The following shows the grade, quantity and prices for teak logs during the 25 and 28 October tender conducted by the Myanmar Timber Enterprise (MTE).

Hoppus ton=1.8m3; All grades, except SG-3/5/6, are length 8’ x girth 5’ &up. SG-3/4/6 are girth 4’ &up. SG-3 grade is higher than SG-4 but with lower girth and price. Prices vary due to quality and/or girth at the time of the transaction.

Successful bidders in the October sealed tender for lower grades of teak were from Thailand, India, and Myanmar. Thailand purchased 257 tons, India purchased 66 tons and domestic mills purchased 37 tons. It will be seen that prices have picked up compared to levels last month.

Successful bidders in the tender sales for higher grade natural forest teak logs were from Singapore, Japan and Hong Kong. Singapore purchased 238 tons; Japan 38 tons and Hong Kong 37 tons. Prices for the better grades were also higher than the previous month‟s tender and sealed tender sales.

Strengthened rupee brings Indian buyers back to the log market

Log shipments picked up at the end of September according to Myanma Timber Enterprise (MTE) officials. Analysts point out that this was mainly due to Indian buyers returning to the market as the Indian rupee has recovered some of the losses against the US dollar thus making US dollars purchases cheaper.

The Indian rupee is now around about 61.5 to the US dollar but around twelve months ago it was as strong as 53 to the dollar which drove Indian purchases of logs higher. Importers in Indian are obviously hoping the exchange rate stabilises.

Singapore a major investor

Two Singaporean companies have signalled their intention to invest in Myanmar's wood-based manufacturing and construction sectors through a joint venture with Myanmar counterparts. 

The two Singaporean companies, Wood Craft International and Uni-Global Power, will link up with Myanmar companies Global Star and Nature Link to produce finished wood products and to invest in hotels, apartments, offices and a city mart. Businesses in Singapore, with the strong support of the Singaporean government, are increasing investment in Myanmar at a time when the country is in need of capital, technology and human resources to implement its economic reform process for development.

According to Myanmar official statistics Singapore‟s investment in Myanmar amounted to US$2.358 billion as of July 2013. Singaporean figures show that in 2012 bilateral trade between Myanmar and Singapore reached US$2.7 billion of which Myanmar‟s exports to Singapore amounted to US$283million.