Peru: prices for wood products

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ITTO's Tropical Timber Market Report
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Gustavo Suarez de Freitas, a forestry expert has reported that most of the deforestation in the country is the result of a deliberate change in land use from forest to agriculture. He has also reported that most of the forest clearance is of small plots of less than half a hectare for small-scale agriculture and that most of the clearance is undertaken by immigrants moving into forested areas.

Following on from this assertion de Freitas lamented the failure to better utilise the extensive forest wealth of the country to alleviate poverty as well as for economic development.

Adex appeals for re-launch of concession allocations

The Exporters Association (Adex) has called on authorities to re-launch the Amazon forest concession strategy to provide for expanded development of the wood processing sector and increased exports. Adex recalled that in 2012 wood product exports declined.

The chairman of the Timber and Wood Industry section of Adex, Erik Fischer, has said that this request stems from the desire of companies to continue investing in the sector to improve competitiveness and implement sustainable projects that have a positive social and environmental impact.

Without a clear direction and a stable policy framework investors are reluctant to implement long term plans which will consolidated the benefits from a viable forestry sector in terms of social inclusiveness, wealth creation and environmental sustainability.

US$7.7 million for forestry development

The Agricultural Bank (Agrobanco) plans to offer US$7.7 million to finance forestry activities in Madre de Dios, Huanuco, Loreto and Ucayali.

These funds will be allocated to projects for forest rehabilitation and for forest industry development in areas dominated by the informal timber sector and where forest degradation from illegal logging is a serious problem.

Agrobanco is the only financial institution in the country to offer a line of credit for the forest sector.
The bank will consider projects initiatives that promote reforestation with native species, conservation of forests and wildlife and job creation in addition to wood product industry development.

To date, the Agrobanco has disbursed loans totalling US$2.7 million to companies engaged in sawmilling, trading, mining and added value timber industries.

Some of these funds have been used by entrepreneurs and small scale timber producers to purchase machinery and equipment that allows them to fully comply with the recommendations and requirements of the Forest and Wildlife Act.

The bank also promotes training activities in partnership with public and private agencies. New entrepreneurs are offered training in organizational management, market access and business management. Business management workshops were managed by timber specialists from ESAN University and the Ministry of Agriculture.

A spokesperson from Agrobanco said the timber sector in Peru has potential because of the high value commercial species that are available but this potential can only be released through a process of rational use within the framework of national and international standards.

The key to releasing the potential of the forestry and wood processing sectors says Agrobanco is private sector participation in promoting sustainable forestry development, protection of wildlife and industrial development.

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
366-382
B/C 9 x 4 x 8mm
345-350
B/C 12 x 4 x 8mm
350-360
B/C 8 x 4 x 15mm
410-429
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 1332-1552
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 727-815
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