Tropical Timber Market Information. 2 No... · Tropical Timber Market ... Prices have not reflected the recent changes in the market demand. S"winwo@d (Oree" ex-milo ... Apkindo has

V01.2 No. 11 June 1997

INTERNATIONAL TROPICAL

Producers Report

Tropical Timber Market InformationTowards Greater Transparency in the Tropical Timber Markets

Log Prices

International Prices

G"bo"

Oko"me, FOBGradeLM

gsCJ

CE

CS

I - 15 June 1997

TIMBER ORGANIZATION

ECF^ per C".",

Ozjgo, FOBGrade

LM

gsCfCE

f46, @@@Z29,500

99,00083,50067,000

Solo"0"Is""ds SIFL, 11"dic"ripe FOBPrices

Gro"p I^Kwil"

Gro"p fBPat"q, ,mmPlanefoo"e!IC

Calcphyi, ,inPome, i"

Go"@sty!"sSchizo", eri"

F: CF, , per C, ,. in

C"FFe",

f"dicctive Pi, ice

per C, ,.",

M@Icysi"

f 03,00090, @0070, @0059,500

Screw"k Log Export Prices(FOB)Mein"!t Sg JP

Sin""

s"per sino"lier"ing Sg JP

sin@!!

s, ,per sinn"K"p"r ,99 "pSeto"g"" Bam Sg "p

Forec@st

Moveme"t

DSS22@

Growp 2C",,"rin", Us$ Z38B"reke!!"

Termi""Jin "

088 Z58,,

,,

""chainged

,,

per C, ,. inUs$Z95-200 {IUs$165~Z 70 {IUs$135-J4@ \tDSS22@, 225

UsSf9@-200

Us$160,170DSS215-220 11Us$220-23@ tl

Gro"p 3Dine"in

Cellis

,, tore"in

Dyso. ^,,!"", "E"gent"Bindosperm"", 'I"ize:c

AmOOF"

,,

moat/allnott/"11$148, fir. foil""cfo""ged""cfo""gednod j^"

69

,,

DSS 120

Us$ IZ8

inoof, fullin, d. I'llSIigh, 11.11

International Tropical Timber Organization (ITTO)Pacifico-Yokohama 1-1-I Minato-inirai, Nishi-k", Yokohama 220 JAPAN

Tel: (81-45) 223-1110 Fax: (81-45) 223-1111 e. nails injadans@ino. 0r. ip

,,

Gro"p 4Camp"OSper","", Us$116 slightf"11

Us$ Z@8 slight/"!IP"rim"ri

M"Fond^s " slightf""Others (wfott^) , slightf"!IO^"erg ê41 " slightf""

69

SIjg'hi/"11,ri, h, fullslight/"11""ch""gedslight/"11,,,,,, f"11",, chainged""ch""ged

,9

69

Few changes have been recorded

International Tropical Timber Organization

C"", eroo" Log Prices

FOB

N'60/10"

JPo"s

Soyelerr@ko

Per C". in

70c"t. r. LM-C FFRZ45@ tl80c",+LM-C FF, 3125@ \I80c",+LM-C FFR175@ 1170cm+LM. C FFR165@ 11

Domestic Log Prices

Report From Br@zil

Logs at millycrdM@hog""y for Gr@ofelyeJ"tob"

G""r"b"

Meseto(white virol, !)

Rayort^, on Malaysia

Ok"""

LogsDomestic ^99 ex*logy"r41 Per C".",

08326@-270 11DR Mer""tt

03319@-J9511Bat""

Us$205-21@ 11Marb""

1783/3@-f4@ \IPeeler Core logsUs$32-33 \IR"66er, "@od

Kernp@s DSS135-145

Us$225-235 itKer"ing

Heavy rains continue to disrupt logging operations.

LogsCatb@

Orig^'frombe

EMIre/FF"", ire

orr"ad'Fr"koEkk, ?, gobeK"ssiulBi!!jin"

G""re"

Chemche"Cedrell"

per C". inUs$390DSS8211LISss511DSS45Us$46\!

Sawnwood Prices

Per C, ,, in

90cm + DSS4@60cm + DSSS@60cm + Us$55

55c", + Us$45

70c", + Us$5070c", + Us$5060c", + DSS6@

70c", + Us$45

SOC", + Us$45


Report/rom findo"esi"

Brazil

Exports of sawnwood to Asia continue to be strong. Lastyear exports totalled 340,000 Cu. in, and this is expected tobe surpassed by this year exports.

The first large scale Eucalyptus sawmill is underconstruction in south Bahia. Aracruz has a joint venturearrangement with an American company, and most of theproduction is expected to be exported to USA. The sawmillis expected to be in operation next year and a value addedmill (mouldings) will be installed immediately after startup.

Plywood!o83FCCeLogsCorelogsS","logsraft"taiogsR, ,66erwood

Pi"e

Teak

M"horni

Kernb@"gSem""gkok

Per C, ,."'

Lassi4S-Z6@ itDSS 115-12@ \IDSS14@-160 fiDSS6@-62 fiUs$37-39

Us$65-70 \IUs$105@-1250Us$290-295flUs$Z80-190

An initiative on certification is under discussion at the

national level. The initiative has been taken by ABNT(Brazilian Technical Standards Association), the nationalforum for the development of standards. ABNT is thenational representative at ISO, and the initiative has receivedstrong support from the private sector.

V01.2 NO I I June 1997

E. :,;ports"w"woodM""o8""y KD F11S FOBOKm"rket

ICJ@b" Gree"

sin" Market

03, "r"b"

dinge!jin pedr"M""ato4"atFC

,ine CCD)

per C"."'

