The demand for red species has turned around and producers report active purchasing with sapele and sipo very much the favourites. This comes as a surprise as a few months ago buyers were showing little interest in either timber.
FOB prices for these two species are the only ones showing any real upward movement at present. Prices for other species are steady at the recent highs but are not showing any signs of strengthening.
Export orders for sapele and sipo logs, sawn GMS and scantlings are firming and producers report adequate log supplies for the present level of demand.
W. African exporters say demand in Europe for the red timbers has improved and because Chinese consumers „discovered‟ sapele last year resulting in an overall strengthen ing of demand.
Some producers report a steady , albeit small , demand for sapele in New Zealand. Sapele, it seems, is one of the few tropical woods appreciated in New Zealand. Analysts point out that the sapele/sipo „boom‟ has not had a knock one effect on mahogany prices.
Seasonal dip in demand from EU
Demand began to show signs of life but now it is holiday season so the market is slow. Producers must wait now for the end of August before buyers in the EU begin to consider their autumn and winter purchases. European demand is for a very limited number of species and the prospects for a change in this are slim.
Exporters managing to meet requirements of EUTR
There are reports that some NGOs are calling for tighter application of the EUTR which is of concern to producers. So far W. African exporters have been able to meet the requirements of importers in satisfying the EUTR and, so far, there has been no noticeable impact on volumes traded.
Regional round up
News is trickling through on further concession areas having been awarded in northern Congo Brazzaville said to be rich in sapele and other red species.
The Gabon tax repayment situation remains unchanged creating serious problems for the timber industry. In related news, it appears that in Cameroon there is a similar problem but the authorities there have provided a tax credit relief for the timber industry. Companies with operations in Gabon say it is becoming more and more difficult to do business as production costs are constantly rising.
The latest issue is congested rail and port operations in Gabon as exports of manganese and other products seem to be given priority.
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 |
230▲
|
230▲
|
150
|
Azobe & Ekki |
235
|
230
|
150
|
Belli |
290
|
290
|
-
|
Bibolo/Dibétou |
150
|
145
|
|
Iroko | 330 |
290
|
260
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 340 | 340 | 260 |
Moabi | 320 | 300 | - |
Movingui | 220 |
220
|
180
|
Niove |
160
|
155
|
-
|
Okan |
280
|
280 |
-
|
Padouk |
300
|
275 |
210
|
Sapele | 320 | 320 | 210 |
Sipo/Utile |
360
|
360 |
220
|
Tali | 360 | 360 |
-
|
Sawnwood Export Prices
West Africa sawnwood, FOB |
€ per m³
|
|
Ayous | FAS GMS | 350 |
Bilinga | FAS GMS | 520 |
Okoumé | FAS GMS |
480
|
Merchantable | 275 | |
Std/Btr GMS | 350 | |
Sipo | FAS GMS |
660▲
|
FAS fixed sizes | 660▲ | |
FAS scantlings | 670▲ | |
Padouk | FAS GMS | 820 |
FAS scantlings | 870 | |
Strips | 500 | |
Sapele | FAS Spanish sizes | 620 |
FAS scantlings | 630 | |
Iroko | FAS GMS | 610 |
Scantlings | 680 | |
Strips |
440
|
|
Khaya | FAS GMS |
450
|
FAS fixed |
470
|
|
Maobi | FAS GMS |
580
|
Scantlings |
560
|
|
Movingui | FAS GMS |
420
|