Log trade eases in West Africa
The recent frenetic log buying triggered by the Gabon log export ban appears to be easing off as buyers consolidate purchases and plan procurement and production for the reminder of the year.
This lull in buying also gives time for the authorities in Cameroon and Congo Brazzaville to review their regulations on log exports for the second half of the year.
Currently, small volumes of logs are also exported from the Democratic Republic of Congo and the Republic of Equatorial Guinea.
Hope for a rethink on log export policy
According to some sources, the government of Gabon is assessing the impact of the log export ban on the economics of timber extraction, in-country processing, exportation and forestry sector employment.
Optimists in the industry are hoping that the system discussed around two months ago to tie log export quota to in-country processing would be revived. However, officials have not given any indication that the total on log exports will be relaxed.
Earlier this year, the Gabon State Timber Export Inspection Agency (SNBG) was assigned to export logs felled prior to end of December 2009. If this state enterprise is to remain viable, it is possible that it would be the first choice as the agency to manage any resumption of log exports. As early as 2009, regulations on a log export quota tied to in-country processing were supposed to have come into effect. However, the global market downturn and weak demand, especially for sawnwood, left the authorities in Gabon with little economic choice but to continue log exports.
Sawnwood market remains subdued
The sawnwood market situation has not improved and trade is slow with no signs of any major changes for the third quarter. Analysts suggest that there may be some pick up in orders in late August at the close of the European vacation season, but apart from this, the prospects are not for any immediate recovery in demand for sawnwood. Sawnwood and log prices were unchanged through June 2010.
Central/West Africa
Currently, small volumes of logs are also exported from the Democratic Republic of Congo and the Republic of Equatorial Guinea.
Hope for a rethink on log export policy
According to some sources, the government of Gabon is assessing the impact of the log export ban on the economics of timber extraction, in-country processing, exportation and forestry sector employment.
Optimists in the industry are hoping that the system discussed around two months ago to tie log export quota to in-country processing would be revived. However, officials have not given any indication that the total on log exports will be relaxed.
Earlier this year, the Gabon State Timber Export Inspection Agency (SNBG) was assigned to export logs felled prior to end of December 2009. If this state enterprise is to remain viable, it is possible that it would be the first choice as the agency to manage any resumption of log exports. As early as 2009, regulations on a log export quota tied to in-country processing were supposed to have come into effect. However, the global market downturn and weak demand, especially for sawnwood, left the authorities in Gabon with little economic choice but to continue log exports.
Sawnwood market remains subdued
The sawnwood market situation has not improved and trade is slow with no signs of any major changes for the third quarter. Analysts suggest that there may be some pick up in orders in late August at the close of the European vacation season, but apart from this, the prospects are not for any immediate recovery in demand for sawnwood. Sawnwood and log prices were unchanged through June 2010.
| 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 |
205
|
205
|
122
|
| Belli |
230
|
230
|
-
|
| Bibolo/Dibétou |
140
|
130
|
|
| Bubinga |
600
|
530
|
390
|
| Iroko |
245
|
235
|
190
|
| Okoume (60% CI, 40% CE, 20% CS) |
230
|
-
|
-
|
| Moabi |
270
|
270
|
206
|
| Movingui |
180
|
150
|
140
|
| Niove |
130
|
130
|
-
|
| Okan |
300
|
300
|
140
|
| Padouk |
360
|
335
|
235
|
| Sapele |
230
|
220
|
165
|
| Sipo/Utile |
270
|
250
|
200
|
| Tali |
260
|
260
|
114
|
| Okoume |
C1 170 |
CE 160 |
CS 120 |
| West Africa sawnwood, FOB |
€ per m³
|
|
| Ayous | FAS GMS |
300
|
| Okoumé | FAS GMS |
370
|
| FAS. fixed sizes |
340
|
|
| Std/Btr GMS |
275
|
|
| Sipo | FAS GMS |
475
|
| FAS fixed sizes | 320 |
|
| FAS scantlings |
490
|
|
| Padouk | FAS GMS |
540
|
| FAS scantlings |
490
|
|
| Strips |
300
|
|
| Sapele | FAS Spanish sizes |
380
|
| 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 |
295
|