Peru: potential for US$ 5 billion forest product exports

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Peru's forest product exports have the potential to grow to as much as US$5 bil. in 10 years because of the positive impact of the new National Forestry Policy and Wildlife (PNFFS) according to the Ministry of Agriculture and Irrigation.

The ministry spokesperson stressed that at present wood product exports contribute just 1% to GDP but this can change as the sector will benefit from the sound legal framework provided by the new forest policy.

Draft regulations for forest policy ready for discussion

Forestry Law would take effect in March 2014 and consultation would be September. The Forest Act and Wildlife will apply from the second quarter of 2014 said the Ministry of Agriculture and Irrigation (MINAGRI).

The Minister of Agriculture and Irrigation, Milton von Hesse, explained that the first draft of the regulations in the Act have been drafted and will now be discussed with stakeholders.

The minister reiterated that the new National Forestry Policy and Wildlife Act is just one step towards a comprehensive plan to promote the sustainable use of the country’s natural resources.

Central Reserve Bank of Peru intervenes to support Nuevo Sol

The sol/dollar exchange rate has been very volatile over the past weeks. On August 6 the average selling price of the dollar was Nuevo Sol 2.796 per dollar. 10

A press release from the Central Reserve Bank of Peru (BCRP) says that the bank intervened in the foreign exchange market selling US$190 mil. in an effort to support the sol.

Strong US economic growth in the second quarter strengthened the dollar and local banks were big buyers as they sought to improve their positions.

After appreciating to historically high levels in 2012, the Nuevo Sol has weakened more than 9.5 percent so far this year.

Export Sawnwood Prices  
Peru Sawnwood, FOB Callao Port US$ per m³
Mahogany S&B KD 16%, 1-2'' random lengths (US market)
1570-1655
Spanish Cedar KD select
North American market
958-977
Mexican market
946-965
Pumaquiro 25-50mm AD Mexican market
545-598
   
Peru Sawnwood, FOB Callao Port (cont.)
US$ per m³
Virola 1-2" thick, length 6'-8' KD
Grade 1, Mexican market
428-487
Grade 2, Mexican market
358-404
Cumaru 4" thick, 6'-11' length KD
Central American market
834-849
Asian market
811-893
Ishpingo (oak) 2" thick, 6'-8' length
Spanish market
509-549
Dominican Republic
572-589
Marupa (simarouba) 1", 6-11 length Asian market
392-451
 
Peru Sawnwood, FOB Iquitos
US$ per m³
Spanish Cedar AD Select Mexican market
887-909
Virola 1-2" thick, length 6'-13' KD
Grade 1, Mexican market
429-467
Grade 2, Mexican market
332-377
Grade 3, Mexican market
161-176
Marupa (simarouba) 1", 6-13 length KD
Grade 1, Mexican market
314-341
 
Domestic Sawnwood Prices
US$ per m³
Mahogany
867-911
Virola
92-134
Spanish Cedar
264-305
Marupa (simarouba)
83-99
 
Export Veneer Prices
Veneer FOB Callao port
US$ per m³
Lupuna 3/Btr 2.5mm
198-223
Lupuna 2/Btr 4.2mm
212-222
Lupuna 3/Btr 1.5mm
211-221
 
Export Plywood Prices
Peru plywood, FOB Callao (Mexican Market) US$ per m³
Copaiba, 2 faces sanded, B/C, 15 x 4 x 8mm
318-347
Virola, 2 faces sanded, B/C, 5.2 x 4 x 8mm
412-420
Cedar fissilis, 2 faces sanded 4 x 8 x 5.5mm
759-770
Lupuna, treated, 2 faces sanded, 5.2 x 4 x 8mm
363-385
Lupuna plywood B/C 15 x 4 x 8mm
380-408
B/C 9 x 4 x 8mm
345-350
B/C 12 x 4 x 8mm
356-377
B/C 8 x 4 x 15mm
416-439
C/C 4 x 8 x 4mm
389-425
Lupuna plywood B/C 8 x 4 x 4mm Central Am.
370-393
 
Domestic Plywood Prices
Lupuna Plywood, BB/CC, domestic US$ per m³
(Iquitos mills)
    122 x 244 x 4mm 444
    122 x 244 x 6mm 397
    122 x 244 x 8mm 415
    122 x 244 x 12mm 399
(Pucallpa mills)
    122 x 244 x 4mm 463
    122 x 244 x 6m 439
    122 x 244 x 8mm 430
    122 x 244 x 12mm 429
 
Domestic Prices for Other Panel Products
Peru, Domestic Particleboard US$ per m³
1.83m x 2.44m x 4mm 282
1.83m x 2.44m x 6mm 230
1.83m  x  2.44m  x  12mm 204
 
Export Prices for Added Value Products
Peru, strips for parquet US$ per m³
Cabreuva/estoraque KD12% S4S, Asian Market 1287-1388
Cumaru KD, S4S             Swedish market 866-981
                                        Asian market 1289-1350
Cumaru decking, AD, S4S, E4S, US market 1210-1298
Pumaquiro KD #1, C&B, Mexican market 423-511
Quinila KD, S4S 2 x 10 x 62cm, Asian market 493-519
2 x 13 x 75cm, Asian market 732-815
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