Central/West Africa: Slow Start to year
The harsh winter weather in northern importing countries
has been the biggest influence on the timber trade in the
first weeks of 2010. Business is slow in most areas.
In Europe many companies closed for up to two weeks
over the Christmas and New Year period and the difficult
weather conditions with snow, ice and below freezing
temperatures are affecting resumption of normal working
of factories, schools and offices and building activity.
Although most consumer countries have technically
moved out of recession, there remain financial problems
especially in UK. Economists, as well as ordinary people,
are aware of a tough year ahead with prospects of higher
taxes and lower trade levels.
In the W. African timber trade the present situation appears to be of not quite at a standstill but flat, with little interest reported from buyers in chasing up new purchases. Log prices have not moved over the past four weeks and there are few indications as to how the markets will develop in the first quarter. Sawn lumber prices also have held very steady over the past few weeks although traded volumes have been low and business continues at low levels.
Gabon keeps trade waiting
The uncertain position in relation to the announced ban on log exports by Gabon has, if anything, exacerbated the near standstill in the timber sector. After the ban was announced buyers did immediately begin seeking alternative log sources but have held back until there is clarification on the details of the ban. The SEPBG, the port authority in Gabon has apparently halted all loading of ships until the situation is made clear. There are rumors that consideration is being given to allowing the export of logs already cut until the end of March. Other rumours hint of heavy felling to have logs on the ground in the hope that felled logs could be exported in a grace period. Other sources hint at a possible strengthening of existing regulations which require a commitment to invest in local processing before log exports are allowed. However, all this is pure speculation by the trade.
Exports of non-premium logs On the supply side, the unexpected but timely relaxation of exports of logs of non-premium species from Cameroon may well have been a stabilising factor for the W. African trade. It remains to be seen if log exports from Liberia will resume in any meaningful volume during 2010. Logs are still exported from Congo Brazzaville and lately also from the Democratic Republic of Congo. Whether these countries can fill the supply gap resulting from a Gabon ban is far from clear.
China would be the consumer country most affected in the short term but no doubt would look to increase log purchases from other countries such as Papua New Guinea and Solomon Islands, though this would have to be in alternative species some of which would not be a substitute for okoume for peeling. In the medium term the Gabon sawmills and plymills will have to resume or step up to full production and place much more emphasis on marketing their processed timbers. This will not be easy given the slow market conditions for processed timbers over the past 18 months. In the meanwhile mills in Ghana and Cameroon have been working under capacity and might well have a market advantage, being able to quickly increase production in response to any increase in demand.
Central/West Africa
In the W. African timber trade the present situation appears to be of not quite at a standstill but flat, with little interest reported from buyers in chasing up new purchases. Log prices have not moved over the past four weeks and there are few indications as to how the markets will develop in the first quarter. Sawn lumber prices also have held very steady over the past few weeks although traded volumes have been low and business continues at low levels.
Gabon keeps trade waiting
The uncertain position in relation to the announced ban on log exports by Gabon has, if anything, exacerbated the near standstill in the timber sector. After the ban was announced buyers did immediately begin seeking alternative log sources but have held back until there is clarification on the details of the ban. The SEPBG, the port authority in Gabon has apparently halted all loading of ships until the situation is made clear. There are rumors that consideration is being given to allowing the export of logs already cut until the end of March. Other rumours hint of heavy felling to have logs on the ground in the hope that felled logs could be exported in a grace period. Other sources hint at a possible strengthening of existing regulations which require a commitment to invest in local processing before log exports are allowed. However, all this is pure speculation by the trade.
Exports of non-premium logs On the supply side, the unexpected but timely relaxation of exports of logs of non-premium species from Cameroon may well have been a stabilising factor for the W. African trade. It remains to be seen if log exports from Liberia will resume in any meaningful volume during 2010. Logs are still exported from Congo Brazzaville and lately also from the Democratic Republic of Congo. Whether these countries can fill the supply gap resulting from a Gabon ban is far from clear.
China would be the consumer country most affected in the short term but no doubt would look to increase log purchases from other countries such as Papua New Guinea and Solomon Islands, though this would have to be in alternative species some of which would not be a substitute for okoume for peeling. In the medium term the Gabon sawmills and plymills will have to resume or step up to full production and place much more emphasis on marketing their processed timbers. This will not be easy given the slow market conditions for processed timbers over the past 18 months. In the meanwhile mills in Ghana and Cameroon have been working under capacity and might well have a market advantage, being able to quickly increase production in response to any increase in demand.
| West Africa logs, FOB | € per m³ | ||
| Asian market |
LM
|
B
|
BC/C
|
| Acajou/ Khaya/N'Gollon |
205
|
205
|
153
|
| Ayous/Obéché/Wawa |
190
|
190
|
145
|
| Azobe & Ekki |
185
|
185
|
115
|
| Belli |
230
|
230
|
-
|
| Bibolo/Dibétou |
140
|
130
|
|
| Bubinga |
500
|
460
|
390
|
| Iroko |
257
|
250
|
200
|
| Okoume (60% CI, 40% CE, 20% CS) |
190
|
-
|
-
|
| Moabi |
270
|
270
|
206
|
| Movingui |
165
|
135
|
125
|
| Niove |
130
|
130
|
-
|
| Okan |
195
|
195
|
122
|
| Padouk |
310
|
290
|
235
|
| Sapele |
200
|
195
|
150
|
| Sipo/Utile |
260
|
240
|
190
|
| Tali |
230
|
225
|
114
|
| West Africa sawnwood, FOB |
€ per m³
|
|
| Ayous | FAS GMS |
300
|
| Fixed sizes | 396 | |
| Okoumé | FAS GMS |
290
|
| Sel. & Bet. GMS Italy |
215
|
|
| Sel. & Bet. fixed sizes |
290
|
|
| Sipo | FAS GMS |
475
|
| FAS fixed sizes | - |
|
| FAS scantlings |
490
|
|
| Padouk | FAS GMS |
540
|
| FAS scantlings |
555
|
|
| Strips |
355
|
|
| Sapele | FAS Spanish sizes |
390
|
| FAS scantlings |
460
|
|
| Iroko | FAS GMS |
430
|
| Scantlings |
440
|
|
| Strips |
350
|
|
| Khaya | FAS GMS |
380
|
| FAS fixed |
420
|
|
| Maobi | FAS GMS |
440
|
| Scantlings |
455
|
|
| Movingui | FAS GMS |
270
|