Us$Z@30 I!DSS44@-490

2

DSS29@

DSS27@

DSS245

Us$160

Tropical Timber Marketlnformation


G/,@",,

No price changes are reported. Demand for kilnedsawnwood is outstripping supply, all kiln space iscommitted. Enquiries for Odum KD/PAR are having to berefused as plants do not have capacity over that committedto regular buyers.

R0"8th S"win Prices FOBper C, ,.",

Mired Redw@odr Us$330

low grade Oof"", 1770k@) Us$400rpcw" Us$220

IVC, "@ lired dime"sio"s Us$260LIS$21911""w" 80"reS

70cm log din, 25-75"",,, 450c", Ie, ,8th

M""o8c"y per C, ,. inF^S room", PI"31.8"IPI"s Us$480F^S ZS@mm pins 2.4m pins Us$520

Us$700Od"", FAS Zoomm

Us$400Drawc F, 4S Z. 8mpl, ,s"egre

FA^ f 5@"tripl, ,s 24n p!"s Us$640

Tatw"" Province of Chin"

kg, bber, "o0dyer C".",25nm 60"r's

50- 75nm $4""res75-100mm $4""res

G"@, e"

C!IranEmire

Ekki

usS, @

DC1,0m"

Cedre!IC

SepetirGMSj?, D)R@", tm less ,h@" 2/7,

greater tft"" 211.O"k 25m", boordr

M"pieCherry

F, ,S

FAS

F1tS

F^S

F11S

FASF11S

08538S-4"0 11Us$435-455 !!Us$485-50@ It

MCI"yst"

Domestic Sawnwood Prices

Reportfro", Bindl

Saw" Timber

E. ^!, ort(:F'08) per C, ,. ",DCrk Red Mer""ti (2.5i"s x of"s & "p)GMS select & header (:KD) Us$ 720- 735 11Seray, "Scannings (75x125KD) Us$750-75S11

DSS325-335 11Sepetir Bogr, ^Per"pok (25mm&37",",, CD)DSS93S-960\IKSem""gkok

Us$ 735- 750 it(25", in&37","Min)

Us$380-390 itUs$540-55@ itIIS$620-63@ 11LIS$730.74@ ItUs$950-98@ 11ussris@. 1200 11

Us$460

Us$270DSS46@DSS335DSS33@

Us$250DSS4i@

The Domestic market continues to be generally weak, butsome reactions have been IÎt by producers during last weekPrices have not reflected the recent changes in the marketdemand.

S"winwo@d (Oree" ex-miloNorther" Mills

M"foeg""ylyeIntob"

E"c"dy, pi"sSo"titer" Mills

'ine 41CD) Fiat Grade


Gh"""

per C, ,. inUs$830us$42011DSS398us$f7@it

Oakom", Chemcke", Amtic, isper C". in08395-/25

Us$72. Z@5

Us$105-15@

Us$ 72.105

Mill R"" 50ns@mm

50. XI@@",",

50x5@min

25x3@@", in

Mixed Redwood

40x3@@x. 3.6m

08318@

3

Us$105-24@

Tropical Timber Market Information


Rayonfrom rindo"esi"

S"win rimber

Domestic coinstr, ,ctio" material

K"", parD 6:cZ2.15x4@@cm

KD

KD

rer"ing6xZ2-Ise"21,400

2, c20c", x40@3^. 30cm, c40@

3x2@PC40@cm

per C, ,. in08333@-340 fi03345@-460 11Us$395-415

DSS5@0-52@

MCI@ysi"" Domestic Saw"woodPrices

reported that plywood is showing strong sales in Europewith firmer prices and it was reported that an increase toINDO plus 10 % was possible.

Saw"wood per C, ,. inBaton(25&Somm, loom",+) DSS38@. 40@Kernp"350mm by

Us$215-225 it(75,100&125mm)RedMe, "", I

(22,25&30m", byZ80. +", in) Us$300,315 {IR"bberwood

DSS25@-265 \!(25nm & 50mm)DSS32@-340 fl50m", $4"", esDSS36@-375 1175m",+

Mixed HardwoodPi!ing5.6 ms x5.6 ms seen@"s DSS2@@. 215

Us$28, -295 ITDSS320.340 11DSS335-345 11

Plywood (;z:cpor, , FOB)MR,CrudeBB/CC

27"tm

3",",

6m", am of "bone

WEP,GradeBB/CC

Z2-18", in

Plywood and Veneers


Gh"""

per CDLm

Us$470-49@ \!Us3,2044@\!Us$340-38@ it

Ceiba peeled veneers are accounting for 75% of plywoodveneer exports with the Us taking the bulk of the production.

rindo"coin" Plywood

Apkindo has revised its 1997 target for plywood productionfrom 10 million Cu. in to about 9.5 million Cu. in due to

revised projections of raw material supply. Exports for1997 will be targeted at around 8.2 to 8.4 million Cu. in,while domestic consumption is estimated at around I to 1.2million Cu. in for this year.

