The series of auctions in Central India continued and prices were firmer as buyers were active having refused to participate in the sales in Gujarat.
Auction sales at depots of Western India Because many buyers refused to attend the most recent eauction as the terms of trade and the transparency in dealings were considered unacceptable the sales were postponed.
Domestic natural forest teak logs are preferred over imported plantation teak as logs from domestic forests are of a greater diameter and thus the sap is proportionally smaller which results in higher recovery rates. Teak log buyers are hopeful that their concerns on the eauction process can be address providing for a quick resumption of sales to clear the backlog of timber in the depots.
US$4.5 billion investment in housing
The CREDAI newsletter of December last year reported the real estate sector attracted US$4.5 billion in investments between January and September last year with Mumbai topping the list of recipients. Of the total investment, land and development stage transactions attracted nearly 60 per cent from domestic as well as foreign entities.
Re-zoning Mumbai to boost housing development
In related news the VOX news site has an analysis of the negative impact of restrictions on residential housing in India and the initiative of the government to rezone parts of Mumbai.
This rezoning says Matthew Yglesias in the VOX write-up “is probably the most important urban-policy development in the world today. It should fairly dramatically increase living standards in one of the biggest cities on the planet and possibly do a great deal to drive economic growth forward throughout India.”
The VOX report says “Greater Mumbai's governing authority is proposing a sweeping change to the permitted Floor Space Index (FSI, the ratio of a building's total floor area to the size of the piece of land upon which it is built).
Under the plan, Mumbai is set to be divided into five zones with an FSI of 8 allowed in the very densest areas and FSIs in the 5-6 range in places well-served by mass transit. Fifty-eight percent of the city's land area would remain below 3.5, resulting in an increase in the amount of building allowed in many areas.
Because Mumbai offers job opportunities people continue to move into the city putting a massive strain on housing development which is constrained by regulations which have not keep pace with urbanisation. The VOX report says in 2009 the Mumbai resident had an average residential space only 12% of that of Shanghai residents.”
Domestic natural forest teak log prices
4-5 m length | ||
91 cms & up girth | 1800-2000 | |
76 to 90 cms girth | 1700-1800 | |
61 to 75 cms girth | 1400-1600 | |
46 to 60 cms girth | 1200-1350 | |
3-4 m length | ||
91 cms & up girth | 1450-1550 | |
76 to 90 cms girth | 1300-1400 | |
61 to 75 cms girth | 1250-1350 | |
46 to 60 cms girth | 1000-1100 | |
2-3m length | ||
91 cms & up girth | 1250-1300 | |
76 to 90 cms girth | 1100-1200 | |
61 to 75 cms girth | 1000-1100 | |
46 to 60 cms girth | 900-1000 |
Current C&F prices for plantation teak
C&F prices have not changed over the past two weeks
US$ per m3 | |
Belize logs | 350-400 |
Benin logs | 367-680 |
Benin sawn | 530-872 |
Brazil logs | 402-797 |
Brazil squares | 390-680 |
Cameroon logs | 365-510 |
Colombia logs | 520-650 |
Congo logs | 380-710 |
Costa Rica logs | 414-840 |
Côte d'Ivoire logs | 303-720 |
Ecuador squares | 315-540 |
El-Salvador logs | 377-712 |
Ghana logs | 286-650 |
Guatemala logs | 404-550 |
Guyana logs | 300-450 |
Uganda teak sawn | 680-900 |
Kenya logs | 350-600 |
Laos logs | 300-605 |
Liberia logs | 350-460 |
Malaysian teak logs | 363-525 |
Nicaragua logs | 350-596 |
Panama logs | 319-750 |
PNG logs | 400-575 |
Sudan logs | 479-820 |
Tanzania, teak, sawn | 307-885 |
Thailand logs | 460-700 |
Togo logs | 230-715 |
Trinidad and Tobago logs | 420-680 |
Uganda logs | 408-860 |
Uganda Teak sawn | 680-900 |
Variations are based on quality, length and average girth of logs
Prices for domestically milled sawnwood from imported logs
Current exmill prices for air dried sawnwood are shown below. Prices have not changed over the past two weeks.
Sawnwood, (Ex-mill) (AD) | Rs. per ft3 |
Merbau
|
1550-1650 |
Balau
|
1700-1900 |
Resak
|
1200-1400 |
Kapur
|
1250-1300 |
Kempas
|
1100-1200 |
Red Meranti
|
925-975 |
Radiata pine AD
|
550-650 |
Whitewood
|
600-650 |
Variations are based on quality, length and average girth of logs
Prices for domestically milled Myanmar teak
Prices are generally stable but prices for decking have seen a correction.
Sawnwood (Ex-mill) | Rs. per ft3 |
Myanmar Teak (AD) | |
Export Grade F.E.Q.
|
8000-18500 |
Plantation Teak A grade
|
6000-7000 |
Plantation Teak B grade
|
4250-4500 |
Plantation Teak FAS grade
|
3500-3700 |
Price variations depend mainly on length and cross section
Imported 12% KD sawn wood prices per cu.ft ex-warehouse
No price changes have been reported.
Sawnwood, (Ex-warehouse) (KD) | Rs per ft3 |
Beech | 1300-1350 |
Sycamore | 1300-1400 |
Red oak | 1500-1650 |
White Oak | 1600-1800 |
American Walnut | 2300-2400 |
Hemlock clear grade | 1300-1400 |
Hemlock AB grade | 1100-1200 |
Western Red Cedar | 1600-1650 |
Douglas Fir | 1200-1300 |
Price variations depend mainly on length and cross section.
Prices for WBP Marine grade plywood from domestic mills
Plywood, | Rs per sq.ft |
Ex-warehouse. (MR Quality) | |
4 mm | 40.00 |
6 mm | 53.50 |
9 mm | 67.75 |
12 mm | 84.00 |
15 mm | 111.00 |
18 mm | 117.00 |
Domestic ex-warehouse prices for locally manufactured MR plywood
Locally Manufactured Plywood “Commercial Grade” |
Rs per sq.ft | |
Rubberwood | Hardwood | |
4mm | Rs.20.40 | Rs.30.20 |
6mm | Rs.31.00 | Rs.38.85 |
8mm | Rs.39.00 | Rs.47.00 |
12mm | Rs.46.40 | Rs.57.00 |
15mm | Rs.57.00 | Rs.69.50 |
19mm | RS.66.00 | Rs.78.00 |
5mm Flexible ply | Rs.41.25 |