Malaysia: Decline in timber business expected after Chinese New Year
Malaysian prices continued to decline as the global
economic slowdown continued. BTimes indicated that the
price decline was further aggravated by the worst slump in
US lumber prices in almost 18 years and shares of
Malaysian timber companies were equally negatively
affected. However, the full impact of the drop in prices
was paused due to the closure of businesses during the
annual Chinese Lunar New Year celebrations.
Nevertheless, the decline in prices is expected to persist
after the New Year festivities.
Low growth of GDP anticipated in 2009
Analysts expected Malaysia’s GDP growth to be between 1.1% and 2.2% in 2009 as the national economy contracts, reported Bernama News. Unemployment is expected to hit 4.7% and market conditions continue to be bleak. The Malaysian Ringitt fell for the third week in the wake of speculations that the central bank will cut interest rates to stimulate economic growth and aid local exporters.
DRC cancelled contracts could provide Malaysia with opportunity
The Independent reported on traders’ hopes that Malaysian sawnwood suppliers can fill the void created by the cancelled contracts in the Democratic Republic of Congo (see West/Central Africa section). However, the EU, one of the major destinations for timber from the DRC may prove to be elusive for Malaysian timber suppliers as EU shares fell to a six-year low, according to The Guardian. Economic data indicated the UK economy went into recession at the end of 2008 and contracted 1.5% in the fourth quarter of 2008.
Government decides to reduce export of natural rubber
Btimes reported on Malaysia’s decision to reduce the export of natural rubber by 5% to 57,050 tons in year 2009. As a result of this measure, more rubber plantations can be replanted or converted into alternative commercial projects. This would mean that more rubberwood would be available as raw material, thus reducing pressure on rubberwood prices.
Malaysia Log Prices
Malaysia Log Prices
Malaysia Sawnwood Prices
Malaysia Plywood Prices
Other Malaysia Panel Prices
Malaysia Added Value Product Prices
Malaysia Furniture and Parts Prices
Low growth of GDP anticipated in 2009
Analysts expected Malaysia’s GDP growth to be between 1.1% and 2.2% in 2009 as the national economy contracts, reported Bernama News. Unemployment is expected to hit 4.7% and market conditions continue to be bleak. The Malaysian Ringitt fell for the third week in the wake of speculations that the central bank will cut interest rates to stimulate economic growth and aid local exporters.
DRC cancelled contracts could provide Malaysia with opportunity
The Independent reported on traders’ hopes that Malaysian sawnwood suppliers can fill the void created by the cancelled contracts in the Democratic Republic of Congo (see West/Central Africa section). However, the EU, one of the major destinations for timber from the DRC may prove to be elusive for Malaysian timber suppliers as EU shares fell to a six-year low, according to The Guardian. Economic data indicated the UK economy went into recession at the end of 2008 and contracted 1.5% in the fourth quarter of 2008.
Government decides to reduce export of natural rubber
Btimes reported on Malaysia’s decision to reduce the export of natural rubber by 5% to 57,050 tons in year 2009. As a result of this measure, more rubber plantations can be replanted or converted into alternative commercial projects. This would mean that more rubberwood would be available as raw material, thus reducing pressure on rubberwood prices.
Malaysia Log Prices
| Sarawak log, FOB | US$ per m³ |
| Meranti SQ up | 231-255 ⇓ |
|
Small
|
211-242 ⇓ |
|
Super small
|
199-224 ⇓ |
| Keruing SQ up | 218-230 ⇓ |
|
Small
|
187-218 ⇓ |
|
Super small
|
161-192 ⇓ |
| Kapur SQ up | 208-233 ⇓ |
| Selangan Batu SQ up | 178-215 |
| Pen. Malaysia logs, domestic (SQ) | US$ per m³ |
| DR Meranti | 234-253 ⇓ |
| Balau | 302-327 ⇑ |
| Merbau | 332-367 ⇓ |
| Rubberwood | 41-77 ⇓ |
| 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 | |
| White Meranti A & up |
284-315 ⇓
|
|
| Seraya Scantlings (75x125 KD) |
465-480 ⇓
|
|
| Sepetir Boards |
252-274 ⇓
|
|
| Sesendok 25,50mm |
361-379 ⇓
|
|
| Kembang Semangkok |
296-319 ⇓
|
|
| Malaysian Sawnwood, domestic |
US$ per m³
|
|
| Balau (25&50mm,100mm+) |
341-361 ⇓
|
|
| Merbau |
492-544 ⇓
|
|
| Kempas 50mmx (75,100 & 125mm) |
266-306 ⇓
|
|
| Rubberwood | 25x75x660mm up |
195-245 ⇓
|
| 50-75mm Sq. |
237-269 ⇓
|
|
| >75mm Sq. |
259-286 ⇓
|
|
Malaysia Plywood Prices
| Malaysia ply MR BB/CC, FOB | US$ per m³ |
| 2.7mm |
423-485 ⇓
|
| 3mm |
396-426 ⇓
|
| 9mm & up |
341-413 ⇓
|
| Meranti ply BB/CC, domestic | US$ per m³ |
|
3mm
|
392-433 ⇓
|
|
12-18mm
|
326-355 ⇓
|
Other Malaysia Panel Prices
| Malaysia, Other Panels, FOB | US$ per m³ |
| Particleboard Export 12mm & up |
231-254 ⇓
|
|
Domestic 12mm & up
|
216-233 ⇓
|
| MDF Export 15-19mm |
286-318 ⇓
|
|
Domestic 12-18mm
|
275-293 ⇓
|
Malaysia Added Value Product Prices
| Malaysia, Mouldings, FOB | US$ per m³ |
| Selagan Batu Decking |
563-573 ⇓
|
| Red Meranti Mouldings 11x68/92mm x 7ft up | |
|
Grade A
|
579-592 ⇓
|
|
Grade B
|
530-539 ⇓
|
Malaysia Furniture and Parts Prices
| Malaysia, Rubberwood, FOB | US$ per piece | |
| Semi-finished dining table solid laminated top 2.5'x4', extension leaf |
58-74 ⇓
|
|
| As above, Oak Veneer |
65-79 ⇓
|
|
| Windsor Chair |
57-59 ⇓
|
|
| Colonial Chair |
55-60 ⇓
|
|
| Queen Anne Chair (soft seat) | without arm |
55-63 ⇓
|
| with arm |
55-64 ⇓
|
|
| Chair Seat 27x430x500mm |
43-48 ⇓
|
|
| Rubberwood Tabletop | US$ per m³ | |
| 22x760x1220mm sanded & edge profiled | ||
|
Top Grade
|
570-602 ⇓ | |
|
Standard
|
565-574 ⇓ | |