Sliced Veineer FOB perSq. ",DSSf. 20s",!fom" FCCeUs$J. @@finterior

DSS@. 65BackingRedwoods orcfoog""y, Camd@lief, Eat""in)

per Sq. ",us$1.15Us$@. 90DSS@. 55

DSS435-450

1996 statistics indicated that last year Indonesia producedabout 9.6 million Cu. in with an export volume of nearly8.5 million Cu. in. Domestic consumption for 1996 wasabout 1.05 million Cu. in. Meanwhile the Association has

Re@dy, ,Sir, !iced ,"e, ,eer flay@"$)Thick, ,ess 6mm FOB

per C". inUs$Z37@DSSZ062UsSIf49

Us$1153

FCCe

Jinierior

Backing


Sapele"egre

M@hog""yKoto

Plywood 1220 x 2440 mmGradeBB/CC, FOBCatb"for file UK incrket

4mm

6", in

9mm

12mm

Z8mm

25nm

WEP

SIg347Stg, 296SIg284S^, 275S, 8270S, 8282

4

Per C, ,. in

MR

Say278S^, 249SIg248S!8238Stg23@



41wood 1220 x 2440mmGr"ofe ofc IP'BP FOB

Ceibc/or the Germ"" ","rketper C, ,,",DM735

DM623

DM613

DM6@@

DM587

DM573

mm

6m",

mm

2",",

Sinm

8mm

ot@, 3, C"t Veneer FOBper C, ,. in

"ce ,"e"ee, I-Z. 6",",

Catbc DSS320

Us$500OtO

ridJ!@inb" DSS440

C!IF, ,, DSS440

Some 20 plywood factories in the Sandakan district of theState of Sabah have recently decided to cut their productionby 40%, beginning this month. Based on the installedcapacity of these plants, this would represent a drop of some45,000 Cu. in in plywood output per month. The decision tocut production was made after taking into consideration theunstable prices for the commodity and the demand for

Some price improvement has been felt by plywood plywood, particularly the demand in China. These Sabahexporters, but the price changes were not sufficient to producers rely heavily on the China market for their salesimprove profitability, say producers. Many plywood and China has reduced its imports since early this year.producers have reduced exports. Pine veneer production,on the other hand, is increasing. Many plywood companiesare now preferring to export veneer since the price isstructure is better. The market is expanding and significantexports have been registered to Europe (Portugal, Franceand others), Israeland also Asia( Korea and even Malaysia).

Brazili"" Plywood ""d reineer

Plywood FOBWhite ,'from (Us Marke415.2", in 072 orR)f 5",", BE/CC 1114R)

For Cartbbe"" co""tries

While pyro!" 4mm

9",",

Pine USA market

9mm OCC myB, 11Z5mm OCC 078P)

Cedro @"erto Rico M"rke4)4",",

per C, ,. in

Us$355f!o'8334sfi

A large veneer and plywood company in It acoatiara(Amazonia) was recently taken over by a Malasiancompany. Itacoatiara is becoming the centre of interest formany international companies due to its location. In theregion there are two European owned sawmills already inoperation.

MCIqj, sin" Plywood

Us$470

Us$370

DSS27@

DSS25@

FOBreineer

White Piro!" FCCe

.Sin",

me reineer (OD)

Us$8Z@

"hog""y Veineer@. 7m",

MR GradeBB/CCFOB

2.7mm

3m",

3.6", in

9.18", in

178P Grade BB/CC

9-18", in

Phe, ,orc OverjoyedJ2-18m",

per C, ,."'

V01.2 N0 11 June 1997

DSS28@-330

DSS19@-2/@ 11

pepsq. inUs$2.70

Per C, ,."

DSS480-495 \!DSS425-440 11DSS41@"420 11Us$360-37S 11

[email protected]",",9. f8mm

mint"" Province of Chin"

Us$420,430

Plywood27", in x 4 ' x 8 '

9.0",", x 4'x 8'

12-18", in

DSS495-5ZO

DSS465-480 {IUs$450-465 11

5

per C". inDSS605-6fOIDSS5@0-5Z O t!Us$455-460 tl



Domestic Plywood Prices

Brazil

Tthe rain season is finishing, but supplies of tropical timber,especially veneers from the Amazon region, are still slow.Apparently this reflects the fact that many veneer producershave closed their operations due to low profitability.

Rat", j, C"t reineer(;air. millNo, therin Mi!!)White Piro!" Face

While I, 'frol" Core

Plywoodilex-", MISO"therin MiloOrcdeMR

4", in White Viral@

15mm White Piro!"

4m", Mcfoog""y fICce

Other Panel Product Prices

Brazil

per C, ,. inUs$. 155 11DSS12@

rind@,, esic

Demand for value added products, such as furniture, hasalso slowed during the last months, but it is expected toimprove shortly. As a result of a reduction in the furnitureindustry activity, the demand of particleboard continues tobe weak.

Domestic MR plywood1:1'"rk@, t, !)9", in

J2",",

Ismm

J8mm

Per C, ,."'Us$680

Us$5J@

Us$1,420

A recent survey shows that there are 6 new projects beingstudied for reconstituted panels ( mainly particleboard andMDF). Out of the 6 projects at least 3-4 will beimplemented. This means that by the end of the centuryBrazil will have a significant surplus of MDF andParticleboard. At least two companies are studying valueadded products based on MDF, One company has alreadyordered a plant for the production of flooring material basedon MDF

Furniture Parts and Components

Tat, """ Province of Ching, finports

per C, "",Us$435-455 11Us$425,430

Us$410-42541Us$395,400 Ll

rinports C&FR"bbe, wood CIMir sects

R"bberwood",!/i"ishedg"ee" ^",, e Chatrs(arcl"ding sq/t sect)Q"ee" Am"e Legs2 J/4 ms sq""re x 18 ms2314 ms sq""re x 28 ms

E. ,;port PricesBlockbo"rd f 8",",

While Viral" Faced81C

DOMes, to Prices

E!c-", illso"tl, er" kegio, , per C".",Blockbo"rd

Ismm White Viral" Faced Us$510

15"an MCI, @g""y FCCed DSS86@PC, tidebo"rd

15mm

perpcS$2.85-3.00

per C, ,. in

Us$285\!

