The siec drewna

The slowdown in new business has continued. The European market has been very depressed, and while there was some activity for Asian destinations even this was at a much lower level than volumes that producers would have considered normal only a few months ago. Producers were matching this slowdown with reductions in output through temporary closures of concessions and a reduction in workforce. There were concerns that the effects on finance and banking arrangements may cause problems for previously negotiated agreements.

Okoume has been particularly hard hit. There has been business for new, fresh logs, but there was a considerable stock of older logs that would have had to be sold at low prices, with the risk this could have also depressed the overall okoume log market. Some producers were reported to have ceased logging okoume and were concentrating on the more marketable red species, while others were logging only for their sawmills and veneer mills. As noted previously, market conditions in all areas have been very difficult and there was no sign of any upturn. Although the asking prices for many log and lumber species were reportedly relatively stable, there were some changes, a few moving upward on demand for Asia and short supply while the majority either moved down or remained unchanged. There was a tendency to hide the fierce negotiations on price which were taking place, with sapele very hard hit and no baseline price. Buying for Europe was very quiet. Internal trade between European countries was reported as being more than usually competitive with some transactions at below cost. Possibly stockists were prepared to clear existing stock at below cost price as they could replace stock with imports at the present lower price levels.

West Africa logs, FOB	€ per m³
Asian market	LM	B	BC/C
Acajou/ Khaya/N'Gollon	221 ⇑	191 ⇑	137
Ayous/Obéché/Wawa	206 ⇑	206 ⇑	168 ⇑
Azobe & Ekki	168	168	122
Belli	168 ⇓	168 ⇓	-
Bibolo/Dibétou	168 ⇑	168 ⇑	114
Bubinga	533	457	381
Iroko	289 ⇑	274 ⇑	259 ⇑
Okoume (60% CI, 40% CE, 20% CS)	135	-	-
Moabi	305 ⇓	289 ⇓	267 ⇓
Movingui	191	191	137
Niove	129	129	-
Okan	198	198	152
Padouk	259 ⇓	259 ⇓	229
Sapele	259 ⇓	259 ⇓	221 ⇓
Sipo/Utile	335	305	267
Tali	191 ⇑	191 ⇑	152
Okoume (40% CI, 40% CE, 20% CS), FAS China	142	-	-

West Africa sawnwood, FOB		€ per m³
Ayous	FAS GMS	335
	Fixed sizes	-
Okoumé	FAS GMS	300
	Sel. & Bet. GMS Italy	250
	Sel. & Bet. fixed sizes	-
Sipo	FAS GMS	610
	FAS fixed sizes	-
	FAS scantlings	630
Padouk	FAS GMS	585
	FAS scantlings	610
	Strips	425
Sapele	FAS Spanish sizes	520
	FAS scantlings	540
Iroko	FAS GMS	458
	Scantlings	519
	Strips	304
Khaya	FAS GMS	396
	FAS fixed	427
Maobi	FAS GMS	600
	Scantlings	610
Movingui	FAS GMS	420