The current quiet market demand in Europe continues unchanged from January and this is expected to remain through until the end of the first quarter, and possibly well into April or May. On the other hand, West and Central African exporters report good steady business in the Middle East and also a discernible improvement in demand in Asian markets where purchases did not slow over the New Year period this year as much as in previous years.
Demand for logs continues to be buoyant with okoume the market leader. There are reports of an upturn in sales okan and reports of tali prices firming, all of which is good news. Padouk prices continue to be rather volatile depending on whether or not buyers for India are in the market. Currently, padouk prices are easing.
Hints of weakening demand in France baffle analysts
Producers report a few minor price changes due mainly to shifts in demand for individual species or specifications rather than any significant change in market conditions. However, demand from French importers has weakened but analysts are hard pressed to pinpoint the precise reason for this.
The economy in France, while not strong, has not shown any particular weakness. It may be that some large infrastructure projects have been shelved or that work on these has been delayed. The indications are that the furniture and smaller carpentry businesses in France are reasonably busy satisfying the renovation market.
Shift to alternatives and substitutes
Producers are sensing some fundamental changes in species preferences and are detecting a trend towards the use of temperate hardwoods rather than tropical timbers. This change in taste has also been seen in the UK and other European countries but seems to have taken hold in wider markets. Compounding the concerns of tropical timber producers is the growing interest of consumers in substitute materials such as plastics for doors and window construction instead of the traditional wooden framing.
Producers confident of medium term prospects, but
Producers appear reasonably confident that the current market stability will be maintained for the short to medium term but are expressing some concern over the slight downturn in orders for the French market.
However, it is hard to see any resurgence in European demand for tropical timbers even over the longer term unless there is some serious and targeted promotion to retake market share from temperate timbers.
There seems little immediate prospect in the markets of Spain and Greece, once major consumers of tropical timber and while the Italian market for some specific timbers has held up fairly well, even here uncertain economic conditions suggest a slowing of demand.
Log Export Prices
| West Africa logs, FOB | € per m³ | ||
| Asian market |
LM
|
B
|
BC/C
|
| Acajou/ Khaya/N'Gollon |
220
|
220
|
155 |
| Ayous/Obéché/Wawa |
225
|
210
|
150
|
| Azobe & Ekki |
235
|
230
|
150
|
| Belli |
230
|
230
|
-
|
| Bibolo/Dibétou |
150
|
145
|
|
| Iroko | 250 |
225
|
210
|
| Okoume (60% CI, 40% CE, 20% CS) (China only) | 335▲ | 330▲ |
-
|
| Moabi | 280▼ | 270▼ | - |
| Movingui | 215▼ |
215▼
|
175
|
| Niove |
165
|
165
|
-
|
| Okan |
250
|
250 |
-
|
| Padouk |
310
|
280 |
210
|
| Sapele |
280
|
270
|
180
|
| Sipo/Utile |
310
|
285
|
190
|
| Tali | 300▲ | 300▲ |
-
|
Sawnwood Export Prices
| West Africa sawnwood, FOB |
€ per m³
|
|
| Ayous | FAS GMS | 340▲ |
| Bilinga | FAS GMS | 520 |
| Okoumé | FAS GMS |
480
|
| FAS. fixed sizes | 255 | |
| Std/Btr GMS |
350
|
|
| Sipo | FAS GMS |
550
|
| FAS fixed sizes | - | |
| FAS scantlings | 550 | |
| Padouk | FAS GMS | 790▼ |
| FAS scantlings | 790▼ | |
| Strips | 400 | |
| Sapele | FAS Spanish sizes | 535 |
| FAS scantlings |
555
|
|
| Iroko | FAS GMS | 565 |
| Scantlings | 590 | |
| Strips |
440
|
|
| Khaya | FAS GMS |
450
|
| FAS fixed |
470
|
|
| Maobi | FAS GMS |
550
|
| Scantlings |
550
|
|
| Movingui | FAS GMS |
410
|