Myanmar: Teak market
Teak log prices fluctuated with news of possible price cuts in March 2010. Instead, the Myanmar Timber Enterprise (MTE) proposed higher teak and pyinkadoe prices in May.
According to some analysts, the MTE should harvest smaller volumes of teak and other hardwoods to adjust supply and prevent excessive price fluctuations. Log traders have been requesting the MTE to provide timely information on prices and volumes in order to improve market transparency.
Non-teak hardwoods
Normally at this time of the year, fresh Gurjan logs are already available, pushing aside the old logs from the market. Instead, due to hot and dry weather conditions this year, the rivers are difficult to access, hampering log transportations by rafts and barges. As a result, fresh Gurjan logs are waiting upcountry to be transported and older Gurjan logs are still sold in the Yangon depot.
The demand for pyinkadoe logs remains strong. Some buyers report that resale prices for pyinkado are around US$900 per cu.m for the smaller girths and over US$1000 per cu.m for the larger girths.
Lessons from ASEM Conference
The recent ASEM Conference on Forest, Forest Governance and Timber Products Trade held in Cambodia generated new ideas among members of the trade on how to attract buyers particularly from the West. The local timber industry has high stocks of teak lumber as a result of poor demand caused by the recession and economic sanctions. Some in the wood industry believe that the adoption of the EU FLEGT scheme could ease this situation.
Vietnam’s annual forest product exports totalling US$3 billion could be an inspiration for Myanmar to become and important timber processor in the region. However, analysts point out that Myanmar needs to be more determined in reaching the long-term objective of exporting less logs and creating more processing capacity.
Myanmar
Myanmar Log Prices (natural forests)
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 differ due to quality or girth at the time of the transaction.
Lessons from ASEM Conference
The recent ASEM Conference on Forest, Forest Governance and Timber Products Trade held in Cambodia generated new ideas among members of the trade on how to attract buyers particularly from the West. The local timber industry has high stocks of teak lumber as a result of poor demand caused by the recession and economic sanctions. Some in the wood industry believe that the adoption of the EU FLEGT scheme could ease this situation.
Vietnam’s annual forest product exports totalling US$3 billion could be an inspiration for Myanmar to become and important timber processor in the region. However, analysts point out that Myanmar needs to be more determined in reaching the long-term objective of exporting less logs and creating more processing capacity.
Myanmar Log Prices (natural forests)
| Teak Logs, FOB |
€ Avg per Hoppus Ton
(traded volume) |
||
| Veneer Quality |
Mar
|
Apr
|
|
| 2nd Quality | nil | 6,501 (3 tons) |
|
| 3rd Quality | 6,001 (5 tons) |
5,639 (4 tons) |
|
| 4th Quality | 4,899 (10 tons) |
5,038 (12 tons) |
|
| Sawing Quality | |
||
| Grade 1 (SG-1) | 3,105 (39 tons) |
3,054 (41 tons) |
|
| Grade 2 (SG-2) | 2,600 (37 tons) |
2,656 (41 tons) |
|
| Grade 3 (SG-3) | nil | nil |
|
| Grade 4 (SG-4) | 2,005 (217 tons) |
1,749 (217 tons) |
|
| Grade 5 (SG-5) Assorted | 1,408 (181 tons) |
1,259 (68 tons) |
|
| Grade 6 (SG-6) Domestic | 1,244 (58 tons) |
1,084 (103 tons) |
|
| Grade 7 (ER-1) | 905 (103 tons) |
807 (189 tons) |
|
| Grade 8 (ER-2) | nil (-) |
605 (3 tons) |
|
| Short Logs 6 ft. / 7 ft. |
nil | nil |
|
Prices differ due to quality or girth at the time of the transaction.