Investigation of padauk shipment to EU impacts prices

August 13, 2019
Source:
ITTO/Fordaq
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230
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In early July Belgian Customs blocked the release of a shipment of padouk sawnwood dispatched from Gabon. The Belgian authorities were warned that there was a risk that the importer of this shipment could not satisfy the EUTR and are currently assessing whether the Belgian importer satisfied the due diligence requirements of the EUTR.

This investigation and the fact that over the past months there have been large shipments of padauk to the EU, has had an impact on padauk sawnwood prices which fell to around euro 700-750 per cu.m from recent highs of over euro 1,100 per cu.m

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The new Forestry Minister faces an uphill task as he begins to deliver on the Presidents charge to “put an end to bad practices in the forestry sector and corruption in the administration”. The issue of Kevazingo stocks remains unresolved.

Producers of okoume logs for the Indian and Chinese mills in the special economic zone are facing calls for reduced prices because, say anlaysts, veneer stock levels in SEZ mills have risen due to over production in dull market conditions.

Okoume peeler log prices have dropped from around CFA 110,000 per cu.m to CFA90,000 per cu.m over the past month. There are reports that prices being offered by one major miller are as low as CFA45,000 per cubic metre.

Analysts write that logging companies in Gabon are stepping up efforts to market a wider range of species, especially redwoods, but report little interest for this in China and India.