Okume demand and hence prices continue to be very depressed in contrast to prices and demand for sapele and sipo which remain firm. Padauk is also in demand and prices have improved slightly.
The overriding factor influencing the market is slow demand from China. Until recently it was mainly overstocking of okoume which affected purchases but now the overstocking has extended to a wider range of timbers.
For China, demand for species such as belli, okan and even sapele have declined and prices have eased.
The stabilisation of equity values on China's stock markets has improved consumer confidence but importers remain cautious and will need time to reassess domestic demand prospects which are largely dependent on a more positive outlook for the housing and construction industries.
At the moment buyers for China say there is no reason to place new orders when domestic sales have virtually halted.
Producers in Gabon hard hit by weak market for okoume
Reports suggest that currently West and Central African producers of okoume sawnwood are holding several thousand cubic metres of stock as many orders have been cancelled. This has affected producers in Gabon particularly hard as they have few alternative markets.
European demand in good shape say producers
In contrast to the depressing news from China, European markets are in better shape say producers with moderate demand in Germany, Netherlands, Belgium. Italy and UK despite it being the holiday period.
Buying for France is always slower in the vacation period but reports from French buyers are that timber continues to lose markets to plastics and aluminum products for joinery such as doors and windows.
African producers continue to hope for new market opportunities but are not well equipped for aggressive marketing. Market promotion has been largely ignored in the past as exporters could rely on steady demand in traditional markets.
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 |
300
|
280
|
-
|
Bibolo/Dibétou |
150
|
145
|
|
Iroko | 330 |
290
|
260
|
Okoume (60% CI, 40% CE, 20% CS) (China only) | 235 |
235 |
160 |
Moabi | 335 | 305 | 225 |
Movingui | 210 |
210
|
160
|
Niove |
160
|
160
|
-
|
Okan |
250
|
250 |
-
|
Padouk |
310
|
285 |
225
|
Sapele | 320 |
320 |
240 |
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 |
370
|
Merchantable | 225 |
|
Std/Btr GMS | 280 |
|
Sipo | FAS GMS |
610
|
FAS fixed sizes | 610 |
|
FAS scantlings | 640 |
|
Padouk | FAS GMS | 930 |
FAS scantlings | 980 |
|
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
|