Myanmar: Sawnwood market slow

  • March 19, 2010
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 4466
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Traders are saying that the market for sawn teak is very slow, enquiries are being received but firm orders are not being realised.

Price drives Indian purchases
Teak logs, on the other hand, are in demand especially in India but the catch in this market is ‘reasonable price’. If teak log prices are right for the Indian market then buying is active. This was reflected in last month’s log auctions.

Grade VII logs are the most popular.
Pyinkado log stocks are currently being shipped out to make room for the newly harvested logs in the log yards. Buyers of the Pyinkado logs say shipment will be made when the sales contracts are released by the authorities.

River transport of Gurjan
Gurjan logs from the four preferred areas Momeik, Mawlaik, Monywa, and Mabein (known as the 4 M area) have to be floated down the Chindwin and the Ayeyarwadi rivers. These rivers will become more navigable in a couple of months when the snow melts in the mountains and river levels rise.

At the moment there is still a lot of log rafts and barges waiting to be moved. Most will be sent to the auction depots after the Myanmar New Year in April. The market for Gurjan may become more active in April when more buyers are expected to bid for the fresh logs. Analysts say that Gurjan prices usually go down after April. Gurjan logs are also shipped out in comparatively large quantities from southern Tanintharyi (mainly Myeik formerly known as Mergui) just before the onset of the South-West Monsoon during which the sea becomes too rough.

Myanmar

Myanmar Log Prices (natural forests)
Teak Logs, FOB
€ Avg per Hoppus Ton
(traded volume)
Veneer Quality
Jan
Feb
2nd Quality
-
-
3rd Quality
-
5,050
(2 tons)
4th Quality
3,646
(10 tons)
4,259
(9 tons)
Sawing Quality
   

Grade 1 (SG-1)
2,483
(36 tons)
2,865
(34 tons)
Grade 2 (SG-2)
2,181
(41 tons)
2,291
(41 tons)
Grade 3 (SG-3)
-
-
Grade 4 (SG-4)
1,681
(226 tons)
1,780
(222 tons)
Grade 5 (SG-5) Assorted
1,316
(145 tons)
1,379
(180 tons)
Grade 6 (SG-6) Domestic
1,159
(65 tons)
664
(175 tons)
Grade 7 (ER-1)
732
(183 tons)
611
(306 tons)
Grade 8 (ER-2) -
533
(14 tons)
Short Logs 6 ft. / 7 ft.
-
-

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.

Hardwood log Prices (FOB)

€ per Hoppus Ton
Pyinkado (export)
486 (70 tons)
Gurjan (keruing-exp) 218 (682 tons)
Tamalan 567 (31 tons)
In-gujan
-
Yamane (export)
-
All prices are per hoppus ton Euro FOB, equivalent to 1.8 cu.m