Ghana: Q4 timber contracts
Data available from the Timber Industry Development
Division of the Forestry Commission (TIDD) indicates
that contracts for a volume of 94,369 cubic metres (down
17% Qtr on Qtr) and 2,475 pieces of furniture parts were
processed and approved for export during the fourth
quarter of 2009.
There was a sharp increase in furniture parts export as a result of two major parts shipments for the Togolese market undertaken by Portal Limited, a Takoradi based timber firm. The TIDD report indicates that Mim Scanstyle Ltd, once the major furniture parts exporter, submitted almost no contracts for export approval during the same period.
In the fourth quarter 2009 there were declines in almost all the major export wood products with the exception of Finger Jointed/Laminated products, for which exports (3,696 cubic metres) increased by 39% compared to the previous quarter.
There were also declines in export volumes of sawnwood, plywood, plantation poles/billets/logs, sliced veneer, rotary veneer and mouldings compared to the previous quarter.
Sawnwod continued to be the leading export wood product from Ghana, contributing 47% of the total volume of exports in the quarter.
Overall there were no changes in prices during the quarter under review. Prices were stable for most of the wood products.
Though the global economic crisis, which led to a meltdown of prices for wood products for most of 2009, has eased, Ghana’s exporters of wood products still find it difficult to achieve prices above the TIDD Guiding Selling Prices (GSP).
Prices of Mahogany (Khaya ivorensis), which is the main sawnwood species for the US market, started to show signs of improvement during the fourth quarter of 2009. Most contract prices approved were at around US$750 per cubic metres, with a few achieving as high as US$800 per cubic metre. Prices in the previous quarter were in the range of US$720 per cubic metre, well below the average GSP level of US$860 per cubic metre.
China a major buyer
China is becoming one of the most important markets for Ghana’s wood products, especially for high density sawnwood species. The majority of contracts for Denya submitted for approval by the TIDD during the fourth quarter 2009 were for the Chinese market. Prices were in the region of US$400 per cubic metre. Previously, the best average price was around US$350 per cubic metre.
Nigeria imports plywood
Nigeria continued to be the major consumer of Ghana’s plywood during the quarter under review. Due to the depreciation of the US Dollar against the Euro, many Nigerian buyers complained that the TIDD GSP for plywood was on the high side, though TIDD prices quoted in Euros had not changed.
New forest plan
According to a Ghana News Agency report, the Forestry Commission is to update management plans for all forest reserves in the country.
Apparently, plans over twenty forest reserves in the country have been earmarked as pilot areas. Four pilot areas namely, Nsuensa-Bediako, Esukawkaw, Pra- Anuonand and Worebong South are in the Eastern Region. At a 2-day planning workshop held to introduce a draft management plan for the Nsuensa-Bediako Forest Reserve, the Eastern Regional Forestry Manager, Mr. J E Manu, said he wanted to bring all stakeholders in the sector together for discussion on the plan to ensure the effective and sustainable management of forest reserves. Mr Manu said the Nsuensa-Bediako Forest Reserve management plan was written in 1959 to cover a period of five years but there had been no review undertaken since.
Ghana Log Prices
There was a sharp increase in furniture parts export as a result of two major parts shipments for the Togolese market undertaken by Portal Limited, a Takoradi based timber firm. The TIDD report indicates that Mim Scanstyle Ltd, once the major furniture parts exporter, submitted almost no contracts for export approval during the same period.
In the fourth quarter 2009 there were declines in almost all the major export wood products with the exception of Finger Jointed/Laminated products, for which exports (3,696 cubic metres) increased by 39% compared to the previous quarter.
There were also declines in export volumes of sawnwood, plywood, plantation poles/billets/logs, sliced veneer, rotary veneer and mouldings compared to the previous quarter.
Sawnwod continued to be the leading export wood product from Ghana, contributing 47% of the total volume of exports in the quarter.
Overall there were no changes in prices during the quarter under review. Prices were stable for most of the wood products.
Though the global economic crisis, which led to a meltdown of prices for wood products for most of 2009, has eased, Ghana’s exporters of wood products still find it difficult to achieve prices above the TIDD Guiding Selling Prices (GSP).
Prices of Mahogany (Khaya ivorensis), which is the main sawnwood species for the US market, started to show signs of improvement during the fourth quarter of 2009. Most contract prices approved were at around US$750 per cubic metres, with a few achieving as high as US$800 per cubic metre. Prices in the previous quarter were in the range of US$720 per cubic metre, well below the average GSP level of US$860 per cubic metre.
China a major buyer
China is becoming one of the most important markets for Ghana’s wood products, especially for high density sawnwood species. The majority of contracts for Denya submitted for approval by the TIDD during the fourth quarter 2009 were for the Chinese market. Prices were in the region of US$400 per cubic metre. Previously, the best average price was around US$350 per cubic metre.
Nigeria imports plywood
Nigeria continued to be the major consumer of Ghana’s plywood during the quarter under review. Due to the depreciation of the US Dollar against the Euro, many Nigerian buyers complained that the TIDD GSP for plywood was on the high side, though TIDD prices quoted in Euros had not changed.
