This company reportedly produced 598,000 cu.m of logs in the first eight months of this year. Last year annual log production by the company was around 940,000 cu.m.
India a major buyer of Malaysian logs
It has been reported that India imported 2.21 million cu.m of logs in 2010 which is about 56% of Sarawak’s total log production thereby displacing Japan as the largest importer of Sarawak logs.
Meanwhile statistics released by the Sarawak Timber Industry Development Corporation (STIDC) indicate that India imported 582,000 cu.m or 63% of Sarawak’s total logs production of 912,000 cu.m in the first half of 2011. Imports by Taiwan P.o.C ranked second at 128,000 cu.m, Japan third with 89,000 cu.m, followed by China where imports were 61,500 cu.m for the same period. Log production in Sarawak declined by up to 15% to 4.26 million in the first half of 2011 year on year.
This translates to a monthly average production of 710,000 cu.m in the first half of 2011, the lowest monthly average in two decades. In addition, analysts commented that one of the main reasons behind the tight log supply situation in Sarawak is the unresolved river transportation system problems.
Caution urged as India not immune to global economic shocks
Analysts are urging caution in painting an overly optimistic picture of India’s continual role as the largest importer of Sarawak’s logs production. India is not immune to the effect of the euro-zone debt crisis and a possible second recession in the US. The recent depreciation of the Rupee could also impact the capacity of Indian manufacturers to continue importing at current levels.
Excise duty, a form of tax collected by the Indian government on the value of shipments by factories in India dropped 8% for the first time in 16 months in September 2011, signaling a possible slowdown in the Indian manufacturing sector.
Indian Purchasing Managers Index for the manufacturing sector falls
Reinforcing the likelihood of a slow down in the Indian economy, in September 2011, the HSBC Purchasing Managers Index (PMI) for the manufacturing sector in India felled to 50.4 from 52.6 in the August 2011. Any reading below 50 indicates a contraction in the manufacturing sector. The HSBC PMI for the Indian services sector fell to 49.8 in the same month. The services sector contributes to 60% of economic activities in India.
Sarawak log, FOB | US$ per m³ |
Meranti SQ up | 265-292 |
Small
|
253-286 |
Super small
|
255-279 |
Keruing SQ up | 247-259 |
Small
|
238-271 |
Super small
|
227-251 |
Kapur SQ up | 239-265 |
Selangan Batu SQ up | 244-278 |
Pen. Malaysia logs, domestic (SQ) | US$ per m³ |
DR Meranti | 283-302 |
Balau | 325-355 |
Merbau | 378-409 |
Rubberwood | 106-140 |
Keruing | 247-263 |
Peninsular Malaysian meranti logs are top grade and are used for scantlings for the EU. Their prices are higher than Sarawaks. |
Malaysia Sawnwood Prices
Malaysia Sawnwood, FOB | US$ per m³ | |
DR
Meranti |
415-451 | |
White Meranti A & up |
310-340
|
|
Seraya Scantlings (75x125 KD) |
452-464
|
|
Sepetir Boards |
277-306
|
|
Sesendok 25,50mm |
364-382
|
|
Kembang Semangkok |
344-373
|
|
Malaysian Sawnwood, domestic |
US$ per m³
|
|
Balau (25&50mm,100mm+) |
346-366
|
|
Merbau |
486-538
|
|
Kempas 50mmx (75,100 & 125mm) |
290-330
|
|
Rubberwood | 25x75x660mm up |
241-291
|
50-75mm Sq. |
279-311
|
|
>75mm Sq. |
301-331
|
Malaysia Plywood Prices
Malaysia ply MR BB/CC, FOB | US$ per m³ |
2.7mm |
448-509
|
3mm |
429-459
|
9mm & up |
380-450
|
Meranti ply BB/CC, domestic | US$ per m³ |
3mm
|
372-462
|
12-18mm
|
355-384
|
Other Malaysia Panel Prices
Malaysia, Other Panels, FOB | US$ per m³ |
Particleboard Export 12mm & up |
263-286
|
Domestic 12mm
& up
|
254-268
|
MDF Export 15-19mm |
315-347
|
Domestic 12-18mm
|
306-325
|
Malaysia Added Value Product Prices
Malaysia, Mouldings, FOB | US$ per m³ |
Selagan Batu Decking |
576-586
|
Red Meranti Mouldings 11x68/92mm x 7ft up | |
Grade A
|
590-603
|
Grade B
|
545-555
|
Malaysia Furniture and Parts Prices
Malaysia, Rubberwood, FOB | US$ per piece | |
Semi-finished dining table solid laminated top 2.5'x4', extension leaf |
79-95
|
|
As above, Oak Veneer |
86-100
|
|
Windsor Chair |
78-80
|
|
Colonial Chair |
76-81
|
|
Queen Anne Chair (soft seat) | without arm |
78-87
|
with arm |
78-88
|
|
Chair Seat 27x430x500mm |
64-69
|
|
Rubberwood Tabletop | US$ per m³ | |
22x760x1220mm sanded & edge profiled | ||
Top Grade
|
634-664 | |
Standard
|
617-633 |