Myanmar: Teak and pyinkado trade
Teak buying for the Thai market is completely stagnant while demand for pyinkado from China and Vietnam was steady through June 2010.
India remains the biggest importer of both teak and pyinkado in June 2010. Some buyers reported an oversupply of pyinkado logs in the Indian market.
Impact of exchange rates on timber market
The Myanmar Timber Enterprise uses Euro in its tender sales and US$ in its direct sales contracts. Some traders have been able to take advantage of fluctuating exchange rates and so the trade has picked up. According to some analysts, a slight easing of sales and shipments is possible if exchange rates become more stable.
India is experiencing a shortfall of logs stemming from the log export ban in Gabon. As a result, India continues to buy Myanmar teak, despite the recent depreciation of the Rupee against the US dollar. The US$ exchange rate was Rs. 44.41 on 2nd April and Rs. 47.71 on 25th May. However, the Indian teak buying market absorbed the exchange rate differentials even when the US$ rose to above Rs. 50.
Teak remains in demand in India and the steady flow of teak from Myanmar to India is expected to continue, says an analyst. However, India has a substantial stock of teak on its own to exploit if importing becomes uneconomic.
MTE list prices
The following price tables show Myanmar Timber Enterprise (MTE) list prices for direct sales contracts in use since September 2008. All prices quoted are US$ per Hoppus ton. Current tender market prices are US$200 to 250 per Hoppus ton over the MTE list prices.
MTE list prices
MTE list prices on teak logs (US$ per
Hoppus ton)
Special Area:
Gangaw, Pakokku, Kalay (Chin)
1st Class Area: Taungdwingyi, Pyinmana, Thayet, Minbu, Toung-Oo, Shwebo, Monywa, Aunglan, Pyay;
2nd Class Area: Zigon, Thayawaddi, Kawlin, Momeik, Lashio, Taunggyi, Pyin-Oo-Lwin, North Bago, Katha;
3rd Class Area: Pa-an, Hinthada, Mawlike, East Katha, South Bago, Myitkyeena, Bhamo.
MTE list prices on teak logs in all areas (US$ per Hoppus ton)
MTE list prices on pyinkado and kanyin (Gurjan) logs
(US$ per Hoppus ton)
Myanmar
Myanmar Log Prices (natural forests)
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
All prices are
per hoppus ton Euro FOB, equivalent to 1.8 cu.m
Impact of exchange rates on timber market
The Myanmar Timber Enterprise uses Euro in its tender sales and US$ in its direct sales contracts. Some traders have been able to take advantage of fluctuating exchange rates and so the trade has picked up. According to some analysts, a slight easing of sales and shipments is possible if exchange rates become more stable.
India is experiencing a shortfall of logs stemming from the log export ban in Gabon. As a result, India continues to buy Myanmar teak, despite the recent depreciation of the Rupee against the US dollar. The US$ exchange rate was Rs. 44.41 on 2nd April and Rs. 47.71 on 25th May. However, the Indian teak buying market absorbed the exchange rate differentials even when the US$ rose to above Rs. 50.
Teak remains in demand in India and the steady flow of teak from Myanmar to India is expected to continue, says an analyst. However, India has a substantial stock of teak on its own to exploit if importing becomes uneconomic.
MTE list prices
The following price tables show Myanmar Timber Enterprise (MTE) list prices for direct sales contracts in use since September 2008. All prices quoted are US$ per Hoppus ton. Current tender market prices are US$200 to 250 per Hoppus ton over the MTE list prices.
| Grade |
Special
Area |
1st
Class
Area |
2nd
Class
Area |
3rd
Class
Area |
Avg. |
| Sawing Grade-3 |
2528 |
2402 |
2275 |
2149 |
2339 |
| Sawing Grade-5 |
2281 |
2167 |
2053 |
1939 |
2110 |
| Sawing Grade-6 |
1685 |
1601 |
1517 |
1432 |
1559 |
1st Class Area: Taungdwingyi, Pyinmana, Thayet, Minbu, Toung-Oo, Shwebo, Monywa, Aunglan, Pyay;
2nd Class Area: Zigon, Thayawaddi, Kawlin, Momeik, Lashio, Taunggyi, Pyin-Oo-Lwin, North Bago, Katha;
3rd Class Area: Pa-an, Hinthada, Mawlike, East Katha, South Bago, Myitkyeena, Bhamo.
MTE list prices on teak logs in all areas (US$ per Hoppus ton)
| Sawing Grade-7 |
1174 |
| Sawing Grade-8 |
871 |
| Short Logs |
2368 |
| Log-ends |
1392 |
| Posts (2'-2'11'') |
721 |
| Poles (1'-1'11'') |
577 |
| Tops & lops |
431 |
MTE list prices on pyinkado and kanyin (Gurjan) logs
(US$ per Hoppus ton)
| Pyinkado export quality |
|
| Bago East Area |
678 |
| Bago West Area |
666 |
| Other areas |
642 |
| Kanyin |
|
| Mon-ywa/Mo-meik/Maw-laik/Ma-bein areas | 375 |
| Rakhine area |
360 |
| Other areas |
375 |
Myanmar Log Prices (natural forests)
| Teak Logs, FOB |
€ Avg per Hoppus Ton
(traded volume) |
||
| Veneer Quality |
May
|
Jun
|
|
| 2nd Quality | nil | 6,600 (3 tons) |
|
| 3rd Quality | 6,129 (4 tons) |
6,388 (5 tons) |
|
| 4th Quality | 5,348 (10 tons) |
5,009 (10 tons) |
|
| Sawing Quality | |
||
| Grade 1 (SG-1) | 3,257 (30 tons) |
3,095 (38 tons) |
|
| Grade 2 (SG-2) | 2,494 (41 tons) |
2,633 (45 tons) |
|
| Grade 3 (SG-3) | nil | nil |
|
| Grade 4 (SG-4) | 1,945 (219 tons) |
2,045 (210 tons) |
|
| Grade 5 (SG-5) Assorted | 1,484 (119 tons) |
1,206 (124 tons) |
|
| Grade 6 (SG-6) Domestic | 1,011 (101 tons) |
1,040 (112 tons) |
|
| Grade 7 (ER-1) | 807 (152 tons) |
839 (77 tons) |
|
| Grade 8 (ER-2) | nil | 591 (8 tons) |
|
| Short Logs 6 ft. / 7 ft. |
nil | nil |
|
Prices differ due to quality or girth at the time of the transaction.
Hardwood log prices
|
Logs FOB
|
€ per hoppus
ton |
| Pyinkado |
616 (86 tons) |
| Gurjan (keruing-exp) |
234 (491
tons) |
| Tamalan (export) |
845 (45 tons) |
| Padauk |
|
|
3rd Quality
|
3,356 (4
tons) |
|
4th Quality
|
2,486 (23
tons) |
|
Assorted Quality
|
1,999 (13
tons) |