While West and Central African exporters report good order book positions, demand levels are flat providing no opportunity for price increases. Analysts say there is little chance of a significant change in the second quarter as European demand has not picked up to any notable extent in spite of a generally mild winter which allowed construction companies to continue working.
Business with buyers for the Chinese market is reported as brisk and there is strong demand for okoume logs and other species suitable for peeling. Demand for ayous in Italy stands out as one success and producers say orders have expanded and that prices are favourable. The indications are that pale coloured temperate hardwoods are the current favourites of architects and the general consumer in Europe.
Producers note with concern the market penetration of non-wood substitutes for enduses once the domain of tropical timber. One obvious weakness in the tropical timber sector is the lack of any cohesive, cooperative, joint market promotion by tropical timber exporting countries.
The reality is that just a handful of popular species dominate the trade as their properties and processing characteristics are well understood. While there is a huge volume of technical information available on hundreds of tropical timbers this is scattered throughout many different and uncoordinated publications and not in a format suitable for promotion.
Exporters test Mid East market with mixed red species
Keen competition continues for market share in the Middle East where demand is high. Okoume sales are reported as very good, although there is strong competition from meranti. Some markets, such as Oman, appear to prefer meranti over African species because of the lower cost.
Some West and Central African exporters are now shipping larger volumes of mixed red species which are more directly price competitive with the lower priced meranti. Most Middle East importers deal in large volumes of mainly European softwoods as well as tropical hardwoods so the entire market is very price conscious.
Côte d’Ivoire prepares for second round of VPA negotiations
The most recent FLEGT newsletter reports that “Côte d‟Ivoire has begun preparations for the second round of VPA negotiations with the EU after a technical session held in Abidjan. Thirteen Ivorian members of the technical negotiation committee attended representing government, industry associations, civil society organisations and traditional chiefdoms.
During the technical session, participants developed an initial list of the timber and timber products that the VPA is to cover. They also discussed a process to decide whether the VPA would cover timber sold on the domestic market as well as timber intended for export.
The group made progress in reviewing draft principles, criteria and indicators for the legality definition. The second VPA negotiation session is planned to take place in Brussels in May or June this year.
Log Export Prices
West Africa logs, FOB | € per m³ | ||
Asian market |
LM
|
B
|
BC/C
|
Acajou/ Khaya/N'Gollon |
220
|
220
|
155 |
Ayous/Obéché/Wawa |
225
|
210
|
150
|
Azobe & Ekki |
235
|
230
|
150
|
Belli |
230
|
230
|
-
|
Bibolo/Dibétou |
150
|
145
|
|
Iroko | 250 |
225
|
210
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 335 | 330 | 250 |
Moabi | 280 | 270 | - |
Movingui | 215 |
215
|
175
|
Niove |
165
|
165
|
-
|
Okan |
250
|
250 |
-
|
Padouk |
310
|
280 |
210
|
Sapele |
280
|
270
|
180
|
Sipo/Utile |
310
|
285
|
190
|
Tali | 300 | 300 |
-
|
Sawnwood Export Prices
West Africa sawnwood, FOB |
€ per m³
|
|
Ayous | FAS GMS | 340 |
Bilinga | FAS GMS | 520 |
Okoumé | FAS GMS |
480
|
FAS. fixed sizes | 255 | |
Std/Btr GMS |
350
|
|
Sipo | FAS GMS |
550
|
FAS fixed sizes | - | |
FAS scantlings | 550 | |
Padouk | FAS GMS | 790 |
FAS scantlings | 790 | |
Strips | 400 | |
Sapele | FAS Spanish sizes | 535 |
FAS scantlings |
555
|
|
Iroko | FAS GMS | 565 |
Scantlings | 590 | |
Strips |
440
|
|
Khaya | FAS GMS |
450
|
FAS fixed |
470
|
|
Maobi | FAS GMS |
550
|
Scantlings |
550
|
|
Movingui | FAS GMS |
410
|