Central/West African producers report that all European markets are quiet and any purchases are only for replacement of stocks and tend to be for only the faster moving timbers. The weak demand in Europe has resulted in some price weakness for species which are most susceptible to even small shifts in demand.
Some of the larger European buyers are reportedly overstocked with sapele and padouk and are therefore holding off on imports. This is adding to the slight slackening in prices being offered by importers. Padouk prices are generally volatile and price movements tend to be wider than for most other timbers. Demand for okan has fallen once again mainly because buyers in Netherlands have switched to buying azobe.
On the brighter side, Asian markets are reported as busy, though India importers are on the side-lines at present and, like importers in Europe, are not interested in padouk. Importers in China are said to be actively buying which has lifted the price for okoume, especially peeler logs for face veneer. Chinese mills generally use cheaper species for plywood core veneers and okoume for face and back veneers.
In both China and India there is continued interest in larger sized sawn flitches for sliced veneers and for flooring and this has helped slow the slide in FOB prices for padouk and okan in spite of the poor demand in Europe.
Bubunga issue becomes more complicated
The issue of exports of kevazingo/bubinga, which is now subject to CITES regulation, continues. It has been reported that the governments in Gabon and Congo Brazzaville have not yet ratified the latest CITES decisions and controversy continues on shipments of old stocks of sawn kevazingo.
There are reports that the government in Gabon has shifted it stance on the export of kevazingo sawnwood produced before the CITES rules were changed. Previously the government said stocks could be exported but now it seems this will not be allowed.
Market size works against downstream production
The Gabon government continues to press timber companies to invest in added value processing such as furniture.
However, local timber companies point out that the domestic market is too small to support large scale furniture manufacturing and the high taxes levied on exports even to neighbouring EMAC countries (Economic Community of Central African States) discourages investment in downstream processing.
The recently appointed Minister of Forestry in Congo Brazzaville is also seeking to push companies into downstream and furniture manufacture, but here again it is a question if market size and high taxes and costly long distance transportation to potential markets.
Log Export Prices
West Africa logs, FOB | € per m³ | ||
Asian market |
LM
|
B
|
BC/C
|
Acajou/ Khaya/N’Gollon |
240
|
240
|
160 |
Ayous/Obéché/Wawa |
240
|
240
|
190
|
Azobe & Ekki |
230
|
230
|
160
|
Belli |
240
|
235
|
–
|
Bibolo/Dibétou |
180
|
170
|
|
Bilinga |
220
|
220
|
- |
Iroko | 325 |
300
|
265
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 210 | 190 | 160 |
Moabi | 330 | 300 | 235 |
Movingui | 210 |
210
|
160
|
Niove |
175
|
160
|
–
|
Okan |
210
|
190 |
–
|
Padouk |
300
|
280 |
230
|
Sapele | 290 | 280 | 220 |
Sipo/Utile |
310
|
290 |
255
|
Tali | 330 | 320 |
–
|
Sawnwood Export Prices
West Africa sawnwood, FOB |
€ per m³
|
|
Ayous | FAS GMS | 400 |
Bilinga | FAS GMS | 515 |
Okoumé | FAS GMS |
340
|
Merchantable | 280 | |
Std/Btr GMS | 266 | |
Sipo | FAS GMS |
550
|
FAS fixed sizes | 560 | |
FAS scantlings | 560 | |
Padouk | FAS GMS | 820 |
FAS scantlings | 920 | |
Strips | 640 | |
Sapele | FAS Spanish sizes | 500 |
FAS scantlings | 520 | |
Iroko | FAS GMS | 620 |
Scantlings | 710 | |
Strips |
440
|
|
Khaya | FAS GMS |
450
|
FAS fixed |
460
|
|
Maobi | FAS GMS |
610
|
Scantlings |
630
|
|
Movingui | FAS GMS |
420
|