V01,2 NO I I June 1997

rindo"esi"

Us$f2.5-J4. @000

DSSZ. Z@-r. 2000

Us$2. Z@. 2.25e"

Other PC"els

E. *;!, ortP", tideboc, dFOB9-f8",",

nom, es!to PCr!torebo"rd9", in

f2", in

Ism",

18m",

Us$300t!

MDF Export (FOB)J2-J8", in

MDF Domestic J5-/8mm

Per C, ,. in

DSS135-145

6

Us3230/1DSS23@

DSS22@

DSS19511


DSS190-2051!Us$280-300 it


Tat, ,,"" Province of Chi"", rinpor, s

MDF per C, "inDomestic Prices

DSS4@@-4Z5 \!3",", thick

DSS4@@-4204.75m",

Z2-18m", x 4'x 8' Us$275-29@ it

Particlebo"rd

12-18mm (42c8)

MCIqysi"

PCrticleboc, dorOB)6",", & @601, e

Domestic6m", & "boye

per C, ,,",Us$Z85-195 !I

M"toysi@

MDF(:F'OB)Less Ifo@"SinnGret"er th"" 6",",

Domestic

Mo"!dings froB)Sofag"" Bat" DeckingKernb""g Sem""gkok84S to Joy""L@", mate'sc""t!ings72m", x86", in

Red MeFC"ti Mo"Idi"83Jfx6&92"tm x ;,'t "pCrude, 4GradeB

per C, ,. inUs$145-J6@ it

Prices of Added Value Products

DSS17@-190

rindo"esi@

per C". inUs$220-230DSS20@-2f @ \!Us$245-255

per C, ,. inDSS58@-595 t!

Me"I'mgsper C, ,."'IRCmi" skirti"g

d'or the firing" incrketl IIS$930-95@ 11Crow" us ting P"Iai or Jel"to"gdor Jap@"ese incrke4i Us$ 790-8@@

L"inmatedSc""Mings Us$630-64511L"", mated 80"rdr

Us$380-395 \!Fatk"to wood

L"", mated Boards

Pine

RedMer"", iMo"ratingsIzx68/92mm J: in "PGrade/I

Gr"de B

Doors (FOB)MeFainti (re41 PC, ,el doors

Grade/, Us$51-53perpcUs$46-47, ,er pcG, "deB

GradeC 08342*45per PC

IISSir@@-1250

DSS645-660 11

Us$845-855 itUs$68011

Rubberwood parts and rumit"re

Mat^, sin

Sfoqped chatr sects08-22", in 16 "~18 " synere$)

Us$2.95-3,241, erpc

DSS81@-835

V01,2 N0 11 June 1997

rimgerjoi"redlaminated 60@r's

topgr"deR"66erwood $4S

DSS815-835 \IUs$605-630IJ

Dimi"g s, ,iteSolid r"66en, ,o0d mini""tort top 3 ' x 5 '

Us$56-63e" itwith ate"sio, , led'S"", e with

Us$70-75e"itOak veineeredMDF

Us$J2.50-15.00e" itWindsor Cfo@Ir

Us$15.50-17100e" itCalo"mr Clantr

N"pole"" Chair DSS22.26e"

g"ee" ^""e Chair (with sqj? sec41Us$20"2400 flwitho"r cm

Us$24-28e" Iwi, harm

per C". in

0,93810-825+

Us$845-865

DSS44@-450

7 Tropical Timber Market Infonnation

co", in"ed o" PCge 10


Japan's Furniture Imports

Domestic demand has always been central to Japan's furniture market, which has grown as a result of the force ofdomestic production but imports are rising. Japan's furniture producers generally think of Asian producers as "furnitureproducing districtsjust a little farther south than Kyushu", and many people are worried about the large volumes of low-priced products entering the country. The Japanese industry has realised that internationalisation of the furniture businessis here to stay.

Furniture Imports by Region, ,992 - 1996million Yen

250,000

DASia .Europe ONorth America Dother

200,000

I50,000

I00,000

50,000

o1992 I993

The in a, jor issues facing Japan's furniture inariuft, cturers areconsidering how to become internationally competitive andhow to respond to the internationalisation of the furnituremarket and of its production and distribution. Domesticfurniture manufacturers are taking steps to survive in manydifferent ways. Some furniture manufacturers have begunfurniture imports, while others are shifting their productionbases overseas,

Japan sets practically no tariff barriers to furniture imports sothe furniture market is wide open. However, the furnituremarket has been led by domestic production and domesticdemand. The ratio of imports to domestic furniture remainedat about 3-5% for a long time and it has only been the surge inimports over the last 10 years that has brought it up to thecurrent 12% level,

I994

2200

2000

1.00

I995

10 Do

1400

I996

15.0

1200

1000

O 1.02

J a p a n '. F u r n Itu re P ro d u c tio n a n d Im p o rte

Boo

Goo

IGO,

400

I'Sl

20 a

400

2.21

. 509

o

1985

Japan's reliance on imports is one of the lowest of the industrialised nations. Nevertheless, internationalisation willcontinue to progress in the future and the proportion of the market supplied from imports will continue to rise, In fact,while the official customs clearance statistics indicate that the import ratio is currently 12%, the ratio of imports includingforeign wood materials and furniture made in part overseas can certainly be expected to be much higher.

