Ghana’s market performance improves in second quarter
Prices of Ghana’s timber and wood products, particularly
teak logs and poles to India, improved by an average of
USD30/m³ during the second quarter of 2008. The price
rise was USD10/m³ more than the average of USD20/m³
in the first quarter. Harvesting from private teak
plantations accounted for about 70% of the teak contracts
approved during the second quarter.
While buyers adjusted prices of lumber upward to compensate for the fall in the value of the US dollar vis-àvis the euro, it was difficult to achieve the minimum Guiding Selling Prices (GSP) for plywood and rotary veneer, which form the bulk of exports to the American markets. Prices of ceiba rotary veneer were down an average of USD27/m³ when compared to the GSP of USD382/m³.
TIDD Pricing Committee removed the 5% price rebate on wood products to the US market, which had an impact on prices of plywood and rotary veneer. It is anticipated that buyers would gradually respond by adjusting prices upward to achieve the GSP during the third quarter. A new rotary veneer processing line has been installed by John Bitar and Company Limited to manufacture rotary veneer with a thickness of 1mm and below. The first contract for the product was submitted to TIDD for approval during the second quarter, with prices of EUR1000/m³ for sapele/mahogany/edinam and EUR650/m³ for koto.
Prices of air-dried dahoma lumber to the Middle East, the main destination for this product, showed signs of improvement from the current asking price of USD350/m³. Prices of some contracts submitted for approval during the second quarter were between USD370/m³ and USD400/m³.
TIDD contract approval rises 25%
According to data from the Contract Section of the Timber Industry Development Division (TIDD) of the Forestry Commission of Ghana, a total contract volume of 196,201m³ was processed and approved during the second quarter of 2008. This represented a 25% increase over first quarter figures for 2008. Furniture parts processed and approved during the second quarter dropped by 78.2% to 11,948 pieces when compared to the first quarter. The contract volumes for plywood, poles, billets and logs increased sharply in the second quarter. Plywood rose 41.1% while poles/billets/logs jumped by 104.7% when compared to the first quarter. Plywood contributed 34.1% of the total contract volume during the period under review, regaining its position as the highest contributor to total approved contract volumes.
With the exception of lumber and furniture parts, which dropped in volume 22.3% and 78.2% respectively when compared to the first quarter, contract volumes rose for all major exportable products. Compared to the previous quarter’s figures, contracts for sliced veneer, rotary veneer, finger-jointed and dowels increased 47.4%, 36.9%, 82.8% and 77.8%, respectively, representing volumes of 13,636m³; 6,565m³; 5,532m³ and 192m³.
While buyers adjusted prices of lumber upward to compensate for the fall in the value of the US dollar vis-àvis the euro, it was difficult to achieve the minimum Guiding Selling Prices (GSP) for plywood and rotary veneer, which form the bulk of exports to the American markets. Prices of ceiba rotary veneer were down an average of USD27/m³ when compared to the GSP of USD382/m³.
TIDD Pricing Committee removed the 5% price rebate on wood products to the US market, which had an impact on prices of plywood and rotary veneer. It is anticipated that buyers would gradually respond by adjusting prices upward to achieve the GSP during the third quarter. A new rotary veneer processing line has been installed by John Bitar and Company Limited to manufacture rotary veneer with a thickness of 1mm and below. The first contract for the product was submitted to TIDD for approval during the second quarter, with prices of EUR1000/m³ for sapele/mahogany/edinam and EUR650/m³ for koto.
Prices of air-dried dahoma lumber to the Middle East, the main destination for this product, showed signs of improvement from the current asking price of USD350/m³. Prices of some contracts submitted for approval during the second quarter were between USD370/m³ and USD400/m³.
TIDD contract approval rises 25%
According to data from the Contract Section of the Timber Industry Development Division (TIDD) of the Forestry Commission of Ghana, a total contract volume of 196,201m³ was processed and approved during the second quarter of 2008. This represented a 25% increase over first quarter figures for 2008. Furniture parts processed and approved during the second quarter dropped by 78.2% to 11,948 pieces when compared to the first quarter. The contract volumes for plywood, poles, billets and logs increased sharply in the second quarter. Plywood rose 41.1% while poles/billets/logs jumped by 104.7% when compared to the first quarter. Plywood contributed 34.1% of the total contract volume during the period under review, regaining its position as the highest contributor to total approved contract volumes.
