Overall, producers report no significant change in the market situation as demand remains moderate. Prices of sapelli and sipo, as of mid-October, were weak but despite this there is still no interest from buyers in Europe or China.
However, demand for beli remains firm in the Chinese market. Over the past two weeks there have been reports of an upturn in interest from buyers for the Chinese market.
Importers in India are looking for tali logs but as previously reported, padouk remains out of favour in India and also in Belgium.
Now easier for traders to assess market direction
With very few exceptions prices continue stable as producers are matching output closely to demand levels to avoid any build-up of stocks which could put a downward pressure on prices.
Buyers also are playing the market very carefully seeing no advantage in speculative purchases, being content to import to sufficient to satisfy immediate demand. In this way stocks are kept to a minimum.
This trading pattern is very different from the past style of ‘hand-to-mouth’ buying. Today trends can be more accurately assessed from the comprehensive data on construction and consumption available on line which aids purchase planning.
The immediate concern of both producers and importers is currency volatility triggered first by the decision in the UK to exit the EU and as investors move funds seeking safe havens in these uncertain times.
Not all plain sailing in Duty Free Zone
As previously reported, some Indian companies are interested in setting up processing facilities in Gabon’s Duty Free Zone (DFZ) and log producers report preliminary enquiries for long term supplies of okoume peeler logs.
There have been reports of Indian entrepreneurs considering the building production plants in Congo Brazzaville but deciding against this perhaps because, as suggested by analysts, the quality of okoume logs in Congo Brazzaville is an issue.
Downstream mills that are already producing doors, windows and other joinery in the Gabon DFZ are complaining that taxes and the duties levied on goods for export to the CEMAC countries are far too high.
Manufacturers are beginning to lobby the authorities for a review.
If intra-regional trade is to grow then there is a need for improved infrastructure, harmonisation of duties and customs entry and exit procedures as well as elimination of costly informal tolls.
Log Export Prices
West Africa logs, FOB | € per m³ | ||
Asian market |
LM
|
B
|
BC/C
|
Acajou/ Khaya/N’Gollon |
230
|
240
|
160 |
Ayous/Obéché/Wawa |
260
|
260
|
180
|
Azobe & Ekki |
230
|
230
|
190
|
Belli |
235
|
235
|
–
|
Bibolo/Dibétou |
150
|
145
|
|
Iroko | 330 |
290
|
260
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 210 | 190 | 160 |
Moabi | 335 | 305 | 225 |
Movingui | 210 |
210
|
160
|
Niove |
160
|
160
|
–
|
Okan |
250
|
210 |
–
|
Padouk |
300
|
290 |
225
|
Sapele | 300 | 290 | 220 |
Sipo/Utile |
320
|
310 |
255
|
Tali | 310 | 310 |
–
|
Sawnwood Export Prices
West Africa sawnwood, FOB |
€ per m³
|
|
Ayous | FAS GMS | 410 |
Bilinga | FAS GMS | 520 |
Okoumé | FAS GMS |
340
|
Merchantable | 270 | |
Std/Btr GMS | 290 | |
Sipo | FAS GMS |
570↓
|
FAS fixed sizes | 570↓ | |
FAS scantlings | 590↓ | |
Padouk | FAS GMS | 865↓ |
FAS scantlings | 930↓ | |
Strips | 640↓ | |
Sapele | FAS Spanish sizes | 540↓ |
FAS scantlings | 540↓ | |
Iroko | FAS GMS | 600 |
Scantlings | 700 | |
Strips |
440
|
|
Khaya | FAS GMS |
450
|
FAS fixed |
460
|
|
Maobi | FAS GMS |
610
|
Scantlings |
630
|
|
Movingui | FAS GMS |
420
|