80

21 ,2

531

19, ,

a I 02

. Wooden Furnilure Production

. Metal Furniture Production

, Furniture Im ports

a.

83t

10.7

7,

2.5.

V01,2 N0 11 June 1997

.70

19.0

,00

700

1.17

I30

,, 00

850

,70

1.17

1.00

734

,GB

I'D ,

70,

1.1

1902

G, 7

1.0

1993

207

190 ,

8

230

19.5



A Statistical Round up of Japan's Furniture Imports

Tariff Code

40-01 O

Wooden 40-090

Seating 61-0109401 61,020

69-01 O

69-090

Imports of Wooden Furniture by Item - 1996

30-000

Other 40-000

Furniture 50-000

9403 60-010

ValueItem Yen inil.

Doubles as use for bed, Leather covered 288,599Doubles as use for bed, nori leather corered 2,715,730Wooden frame, up holstered, leather 22,204,635Wooden frame, up holstered nori leather 22,127,319Wooden frame, leather corered 279,832Wooden Frame , nori leather co^red 12,840,200

Total Seating 60,456,3151,964,5716,827,555

I0,503,287

Wooden Office Furniture

W o0den Kitchen Furniture

Wooden Bedroom Furniture

Wooden Furniture with She Ires (excludingcupboards and bookshelres designed forhanging on walls or for stackingOther Wooden Furniture

Total Other Wooden Furniture

60.020

Wooden Frame , norileather covered

2129,

Wooden frame. leathercovered

o. 5, ,

Import Sources for Wooden Scatlng ,996

M arket

Percent

05

45

36.7

36.6

O. 5

21.2

100

20

6.9

10.5

Annual

Change175%

106%

108%

158%

120%

106%

122%

156%

I57%

I22%

Doubles as use forbed Leather covered

o 5^

1.01 3.91079,086,83199,396,154

Wooden Iram o

up holstered norileather

366%

Doubles as use forbed. nori leather

covered

45%

I .O

79.6

I00

Top Five Wooden Furniture Exporters to Japan in,996

150%

136%

136%

Malaysia17.6%

ItalyI6.8%

V01.2NollJune 1997

Wood. n Iran.up holster. d leather

377%

Taiwan P. o C

17.9%

Thailand

28.8%

9

Source : Japan Exports and Imports, Ministry of Finance, Japan

China

17.9%



B, "3:1

Edge Gl"ed Pi"e Fame!per C". in

or Kore" ISI Crude DSS79@

Us$550Us Marker

Tatwc" Province of China

"bberw@oof Cl, "ir Sects DSS2.85-3.00

"bber", o0d CT, !/misl, edg"ee" ,,""e Chairs Us$12.5-14. @e@

g"ee" A""e Legs 2.25 ms sq""re18i"s Loing Us$1.10-1.20e"

275i"s Sq""re 28 fins Loing Us$2. [email protected]"bbe, ,,,@@d/lingerjoint per C, ,. in

robletops DSS815-835

Plywood markets are weak except for thin plywood. Salesof domestic and imported plywood is slow. For half-inchplywood imported products from Indonesia lead the marketsas domestic manufacturers have reduced production.Although imports are decreasing overall, monthly importsof above 250,000 Cu. in have caused stocks to increase.

F"rat, "re

Dining sirte froB)Ork' Veineered MDF mores cmd

chatrs (6 per set1 4ii at"DSS21@-221^per set it

Dining table Cinee, y veneerDSS48-5Ze"edest"!legs

Occ"siC""I table C"er, y I, e"eerDSS32-3500top IÎ't^4ii

DeifyeredPrices

11st"" Log, L"", her cmd PC"e! Prices

Consumers Report

Logs For Plywood M",,,!f"cmri"gCfF Price Ye" per Itek"

MeFaintt (Hill, S"r"w"k)8,400L!Meat"in Mired

Meramti(Hill, S"FCw"*;)8,300 \ISTD Mixed

Mar"", illEl'i14, S"r"w@,;)Sin"11 Lot

ISM6@%, SSM4@%)than, Calophy!I"in (:FNC)cmd others

Mix L4ght H"rd, ,, o0dipNG G3-05 gradeÎOk"me (G"bornesq)Kerating ,Scr"w",;)Medi"", Me & ,!Pray"r's@row",;) Meat"",Me & ,, p

Report From Japan

Soarhe@stAsi"" Logs

Domestic plywood markets have weakened for half-inchplywood for concrete forrnwork and structural use. As aresult, importers are reluctant to be flint on log purchases.Southeast Asian log purchases have cooled.

Sowtl, east^sin" L"", ber

Perupok laminated lumber is fetching high prices as arrivalshave been small and demand is active. Wholesalers and

retailers have asked for a price cut as the recent strongerYen has reduced import costs.

7,700 I!

