Serious fluctuations in the Rupee and US Dollar exchange rate have affected imports of timber and in recent weeks the 10% rise in import costs of logs due to the depreciation of the Rupee cannot easily be absorbed by industry say local observers.
Analysts admit that while there are adequate stocks of teak available, shipments have slowed. Demand for substitutes and alternative timbers such as like Meranti, Kapur, Merbau and Balau is expected to be sustained because of the lower cost of these timbers.

Home loan repayments set to surge on interest rate hikes
In India those with home loans are finding that mortgage repayments have been rising due to increases in interest rates and the ending of the period of promotional so-called ‘teaser loans’ and this is expected slow the demand for loans and further underming the house building sector. The Bank of India has been raising rates steadily over the past 18 months in order to tackle inflation but this has led to a higher interest burden for home loan borrowers. The increase has not yet affected those who took out ‘teaser’ loans which were introduced in early 2009 to stimulate house building.

The period of low interest rates on these loans is coming to an end and borrowers will soon face a steep increase in monthly payments. In light of the interest rate increases and the effect on loan repayments the Indian building sector expects business to slow significantly.

CNF Plantation Teak

	US$ per m3
Tanzania Teak sawn	450-800
Côte d'Ivoire logs	450-850
PNG logs	500-700
El-salvador logs	400-550
Guatemala logs	400-500
Nigeria squares	300-500 ⇑
Ghana logs	350-650
Guyana logs	300-450
Benin logs	425-650
Benin sawn	475-600
Brazil squares	400-600
Burkina Faso logs	350-450
Columbia logs	400-600
Togo logs	350-500
Ecuador squares	350-1000 ⇑
Costa Rica logs	350-650 ⇑
Panama logs	350-475 ⇑
Sudan logs	350-800

Variations exist based on lengths and average girths of logs in a parcel. Prices also vary with measurement allowances given for bark and sap in different countries of origin.

Demand from Europe, USA and Middle East for teak and other hardwoods remains steady.

India Sawnwood Prices (domestic)

Sawnwood (Ex-mill)	Rs. per ft3
Myanmar Teak (AD)
Export Grade F.E.Q.	4000-1000 ⇑
Plantation Teak A grade	3000-4000 ⇑
Plantation Teak B grade	2500-3000 ⇑
Plantation Teak C grade	1800-2500 ⇑

India Sawnwood Prices (imports)

Sawnwood, (Ex-mill) (AD)	Rs. per ft3
Merbau	1200-1450
Balau	1200-1550
Kapur	850-1000
Red Meranti	650-925
Radiata Pine (AD)	425-475
Sawnwood, (Ex-warehouse) (KD)	Rs per ft3
Beechwood	900-1200
Sycamore	900-1200
Oakwood	1100-1500
American Walnut	1800-2150
Hemlock clear grade	800-1000
Hemlock AB grade	650-850
Western Red Cedar	1000-1350
Douglas fir	800-1000

India Plywood Prices

Plywood, (Ex-warehouse)	Rs per ft²
4 mm	36.25
6 mm	51.00
12 mm	66.50
15 mm	79.00 ⇓
18 mm	95.00

Locally Manufactured Plywood “Commercial Grade”	Rs per sq.ft
	Rubberwood	Hardwood
4mm	Rs.13.70	Rs.23.50
6mm	Rs.20.00	Rs.34.20
8mm	Rs.27.70	Rs.38.20
12mm	Rs.31.00	Rs.41.00
19mm	RS.42.00	Rs.55.00
5mm Flexible ply	Rs.26.00