Malaysia: No new logging

The government of the most industrialised State in Peninsular Malaysia, Selangor, has stopped issuing licenses for logging on all state land. The State government met in July this year and issued a ban on logging on all State land with immediate effect. However, the ban on logging in mangrove forests will only take effect at the end of the year.

The Malaysian Federal Constitution mandates that land and natural resources are matters under the jurisdiction of the State governments. Logging licenses currently held by concessionaires will not be renewed. The ban will not affect clearing on private land such as those owned by forest plantation owners. A quota of 1,970 ha. of forests for logging under the current year was set aside for the State of Selangor by the National Forestry Council. The quota is the maximum annual area that a State could allocate for timber harvesting. According to the Selangor state forestry department, less than a quarter of the quota has been utilised to date by concessionaires.

Sarawak plantations
Sarawak is planning to plant one million ha. of forest by the year 2020 to reduce dependency on logging in its natural tropical forests. Sarawak forest department notes that the State had planted 350,000ha. of forest with fast growing species such as Acacia and Rubber in areas that had been logged and were denuded. To-date, the State has only harvested 100,000ha. of its plantation forest. Acacia was identified a faster growing specie as it could be harvested within 7 years for the paper and pulp industry with a yield of 180 cu.m per ha., and within 10 years for sawnwood and plywood with a yield of 300 cu.m per ha.

Rubberwood fellings delayed
The demand for medical rubber gloves manufactured from latex from rubber trees continue to push the prices of rubberwood upwards as older rubber plantations that were due for felling are being kept for latex production even as yields decline. With plantation owners opting to tap the trees for rubber latex instead of harvesting the wood, traders in rubberwood believe that this upward trend in rubberwood prices will continue until early 2010. Stocks of rubberwood that have been languishing in timber warehouses around the country are now being absorbed by the furniture industry.

Furniture business recovery
Malaysian furniture manufacturers are now turning their focus to 2010 for any hope of business recovery. With the market for electronics beginning to pick up there are indications that the Japanese and US economies may be on the mend, albeit slowly. The Indian market for Malaysian timbers remains soft as construction work seems to be slowing down in major cities across India. The hope is that now the monsoon is over work will resume. Going into the autumn months in the northern hemisphere and with the winter months just around the corner, prices of plywood, sawnwood and other panel-products for construction purposes are expected to stay depressed or stagnant.

Malaysia Log Prices
Malaysia Log Prices

Sarawak log, FOB	US$ per m³
Meranti SQ up	226-250
Small	210-241
Super small	200-224
Keruing SQ up	216-228
Small	190-220
Super small	167-197
Kapur SQ up	206-231
Selangan Batu SQ up	179-216

Pen. Malaysia logs, domestic (SQ)	US$ per m³
DR Meranti	231-250
Balau	297-326
Merbau	323-355
Rubberwood	50-84 ⇑
Keruing	214-230
Peninsular Malaysian meranti logs are top grade and are used for scantlings for the EU. Their prices are higher than Sarawaks.

Malaysia Sawnwood Prices

Malaysia Sawnwood, FOB		US$ per m³
White Meranti A & up		280-311
Seraya Scantlings (75x125 KD)		435-448
Sepetir Boards		249-271 ⇑
Sesendok 25,50mm		346-364
Kembang Semangkok		294-317

Malaysian Sawnwood, domestic		US$ per m³
Balau (25&50mm,100mm+)		325-345
Merbau		455-507
Kempas 50mmx (75,100 & 125mm)		260-300
Rubberwood	25x75x660mm up	199-249
	50-75mm Sq.	240-272
	>75mm Sq.	262-291

Malaysia Plywood Prices

Malaysia ply MR BB/CC, FOB	US$ per m³
2.7mm	406-468
3mm	386-416
9mm & up	332-404
Meranti ply BB/CC, domestic	US$ per m³
3mm	381-422
12-18mm	315-344

Other Malaysia Panel Prices

Malaysia, Other Panels, FOB	US$ per m³
Particleboard Export 12mm & up	226-249
Domestic 12mm & up	211-228
MDF Export 15-19mm	281-313
Domestic 12-18mm	270-288

Malaysia Added Value Product Prices

Malaysia, Mouldings, FOB	US$ per m³
Selagan Batu Decking	531-541
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A	546-559
Grade B	499-508

Malaysia Furniture and Parts Prices

Malaysia, Rubberwood, FOB		US$ per piece
Semi-finished dining table solid laminated top 2.5'x4', extension leaf		60-76 ⇑
As above, Oak Veneer		67-81 ⇑
Windsor Chair		59-61 ⇑
Colonial Chair		57-62 ⇑
Queen Anne Chair (soft seat)	without arm	57-65 ⇑
	with arm	57-66 ⇑
Chair Seat 27x430x500mm		45-50
Rubberwood Tabletop		US$ per m³
22x760x1220mm sanded & edge profiled
Top Grade		557-590 ⇑
Standard		541-560 ⇑

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Malaysia: No new logging

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