7,00011

5,800!!8,400 \I

V01.2 N0 11 June 1997

Logs For Sawmilli"g FOB Price Ye" per Kok, ,Mejoytis"raw@,;)

12, @00 itSe!ec,

'Bathts (S'"FC","k)11, @00 itSeiec,

9,000

8,60011

FOB Price Ye" per C, ,. inL"inber

White Sorry" 69nb"h)f 75,000 it24xJ5@",",, 4", Zs, gr"de

Mt. ed Sorry, " 24x48mm,53,000 \t1.8 - 4m, S2S

Red Oak Slidx6 ms a, ,of wider

FAS (Us Bust Cons@

10 Tropical Timber Marketlnfonnation

125,000


plywood

Famels Mill G@te Price Tokyo Arearein per sheet

Cornerate Formbo"rd

Domes, ic Prod"ctio"Iron S. EAsi",, LogsJ1.52,900xf800m", ?), pe I 1,240 tlTfoi"

2.3x9J@XI820mm, j, pe 2 350Meat"",

4.0, c9J@XI82@", in In, pe 2 5405.5x91@xJ82@",", 21), pe 2 650

per $4, It44

70

Particleb@"rdZ5mmMDF J5", in

Report From China

198,374 Cu. in in the first quarter of 1997, a drop of around27% compared to the same period last year.

Of the total imports, 104,131 Cu. in was from Malaysia, adrop of 24%; 82,654 Cu. in from Indonesia, a decline ofsome 30%.

Okoume from Gabon Popular in Shanghai

China's imports of African logs have increased very rapidlyin recent years' Before 1994, the Shanghai wood markethad been dominated by Us Douglas Fir, Spruce andHemlock logs. In 1994 and 1995 the log imports weremainly from Malaysia, and since 1996 African logs havebeen dominating log imports. Now Okoume, from Gabon,has become very popular in the Shanghai market. The priceof Okoume has increased to Us $235 from Us $225 perCu. in, while the wholesale price in China has risen to Yuan2500 per Cu. in.

In the first quarter of 1997,74,353 Cu. in of plywood wereshipped to Shantou Harbor, Guandong province, accountingfor 37.5% of the total, an increase of 92% compared to lastyear; Shanghai harbor handled 25,378 Cu. in (accountingfor 13% of the total), down by 59%; Xiaomen harborimported 22,738 Cu. in (11.5% of the total). Huanpu harbor,Guandong province imported 26,899 Cu, in (13.6% of thetotal), increasing by 99.2%; Tianjin harborimported 1,987Cu. in.

It is said that the main reasons that Okoume from Gabon

has such a good market in China are as follows:

-the logs are good for plywood production, and China needshuge amounts of raw materials for plywood manufacture

-Malaysian began to restrict the export of Lauan logs

Prices/br rinpor, ed Tropic"I Wood Proof"cts in Sfo""g.foci cmdE"ster"

Cl, inc (Y"","'c"tic metre orper sheetj

-there exists fierce competition in China's market betweendomestic plywood and imported plywood, Chinesemanufactures need a cheaper raw material than than Lauanlogs for plywood production

Kerating LogLe"8th: 6-20",Matq, ,sin" L"""" LogMixed 2500-2600

Malaysi"" L"""" with frol!@w foecr,Mticed 1200-Z4@@

Medc"g log, My""mar 2400

The Chin"'s Plywoodimporrs Fulling

According to statistics from China's Customs Office importsof plywood (consisting solely of sheets of wood) totalled

Per C, ,. in

L"""" I"inherThick"ess:5-6c",

Le"8th: 3-4m

V01.2 N0 11 June 1997

1880-2400

L"""/MCI"$10"g"e4, groovednoon"g [email protected]. JinU@--r2Spar Sq. ",Bati",, Flooring Top Grade My""",@rlax5@-70x240@",", 300-354!, erSq. inPlywoodj^Din I'mdomesin3mm 1220x224@ 41 per SI, eet

per C". in

2850.3450

Us LEImber

Ork, MayIe, CherryI"& G Cherry Flooring18n",:350.7@mum2-4m12@-1461perSq. ",

11

per C". in7000-f4@@@

Tropical Timber Marketlnfonnation


From Europe, An Update on France

In 1996 Senbo, a French wood specialist, posted a net profitof Ffr 10 million on a turnover of Ffr I billion. The groupwants to reach a 0.8 debt ratio by 1999 ( it is 1.5 today) andexpects Gautier, its bedroom furniture subsidiary, to achievetotal sales of more than Ffr I billion by the year 2001 (theywere Ffr649 millionin 1996). In 1996 Seribo's engineeringactivity (turnkey wood production plants) reported a lossof Ffr 27 million.

Eurosit, the French manufacturer of office seats with a 1997turnover of Ffr 91 million, has been acquired by Sokoa, aleading company in this sector with a turnover worth Ffr125 million. Eurosit, which lost halfofits turnover in thelast five years, is now expected to return to a I O% yearlygrowth. The combined operation will allow the newcompany to set up commercial and industrial synergies aswell as to cut raw materials costs,

Manufact"rers Prices in France

Dining I""ofeI^per Price, Cherry1509c9@CM

Lower Price, Sty'!,,, o0dIZ5, c74c",

Window

Veineti@" Blindf2@XI5@cm FFR2,3761i

Solid Woode" Doors

Kitel, e" Doors

L?, per Price, Solid Oak,58.8x49.5cm

edi"in Price, Solid Oak,58.8. r49. Sen New Line

Lower Price, Solid Oak58.8x49.5c", NewLi"e

"?, per Price, 0"k,Medi"in Price, Onk,Lower Price, 0@k,

FFR11,700

F"ratt"re rind Coinpo"eats

FF, 31,000

MouldingsMedi"", Price, PineZ. 4x, .8cm

Lower Price, PineJ. Or2.9c",

nicke" Ch"i's

Meat"in Price, Beech,Lower Price, Beecfo,Dini"g ChatrC^, per Price, Solid Cherry FFR1,690Meat"in Price, Beecfo FFR280

Lower Price, Beech, FFR/8f

FF, 310,018FFR7,920FFR6, @73

FFR571fi

FFR3@741

Orfoer News/rom E, ,rope

FFR269 t!