With the exception of lumber and furniture parts, which dropped in volume 22.3% and 78.2% respectively when compared to the first quarter, contract volumes rose for all major exportable products. Compared to the previous quarter’s figures, contracts for sliced veneer, rotary veneer, finger-jointed and dowels increased 47.4%, 36.9%, 82.8% and 77.8%, respectively, representing volumes of 13,636m³; 6,565m³; 5,532m³ and 192m³.
| Ghana Log Prices |
||||
| Ghana logs, domestic | US$ per m³ | |||
| Up
to 80 cm |
80cm+ | |||
| Wawa | 100-115 |
120-145 |
||
| Odum Grade A |
160-170 |
175-185 | ||
| Ceiba | 90-100 |
105-120 | ||
| Chenchen | 60-88 |
90-112 | ||
| Khaya/Mahogany (Veneer Qual.) | 70-90 | 95-120 | ||
| Sapele Gradea A |
130-150 |
155-175 |
||
| Makore (Veneer Qual.) Grade A | 125-135 | 140-166 | ||
| Ghana Sawnwood
Prices |
||||
| Ghana Sawnwood, FOB | US$ per m³ | |||
| FAS 25-100mm x 150mm up x 2.4m up |
Air-dried | Kiln-dried | ||
| Afrormosia | 855 | - | ||
| Asanfina | 490 | 560 | ||
| Ceiba | 200 | 255 | ||
| Dahoma |
330 |
390 |
||
| Edinam (mixed redwood) |
400 |
470 |
||
| Emeri | 425 | 485 | ||
| African mahogany (Ivorensis) |
585 | 670 |
||
| Makore |
510 |
585 | ||
| Niangon |
550 |
- |
||
| Odum |
650 | 720 | ||
| Sapele |
540 |
600 |
||
| Wawa 1C & Select |
260 |
285 |
||
| Ghana sawnwood, domestic |
US$ per m³
|
|||
| Wawa | 25x300x4.2m |
255 | ||
| Emeri | 25x300x4.2m | 350 | ||
| Ceiba | 25x300x4.2m |
204 | ||
| Dahoma |
50x150x4.2m |
318 |
||
| Redwood |
50x75x4.2m |
274 | ||
| Ofram |
25x225x4.2m |
330 |
||
| Ghana Veneer Prices |
||||
| Rotary Veneer, FOB | US$ per m³ | |||
| CORE (1-1.9mm) | FACE (<2mm) | |||
| Bombax |
315 |
350 |
||
| Kyere, Ofram, Ogea & Otie | 325 | 360 | ||
| Chenchen | 315 | 360 | ||
| Ceiba | 360 | 305 | ||
| Mahogany | 415 | 450 | ||
| The above prices are for full sized panels, smaller sizes minus 15%. Thickness below 1mm would attract a 5% premium. | ||||
| Rotary Veneer, FOB Core Grade 2mm & up | US$ per m³ | |||
| Ceiba | 245 | |||
| Chenchen, Ogea & Essa | 295 | |||
| Ofram | 305 | |||
| Slices Veneer, FOB | US$ per m² | |||
| Face | Backing | |||
| Afrormosia | 1.80 | 1.00 | ||
| Asanfina | 2.00 | 0.80 | ||
| Avodire | 1.12 | 0.80 | ||
| Chenchen | 0.97 | 0.53 | ||
| Mahogany | 1.40 | 0.79 ⇓ | ||
| Makore | 1.40 | 0.90 | ||
| Odum | 1.66 | 1.00 | ||
| Ghana Plywood Prices | ||||
| Plywood, FOB | US$ per m³ | |||
| B/BB, Thickness | Redwoods | Light Woods | ||
| WBP | MR | WBP | MR | |
| 4mm | 560 | 475 | 500 | 365 |
| 6mm | 340 | 325 | 335 | 285 |
| 9mm | 380 | 300 | 290 | 270 |
| 12mm | 300 | 300 | 280 |
255 |
| 15mm | 310 | 280 | 300 | 260 |
| 18mm |
300 |
280 | 285 |
250 |
| Grade AB/BB would attract a premium of 5%. BB/BB would be 5% less, C/CC 10% less and CC/CC 15% less. | ||||
| Ghana Added Value Product Prices | ||||
| Parquet flooring 1st | FOB € per m² | |||
| 10x60x300mm | 10x65-75mm | 14x70mm | ||
| Apa | 12.00 | 14.47 | 17.00 | |
| Odum | 7.80 | 10.18 | 11.00 | |
| Hyedua | 13.67 | 13.93 | 17.82 | |
| Afrormosia | 13.72 | 18.22 | 17.82 | |
| Grade 2 less 5%, Grade 3 less 10% | ||||