European buyers have not yet resumed purchasing after the summer vacation period but, with the economies in the main markets in the EU looking more positive W. African producers are convinced they will see sustained business through to year end.
Overall, producer are expecting current price levels to be maintained and are saying that, because of rising production costs, price discounts are unlikely. At the same time, few would expect any major upward movements in prices and will be content, for the time being, to see prices hold on to the better levels attained during the third quarter.
Douala Port log stock pile to move in September
The new contractors, reportedly a consortium of Chinese companies, are due to take over port operations at Douala during September so the huge stock pile of logs awaiting export shipment may soon begin to move.
Reports suggest that there could be as much as 400,000 cubic metres of timber at the port. Analysts are speculating on the impact in the market of a surge in log availability and suggest that, in the short-term, demand could ebb but note that demand for logs remains firm so the export of the large volumes from Douala may not have much impact.
Gabon millers holding back on investments
Companies in Gabon say there is still no sign of the government effecting repayment of the TVA tax . Exporters say it is becoming more and more difficult to do business and the economic out look is uncertain. The burden on company waiting for the tax refund is affecting investments and adding to the perceived risk in the sector such that commercial financing is becoming more expensive and difficult to secure. Most new private investment in the region is now concentrated in Congo Brazzaville where the government is pouring money into the renovation of road, rail and port facilities.
Weaker demand in Chinese market anticipated
International markets are said to be quiet at present and no price movements for either logs or sawnwood have been reported. Demand for China is said to be steady but some exporters have been told that domestic demand in China for tropical wood products is easing as the government cools the housing market.
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 | 340 | 340 | 240 |
Sipo/Utile |
360
|
360 |
220
|
Tali | 315 | 315 |
-
|
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 | 660 |
FAS scantlings | 670 | |
Iroko | FAS GMS | 620 |
Scantlings | 695 | |
Strips |
440
|
|
Khaya | FAS GMS |
450
|
FAS fixed |
470
|
|
Maobi | FAS GMS |
580
|
Scantlings |
560
|
|
Movingui | FAS GMS |
420
|