More kitchens were sold in Gennany in 1996 than a yearearlier. Kitchen furniture sales were worth DM 6.06 billion

(+1.7%). The German production of kitchens registered a2% increase to DM 6.95 billion in 1996, while exportsexceeded DM I billion and imports increased by 16% tomore than DM 140 million.

Xi, chem Table

Meat"in Price, Beecfo100x7@cm

Lower Price, Meinmi"eCovered 115x 74c",

PerLi". in

FFR234

FFR140

FFR8.56

FFR5, @5

Ikea is to build a 600,000 sq. ft distribution centre inThrapston (Northamptonshire UK) to supply its seven UKstores, currently supplied by distribution sites in Belgiumand Sweden. The centre will be opened by the end of theyear, Meanwhile the chain, which had sales of Stg285 inil,in the year ending August 1996, is due to open its eighthstore near Nomngham, while another three stores are beingplanned.

V01.2 N0 11 June 1997

FF56Z

FFR238

The German trading group Metro AG will sell its lossmaking furniture chain Mobel Unger GinbH. The chain,which runs 63 furniture stores, closed 1996 in the red witha turnover of DM 1.23 billion, it will be sold to a group ofinvestors in July 1997.

The UK firm Silentnight registered an increase in overallprofits due to an increased turnover of cabinets of Stg59million (+8%) and a turnover for beds of Stg113,5 million(+12%). However, losses were sustained at Meredew

12 Tropical Timber Market Information


Cabinets, a recently acquired firm and bed sales growth is the South but more readily available in other regions.expected to be down in 1997. Green and air~dried Red Oak lumber from the Appalachian

is experiencing some slowed demand and softness inAdamant, a Russian retail chain specialized in furniture trade, pricing. Much of the demand for Red Oak stems fromis to inaugurate a new furniture store in St. Petersburg by the hardwood flooring manufacturers.end of May 1997, while another shop will be opened inSeptember. At present the chain operates three furniture The situation in the Particleboard and MDF market is still

weak. Even though furniture manufacturers are using morestores

engineered boards than ever before, the industry is stillIkea has announced plans to increase its acquisition of articles reeling from over-production and declining prices.from Spanish suppliers. In 1997 the Swedish chain willspendPta 2.6 billion to buy items from Spanish companies, while Some reference prices as of June 2,1997 for lumber inin 1998 the amount of these investments could reach PIa 3.6 selected producer regions are shown below:billion.

Stompa As, Nonvegian furniture manufacturer owned by Prices for 1000 bo"rdfee, flu'81:), Z finch ithick, TopMoller Industrier, will start exporting furniture for children g""Ii@,and young people, to boost sales in UK and German markets.

IIS Industry Report

The bad weather at the beginning of this year has had a majorimpacton log availability and production of hardwood lumberin the Us, The limited log supply coincided with a strongdemand, resulting in noticeable price increases, Recently, loginventories have improved and relatively few sawmills havehad trouble harvesting. There were a few exceptions in theupper Midwest and in parts of the South. Heavy rains duringthe past month have raised river levels in some areas to thepoint where mills had to be closed.

Generally, sawmills have expanded their operations and asizeable increase in the production of green lumber was seenin May. While the general price trend for hardwood is stillmoving upward, the improved supply situation brought aboutsome easing of the pressure.

However, demand for lumber by end-users has also increasedat a fast pace. Housing starts were particularly strong in theearly part of this year. The robust demand is adding to theinflationary pressure on wood prices. Currently, most marketin the Us are booming and lumber of almost every type andgrade remains in limited supply.

M"hog""y ("t WeSI constpor, ofe",, y)an DSS2695 me cfo""ge since May Z, 1997

D Us$255@ "0 cfo""ge since May Z, 1997

MeFC"ti ("t West coastpo, t ofe, ,!0, )Clear, d"rk redan DSS222@ "@ cfo@"ge since Mcy Z, 1997Cle"r, Jigl, , redAD Us$2035 "0 ch""ge since M"j, I, 1997

Demand for Hard Maple from domestic and foreign users isparticularly heavy and production is brisk. Nevertheless, itseems that prices have peaked. The demand for Red Oak isvaried. Generally, prices have increased with the exceptionof the thicker stocks. Top grade lumber is in tight supply in

Cherry,4ppcl"cl, in, ,s

V01,2NollJune 1997

ECrd May!eNorthern kegio", an DSS22@0 + $ 60

A, D Us$Z84@ + $ 20

an DSS2J45 + $55^pp"!"chin"s

ICO Us$248@ + $ f @

Redo"k

Nortfter" kegio"

So"titer" kegio, ,

APPCl"chin"s

an Us$f573 ino changeI'D DSSJ3@@ "0 chaingeI'D DSSr298 + $50

I'D DSSZ@f @ "o chc, ,gean DSSZ4S8 ,, 0 chaingeI'D DSSZZ00 - $5

13 Tropical Timber Market Infomiation


White O@k

Norther" kegi@"

So"the rin kegio"

^pp"!"chic"s

an Us$J37@ ,, 0 changeAD Us$975 "@ cfo@"gean Us$Z27@ ,,@ cl, cmgeI'D Us$940 + $J@

11:0 Us$1443 ,,@ cfo""geAD Us$l@98 "@ cfo"" e

JP'"I, ,"t

'PP"inchi""sThe supply of Read Oak will greatly increase in the nextf^w months. This may lead to softer prices or at least stopthe price increases of the recent past. As many secondary

