Central/West Africa: Clarification on Gabon log ban
At a recent meeting with Gabon’s Minister for Forests,
executives of the country’s timber industries were advised
of the official position concerning the ban on the export of
logs that was introduced as from 1st January 2010. The
meeting was told that the ban is irrevocable.
During the discussions estimates were provided of current
log stocks. These indicate that the volume of logs already
cut in the forest, in the industry log yards and those logs
currently being transported by rail and road is in the order
of 500,000 to 600,000 cubic metres.
It has been reported that logs that are already at the port and in storage yards (rail storage and SEPBG storage yards) can be exported immediately by industry to fulfill existing contract commitments. Other log stocks can be exported, but only through the State agency SNBG and not directly by the industry. The existing log stocks can be exported only up until the 30th April 2010. After that date all log exports are banned. The meeting heard that government policy is now to be geared towards downstream processing, beyond sawn lumber and veneers into finished products. It is expected the industry will have to move into the production of mouldings, components and semi-finished products. It was reported that government is now considering ideas for preferential customs tariffs, import and exports tax incentives and other revenue incentives to attract inward investment into downstream processing facilities.
As previously reported, some producers are now considering re-starting work to complete the construction of mills that were in the course of construction and reopening others that were closed because of the downturn in sawn lumber and veneer markets.
Relaxed log exports
The Cameroon government’s relaxation of exports of secondary log species from 5% up to a notional 30% of production is said to be in response to industry concerns over difficult market conditions for sawn lumber that has led to revenues falling below break-even point in the industry.
Mills cut production
Congo Brazzaville has a tightly controlled quota system allowing only 25% of total log production to be exported against 75% that must be domestically processed. Because of the current worldwide downturn in the sawnwood markets, some operators have been forced to reduce total production as they are unable to sell the full 75% as milled sawnwood.
Logs from Equatorial Guinea
Equatorial Guinea had previously implemented a total log export ban but it is now reported that some log exports are now being allowed. However, this is not likely to be of significant volume.
No market disruption
So far as can be determined, the Gabon log ban has not caused any major disruption in the market. Modest price increases for okoume logs and for okan have been reported but prices for all other timbers have not moved to any large extent. The Cameroon government action in releasing for export a larger proportion of production, plus the now clarified position for 3 months of log exports coming from Gabon seems to have held the market prices stable. The clarification of the situation in Gabon now gives importers time to assess where and how to source future log supplies and how their processing industries will have to adapt to changing circumstances, much as the European trade has done in that past decade by drastically reducing log imports.
Central/West Africa
It has been reported that logs that are already at the port and in storage yards (rail storage and SEPBG storage yards) can be exported immediately by industry to fulfill existing contract commitments. Other log stocks can be exported, but only through the State agency SNBG and not directly by the industry. The existing log stocks can be exported only up until the 30th April 2010. After that date all log exports are banned. The meeting heard that government policy is now to be geared towards downstream processing, beyond sawn lumber and veneers into finished products. It is expected the industry will have to move into the production of mouldings, components and semi-finished products. It was reported that government is now considering ideas for preferential customs tariffs, import and exports tax incentives and other revenue incentives to attract inward investment into downstream processing facilities.
As previously reported, some producers are now considering re-starting work to complete the construction of mills that were in the course of construction and reopening others that were closed because of the downturn in sawn lumber and veneer markets.
Relaxed log exports
The Cameroon government’s relaxation of exports of secondary log species from 5% up to a notional 30% of production is said to be in response to industry concerns over difficult market conditions for sawn lumber that has led to revenues falling below break-even point in the industry.
Mills cut production
Congo Brazzaville has a tightly controlled quota system allowing only 25% of total log production to be exported against 75% that must be domestically processed. Because of the current worldwide downturn in the sawnwood markets, some operators have been forced to reduce total production as they are unable to sell the full 75% as milled sawnwood.
Logs from Equatorial Guinea
Equatorial Guinea had previously implemented a total log export ban but it is now reported that some log exports are now being allowed. However, this is not likely to be of significant volume.
No market disruption
So far as can be determined, the Gabon log ban has not caused any major disruption in the market. Modest price increases for okoume logs and for okan have been reported but prices for all other timbers have not moved to any large extent. The Cameroon government action in releasing for export a larger proportion of production, plus the now clarified position for 3 months of log exports coming from Gabon seems to have held the market prices stable. The clarification of the situation in Gabon now gives importers time to assess where and how to source future log supplies and how their processing industries will have to adapt to changing circumstances, much as the European trade has done in that past decade by drastically reducing log imports.
| 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 |
190
|
190
|
125
|
| Belli |
230
|
230
|
-
|
| Bibolo/Dibétou |
140
|
130
|
|
| Bubinga |
550
|
490
|
390
|
| Iroko |
257
|
250
|
200
|
| Okoume (60% CI, 40% CE, 20% CS) |
200
|
-
|
-
|
| Moabi |
270
|
270
|
206
|
| Movingui |
165
|
135
|
125
|
| Niove |
130
|
130
|
-
|
| Okan |
220
|
220
|
122
|
| Padouk |
315
|
295
|
235
|
| Sapele |
200
|
195
|
150
|
| Sipo/Utile |
260
|
240
|
190
|
| Tali |
230
|
225
|
114
|
| Okoume |
C1 160 |
CE150 |
CS115 |
| West Africa sawnwood, FOB |
€ per m³
|
|
| Ayous | FAS GMS |
300
|
| Okoumé | FAS GMS |
320
|
| FAS. fixed sizes |
320
|
|
| Std/Btr GMS |
260
|
|
| Sipo | FAS GMS |
475
|
| FAS fixed sizes | 320 |
|
| FAS scantlings |
490
|
|
| Padouk | FAS GMS |
540
|
| FAS scantlings |
430
|
|
| Strips |
300
|
|
| Sapele | FAS Spanish sizes |
360
|
| FAS scantlings |
460
|
|
| Iroko | FAS GMS |
430
|
| Scantlings |
440
|
|
| Strips |
350
|
|
| Khaya | FAS GMS |
380
|
| FAS fixed |
420
|
|
| Maobi | FAS GMS |
415
|
| Scantlings |
440
|
|
| Movingui | FAS GMS |
270
|