New forest plan
According to a Ghana News Agency report, the Forestry Commission is to update management plans for all forest reserves in the country.
Apparently, plans over twenty forest reserves in the country have been earmarked as pilot areas. Four pilot areas namely, Nsuensa-Bediako, Esukawkaw, Pra- Anuonand and Worebong South are in the Eastern Region. At a 2-day planning workshop held to introduce a draft management plan for the Nsuensa-Bediako Forest Reserve, the Eastern Regional Forestry Manager, Mr. J E Manu, said he wanted to bring all stakeholders in the sector together for discussion on the plan to ensure the effective and sustainable management of forest reserves. Mr Manu said the Nsuensa-Bediako Forest Reserve management plan was written in 1959 to cover a period of five years but there had been no review undertaken since.
| Ghana Log Prices |
||||
| Ghana logs, domestic | US$ per m³ | |||
| Up
to 80 cm |
80cm+ | |||
| Wawa | 120-130 | 140-155 | ||
| Odum Grade A |
160-170 |
175-185 | ||
| Ceiba | 100-110 | 115-125 | ||
| Chenchen | 85-100 | 105-120 | ||
| Khaya/Mahogany (Veneer Qual.) | 95-105 | 110-135 | ||
| Sapele Gradea A |
135-150 | 155-175 |
||
| Makore (Veneer Qual.) Grade A | 125-135 | 140-166 | ||
| Ghana Sawnwood
Prices |
||||
| Ghana Sawnwood, FOB | US$ per m³ | |||
| FAS 25-100mm x 150mm up x 2.4m up |
Air-dried | Kiln-dried | ||
| Afrormosia | 855 | - | ||
| Asanfina |
500 | 545 | ||
| Ceiba | 205 | 255 | ||
| Dahoma |
300 | 390 |
||
| Edinam (mixed redwood) |
400 | 430 |
||
| Emeri | 330 | 400 | ||
| African mahogany (Ivorensis) |
595 | 665 |
||
| Makore |
520 | 585 | ||
| Niangon |
490 | 595 | ||
| Odum |
650 | 710 | ||
| Sapele |
540 |
600 | ||
| Wawa 1C & Select |
250 | 290 | ||
| Ghana sawnwood, domestic |
US$ per m³
|
|||
| Wawa | 25x300x4.2m |
247 | ||
| Emeri | 25x300x4.2m | 325 | ||
| Ceiba | 25x300x4.2m |
220 | ||
| Dahoma |
50x150x4.2m |
285 | ||
| Redwood |
50x75x4.2m |
295 | ||
| Ofram |
25x225x4.2m |
310 | ||
| Ghana Veneer Prices |
||||
| Rotary Veneer, FOB | US$ per m³ | |||
| CORE (1-1.9mm) | FACE (<2mm) | |||
| Bombax |
315 | 350 |
||
| Kyere, Ofram, Ogea & Otie | 315 | 350 | ||
| Chenchen | 315 | 360 | ||
| Ceiba | 325 | 345 | ||
| Mahogany | 415 | 450 | ||
| The above prices are for full sized panels, smaller sizes minus 15%. Thickness below 1mm would attract a 5% premium. | ||||
| Rotary Veneer, FOB Core Grade 2mm & up | US$ per m³ | |||
| Ceiba | 260 | |||
| Chenchen, Ogea & Essa | 295, 295, 288 | |||
| Ofram | 300 | |||
| Slices Veneer, FOB | US$ per m² | |||
| Face | Backing | |||
| Afrormosia | 1.19 |
1.00 | ||
| Asanfina | 1.50 | 0.80 | ||
| Avodire | 1.27 | 0.90 | ||
| Chenchen | 1.25 | 0.54 | ||
| Mahogany | 1.42 | 0.89 | ||
| Makore | 1.40 | 0.90 | ||
| Odum | 1.80 | 1.15 | ||
| Ghana Plywood Prices | ||||
| Plywood, FOB | US$ per m³ | |||
| B/BB, Thickness | Redwoods | Light Woods | ||
| WBP | MR | WBP | MR | |
| 4mm | 560 | 475 | 500 | 370 |
| 6mm | 340 | 325 | 335 | 300 |
| 9mm | 365 | 305 | 295 | 275 |
| 12mm | 300 | 295 | 280 | 270 |
| 15mm | 310 | 300 | 280 | 270 |
| 18mm |
300 |
290 | 285 |
265 |
| Grade AB/BB would attract a premium of 5%. BB/BB would be 5% less, C/CC 10% less and CC/CC 15% less. | ||||
| Ghana Added Value Product Prices | ||||
| Parquet flooring 1st | FOB € per m² | |||
| 10x60x300mm | 10x65-75mm | 14x70mm | ||
| Apa | 12.00 | 14.47 | 17.00 | |
| Odum | 7.80 | 10.20 | 11.00 | |
| Hyedua | 13.67 | 13.86 | 17.82 | |
| Afrormosia | 13.72 | 18.22 | 17.82 | |
| Grade 2 less 5%, Grade 3 less 10% | ||||