Except for a few low volume ‘spot’ sales, buyers for China remain out of the market and there is no indication as to when major log buyers for this market will reurn. In response to the weak demand, West and Central African exporters have maintained solidarity by holding firm on prices and at the same time are trimming back production volumes.
Prices for okoume logs have fallen again and producers have come to accept that a recovery in export volumes and FOB prices is unlikely in the medium term. Interest in Beli has waned and prices are under pressure say producers.
The general view is that most buyers seem to be looking for a wider range of the less popular species taking advantage of the lower prices. This is good news for exporters but volumes ordered tend to be small.
FOB prices for sawnwood are underpinned by the steady sales into EU markets but remain unchanged from the beginning of November. Sapele prices for EU markets are currently stable but producers are concerned that there will be growing competition from meranti as Malaysian exporters take advantage of the weaker ringgit to squeeze out sapele.
As mentioned in previous reports this redwood/meranti competition also extends to markets in the Middle East. Analysts are concerned that this is a risk to market price stability at a time when overall purchase volumes are low and not likely to be stimulated by price cuts.
Supply side news
On the supply side, forest authorities in Congo Brazzaville are very strictly enforcing the log export quota system under which log export volumes are determined by the volume of sawnwood sales. Producers in Congo Brazzaville are finding the sawnwood market hard going in the current market slowdown.
On 1 January 2016 Cameroon will fully implement restrictions on prime species log exports. This has been welcomed by domestic sawmillers which have struggled to source enough high grade logs for their growing and successful sawnwood export markets.
Crackdown on illegal Kevazingo felling
The newly appointed Minister for Forests in Gabon, is reported to have initiated a crackdown due to allegations of corruption by officials in some areas of the country related to illegal logging and export of kevazingo. International media reports say some officials have been taken into custody and that an investigation is underway into the felling and trade in Kevazingo, more commonly known in international markets as Bubinga, a rare hardwood sought after in Asia.
Log Export Prices
West Africa logs, FOB | € per m³ | ||
Asian market |
LM
|
B
|
BC/C
|
Acajou/ Khaya/N'Gollon |
230
|
230
|
160 |
Ayous/Obéché/Wawa |
260
|
260
|
180
|
Azobe & Ekki |
230
|
230
|
160
|
Belli |
250
|
250
|
-
|
Bibolo/Dibétou |
150
|
145
|
|
Iroko | 330 |
290
|
260
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 200 |
200 |
160 |
Moabi | 335 | 305 | 225 |
Movingui | 210 |
210
|
160
|
Niove |
160
|
160
|
-
|
Okan |
250
|
250 |
-
|
Padouk |
310
|
285 |
225
|
Sapele | 305 |
305 |
220 |
Sipo/Utile |
345
|
340 |
265
|
Tali | 320 | 320 |
-
|
Sawnwood Export Prices
West Africa sawnwood, FOB |
€ per m³
|
|
Ayous | FAS GMS | 410 |
Bilinga | FAS GMS | 500 |
Okoumé | FAS GMS |
350
|
Merchantable | 225 |
|
Std/Btr GMS | 270 |
|
Sipo | FAS GMS |
610
|
FAS fixed sizes | 610 |
|
FAS scantlings | 640 |
|
Padouk | FAS GMS | 1010 |
FAS scantlings | 1000 |
|
Strips | 680 |
|
Sapele | FAS Spanish sizes | 610 |
FAS scantlings | 620 |
|
Iroko | FAS GMS | 610 |
Scantlings | 690 |
|
Strips |
440
|
|
Khaya | FAS GMS |
450
|
FAS fixed |
460
|
|
Maobi | FAS GMS |
610
|
Scantlings |
630
|
|
Movingui | FAS GMS |
420
|