Malaysia: Furniture exports set to recover

  • March 19, 2010
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 7693
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Exports of Malaysian furniture are expected to reach RM10 billion for the current year according to the Malaysian Deputy Plantation Industries and Commodities Minister.
In 2009 furniture exports declined 12% to RM7.62 billion, while the decline of timber and rattan furniture, which constituted 84% of all furniture exports, fell just 7%.

Alternative materials for Malaysian furniture
The Forest Research Institute of Malaysia (FRIM) will promote several alternative materials as suitable raw materials for the furniture industry. FRIM will display these materials during the Malaysian International Furniture Fair (MIFF) 2010.
The objective in displaying the new raw materials is to help address raw material shortages facing the furniture manufacturing sector.
FRIM, the leading forestry research organization in Malaysia, is also a strategic business partner to the Malaysian timber industry. It has been in the forefront of research into fast growing tree species for the timber industry. FRIM is also an important centre for furniture testing.

Rubberwood from Thailand
The shortage of raw materials, particularly sawn rubberwood, in Malaysia has forced a number of manufacturers to purchase timber from neighbouring Thailand. However, competition for sawn rubberwood in Thailand is especially stiff as buyers for the Chinese market are active and placing huge orders.

Thailand consumes vast amounts of natural rubber for its production of vehicle tyres and automotive parts. Because of this strong demand and good prices for latex, rubber plantations are generating good returns and owners can keep the plantations standing, even when latex yields begin to decline. This is leading to a shortage of rubberwood logs.

Encouraging signs from EU buyers
Sawnwood producers and traders report encouraging news of orders originating from Europe. While the size of the orders do not indicate a major revival of the construction sector in the EU, these are being interpreted as indicating better demand for raw material for the manufacture of window and door frames.
Remodelling postponed
The financial crisis in Europe over the past two years resulted in many homeowners postponing planned remodelling or renovation work. As fears of another financial blow in the EU arising from the Greek economic situation fades, European homeowners are said to be showing signs of growing confidence and are looking to undertake repairs caused by storms over the past winter.
With news that prices of non-wood building material are set to rise, European consumers are reportedly reconsidering timber for reconstruction work. Analysts forecast a modest increase in purchases of plywood and a steady recovery in timber prices over the next few months.

Malaysia Log Prices
Malaysia Log Prices
Sarawak log, FOB US$ per m³
Meranti SQ up 228-252
Small
212-243
Super small
204-228
Keruing SQ up 217-229
Small
196-226
Super small
174-204
Kapur SQ up 207-232
Selangan Batu SQ up 185-222

Pen. Malaysia logs, domestic (SQ) US$ per m³
DR Meranti 234-253
Balau 299-328
Merbau 326-358
Rubberwood 62-96
Keruing 217-233
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
393-429
White Meranti A & up
282-312
Seraya Scantlings (75x125 KD)
433-446
Sepetir Boards
251-273
Sesendok 25,50mm
345-363
Kembang Semangkok
297-320

Malaysian Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
325-345
Merbau
454-506
Kempas 50mmx (75,100 & 125mm)
261-301
Rubberwood 25x75x660mm up
209-259
50-75mm Sq.
248-280
>75mm Sq.
270-299


Malaysia Plywood Prices
Malaysia ply MR BB/CC, FOB US$ per m³
2.7mm
404-466
3mm
384-414
9mm & up
331-403
Meranti ply BB/CC, domestic US$ per m³
3mm
330-421
12-18mm
314-343


Other Malaysia Panel Prices
Malaysia, Other Panels, FOB US$ per m³
Particleboard Export 12mm & up
227-250
Domestic 12mm & up
212-229
MDF            Export 15-19mm
280-311
Domestic 12-18mm
270-288


Malaysia Added Value Product Prices
Malaysia, Mouldings, FOB US$ per m³
Selagan Batu Decking
533-543
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
548-561
Grade B
501-511


Malaysia Furniture and Parts Prices
Malaysia, Rubberwood, FOB US$ per piece
Semi-finished dining table solid laminated top 2.5'x4', extension leaf
62-78
As above, Oak Veneer
69-83
Windsor Chair
61-63
Colonial Chair
59-64
Queen Anne Chair (soft seat) without arm
59-67
with arm
59-68
Chair Seat 27x430x500mm
47-52
Rubberwood Tabletop US$ per m³
22x760x1220mm sanded & edge profiled
Top Grade
573-606
Standard
557-576