Analysts believe that the conditions in the Us will remain wood products manufacturers have learned how tofavorable for lumber producers in the near future, but the successfully use lower grade lumber, the demand for suchpace of activity will be less hectic than during the past three lower grades has picked-up noticeably and prices will bemonths. Apart from the traditional summer vacation period, less prone to decline.economic growth is likely to slow down to a moresustainable level.

an DSSZ948 "0 cfo""BeAD DSS1385 "0 ch""ge

The domestic demand for White Oak will remain strongand keep prices at their present fairly high level, however,

The modest up-trend of interest rates will continue and put export demand for White Oak is only fair.a damper on housing construction. Demand for "big-ticket"durable consumer goods, including furniture may also be Walnut production will stay within narrow limits this year.affected negatively. There seems to be a slight increase in the use of Walnut by

American manufacturers. On the other hand, exports willThe strength of the dollaris an additional concern as imports remain subdued. Under this scenario, the risk of over-of secondary wood products, including furniture, are production and declining prices is of little significance.flooding the country. This coincides with the continuedweakness of many overseas economies, thus curtailing theAmerican export potential of hardwoods,

Cherry is the most popular species of wooden householdfurniture manufacturers. There is also a strong demand inthe export markets for upper grade Cherry.

Demand for good quality lumber remains extremely strongand prices are high. Recently some decline in the usage ofCherry was observed as manufacturers begin to substitutethe wood with other less costly species, Logging and lumberproduction of Cherry has been stepped-up, but this willprobably not be enough to noticeably dampen prices forquality wood in the near future.

While export shipments have remained strong to the FarEast, shipments to many European destinations (UnitedKingdom, Belgium and Holland) are slow. Also, oninternational markets, U. S. hardwood lumber producers areconfronted with increasing competition from several newnon-traditional overseas sources, including countries fromthe former East Block.

Under this scenario a situation of lumber overproductionmay occur in the second half of this year. A level ofabundant supply, combined with a possible decline indemand, may lead to price reductions for some species.

This general picture, however, should not detract from thefact that some species, such as Cherry, White Oak and SoftMaple, will enjoy continued strong demand and prices willremain firm.

V01.2 NO I I June 1997 14 Tropical Timber Marketlnformation


Cameroon

Central African Republic

Congo, People's Rep.Cote d'Ivoire

Gabon

Ghana

Liberia

Togo, Rep.

Zaire, Rep.Cambodia

FiriIndia

Indonesia

Malaysia

Myanmar

Papim New Guinea

PhilippinesThailand

Bolivia

Brazil

Colombia

ECLiador

Guyana

Hondiiras, Rep.Panama

Peru

Trinadad and To bagoVeneziÎa

World Value of the Us Dollar 9th June 1997

C. FA. Franc

C. FA. Franc

CF. A. Franc

C. FA. Franc

CF. A. Franc

CGdi

Dollar

CF. A. Franc

New Zaire

Riel

Dollar

Rupee

Rupiah

Ringgit

KyatKina

Peso

Baht

Boliviano

Real

Peso

SICre

Dollar

LempiraBalboa

New Sol

Dollar

Bolivar

584.3

584.3

584.3

584.3

584.3

2050

584.3

122500

2738

14/7

35,7975

2429.85

25145

62109

1,3928

26,3885

24.03

5.23

1,072

1075.15

3926.5

142.3

13/05

26605

6,257S

486.25

Australia

Canada

China

EgyptAustria

BelgiumDenmark

Finland

GermanyGreece

Ireland

ItalyNetherlands

Portugal

îainS\ACden

United Kingdom

Japan

NepalNew Zealand

Nor uny

Korea, Rep. ofSwitzerland

Russian Fed.

Dollar

Dollar

Yi^n

Pound

SchillingFranc

Krone

Markka

Mark

Drachma

punt

Lira

Guilder

ESCudo

Pesata

Krona

Pound

Yen

RupeeNZ Dollar

Krone

Won

Franc

Ruble

13/45

13787

82932

33952

12,1985

35,775

6475

5204

17002

275.39

0,676

1702.45

1.79

174.93

14627

77675

06148

1159/7

56.95

14544

71725

890.5

1,4557

5764.5

Loyale Merchant, a grade of log parcelLM

FOB Free-on-Board

SSQ Select Sawmill QualityAir DryAD

Boule A Log Sawn Through and Throughthe boards from one log are bundledtogetherBB CC Grade B faced and Grade C backed

PlywoodMBF 1000 Board Feet

Sq. Ft Square FootFFR French Franc

Koku 0,278 Cu. in or 120BF

V01,2 NO I I June 1997

libbre"fujio, ,s

Cubic Metre

Sawmill QualityKiln DrySawnwood Grade First and

Second

WBP Water and Boil Proof

MR Moisture Resistant

per piecePCeachea

Board FootBF

MDF Medium Density FibreboardF. CFA CFA Franc

till Price has moved u or down

Cu. in

SQKD

FAS

15 Tropical Timber Market Infomiation


This Market Service can be accessed on the ITrO Internet Home Page at:

http://WWW. itto. or. ip

h is also freely available by E-mail.To be included on our E-mail mailing list please send your E-mail address to:

injadams@itto. or. ip

V01,2 NO I I June 1997 16 Tropical Timber Market Information

Documents

Tropical Timber Market Information. 2 No... · Tropical Timber Market ... Prices have not reflected the recent changes in the market demand. S"winwo@d (Oree" ex-milo ... Apkindo has