West Africa prices unchanged despite market concerns

No changes were reported for West African log export prices, which have now held steady over the past few weeks. China and India continue as the major buyers and apart from a few relatively minor recent adjustments due to demand pressures, prices for the main species have remained remarkably steady over recent months.

Despite the rather gloomy forecasts for the US and European economies, the timber trade has not so far discerned any major effects, though West African exporters are expressing some concern that sawn lumber prices may be vulnerable should signs of real economic downturn begin to impact construction and associated trades through the second quarter. Log prices are more likely to remain steady as supply is curtailed through the full implementation of the quota system in Gabon. The latest reports are that the quota is now in place and producers and exporters are subject to the quotas being finalized. The quota system in Congo Brazzaville has been in force for some months and affected the total supply available for export from the region. Equatorial Guinea recently announced a total ban on log exports from its much depleted forest resources. However, there are reports that logs are still being exported. It is not yet clear whether this is only the completion of existing contracts or if the ban is being flouted.

For sawn lumber, prices are also unchanged. Exporters nervous over competition from lower priced Malaysian meranti have not seen their fears realized and demand from Europe for the favorite species is within the normal range for the winter season. Sapele supply is still very much tighter than in the past because of the lower availability in recent months from Central African Republic, while sipo is in normal high demand, especially from German buyers.

House sales in the UK have slowed but the overall shortfall in the number of new houses being constructed is to be addressed by government plans for up to 3 million new houses to be built, some on controversial Greenfield sites over the next few years. Though this would benefit mainly the suppliers of structural softwoods, there would be demand for new furniture and fittings in hardwoods, including the fashionable solid wood flooring. There are some signs that the hardwood flooring market in the UK has slowed recently, with stronger competition forcing prices lower. This far down the product line it could be quite some time before any major effect was felt in the West African supply countries.

*West Africa logs, FOB*	*€ per m3*
Asian market	LM	B	BC/C
Acajou/ Khaya/N'Gollon	221	190	175
Ayous/Obéché/Wawa	221	205	168
Azobe & Ekki	152	152	91
Belli	198	198	-
Bibolo/Dibétou	168	167	114
Bubinga	533	457	381
Iroko	289	274	259
Okoume (60% CI, 40% CE, 20% CS)	-	150	-
Moabi	335	335	282
Movingui	205	190	152
Niove	129	129	-
Okan	198	198	152
Padouk	289	289	267
Sapele	297	297	282
Sipo/Utile	335	305	267
Tali	190	190	152
Gabon Okoumé logs, FAS*	€ per m3
Grade	Asia	Europe
QS	213	219
CI	171	171
CE	146	150
CS	108	111

*Based on SNBG official prices

West Africa sawnwood, FOB		€ per m3
Ayous	FAS GMS	396
Ayous	Fixed sizes	427
Okoumé	FAS GMS	375
	Sel. & Bet. GMS Italy	310
	Sel. & Bet. fixed sizes	-
Sipo	FAS GMS	630
	FAS fixed sizes	-
	FAS scantlings	645
Padouk	FAS GMS	600
	FAS scantlings	630
	Strips	425
Sapele	FAS Spanish sizes	620
Sapele	FAS scantlings	635
Iroko	FAS GMS	458
	Scantlings	519
	Strips	304
Khaya	FAS GMS	396
Khaya	FAS fixed	427
Maobi	FAS GMS	630
Maobi	Scantlings	645
Movingui	FAS GMS	460

West Africa prices unchanged despite market concerns

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