m³
DR Meranti
396-432
White Meranti A & up
284-314
Seraya Scantlings (75x125 KD)
436-449
Sepetir Boards
253-275
Sesendok 25,50mm
347-365
Kembang Semangkok
304-327

Malaysian Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
327-347
Merbau
461-513
Kempas 50mmx (75,100 & 125mm)
261-301
Rubberwood 25x75x660mm up
215-265
50-75mm Sq.
254-286
>75mm Sq.
276-305


Malaysia Plywood Prices
Malaysia ply MR BB/CC, FOB US$ per m³
2.7mm
411-473
3mm
391-421
9mm & up
338-410
Meranti ply BB/CC, domestic US$ per m³
3mm
334-425
12-18mm
318-347


Other Malaysia Panel Prices
Malaysia, Other Panels, FOB US$ per m³
Particleboard Export 12mm & up
230-253
Domestic 12mm & up
215-232
MDF            Export 15-19mm
283-314
Domestic 12-18mm
273-291


Malaysia Added Value Product Prices
Malaysia, Mouldings, FOB US$ per m³
Selagan Batu Decking
539-549
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
554-567
Grade B
507-517


Malaysia Furniture and Parts Prices
Malaysia, Rubberwood, FOB US$ per piece
Semi-finished dining table solid laminated top 2.5'x4', extension leaf
64-80
As above, Oak Veneer
71-85
Windsor Chair
63-65
Colonial Chair
61-66
Queen Anne Chair (soft seat) without arm
61-69
with arm
61-70
Chair Seat 27x430x500mm
49-54
Rubberwood Tabletop US$ per m³
22x760x1220mm sanded & edge profiled
Top Grade
580-613
Standard
564-584