As businesses in importing countries adapt to working with the coronavirus risk trade has started to revive and some FOB price movements have been reported.
Producers report a growing interest in ovangkol for the Chinese market suggesting this could be an alternative to kevazingo/bubinga. The Chinese demand for okan for flooring production is said to be stable as is demand for belli.
Over the past few months demand for okoume has waned but, fortunately, the market in the Philippines for okoume is firm and stable. Analysts write “If not for this market, okoume production in Congo and Gabon would slow down very fast”. The steady demand for okoume, andoung, gheombi and iroko in Middle East markets has been encouraging and as there are reports that stocks held in the Middle East are declining more orders are anticipated.
In contrast to Asian and Middle East demand some producers have seen easing FOB price from French importers for species such as douka and moabi easing. Similarly, importers in Belgium seem to have cooled to padouk and doussie while in Germany the market for sipo and sapelli is weak.
The only timber doing well in Europe at present is azobe but as mills switch from sawing okoume to azobe there is a risk of over-supply and a downward pressure on prices.
Cameroon under the spot light
Reports from Cameroon say more Chinese mills are closing, apparently in response to a crackdown by the authorities on mills that ignore regulations from the forest authorities. It is rumoured that as many as 50 operators in Cameroon have ceased operation.
In related news, the domestic press in Cameroon has reported on allegations from two international NGOs that Vietnamese operators in the country are suspected of smuggling timber out of the country between 2014-17.
This, it is reported, is based on discrepancies in trade data whereby the value of exports from Cameroon does not match the value of imports into Vietnam.
Exporters facing delays in Gabon
Exporters in Gabon say there has been no improvement in either the speed at which export documents are processed or in shipping. There have been suggestions that the slowdown in work and in implementing instructions from the Minister is related to the non-payment of forestry staff bonuses.
It has been reported that the first parcels of barcoded kevazingo sawnwood has been trucked from one of the major millers to Gabon Wood Industries in the Special Economic Zone (SEZ) for further processing.
The decision to require container stuffing be undertaken by SNBG/GSEZ and by the Operator of the SEZ NKOK has resulted in delays in shipments and many complaints have been lodged. It has been reported that the Minister invited tender bids for a second stuffing facility in the Owendo Port. Apparently five companies tendered, three are Chinese along with Bollore and Sotrasgab.
In other news from Gabon, it has been reported that the police in Moyen Ogooué Province are questioning several forestry officials in relation to the ‘disappearance’ of some 4,000 cubic metres of seized illegally harvested logs.
Log Export Prices
| West Africa logs, FOB | € per m³ | ||
| Asian market |
LM
|
B
|
BC/C
|
| Acajou/ Khaya/N’Gollon |
265
|
265
|
175 |
| Ayous/Obéché/Wawa |
250
|
250
|
225
|
| Azobe & Ekki |
275
|
275
|
175
|
| Belli |
280
|
280
|
–
|
| Bibolo/Dibétou |
215
|
215
|
|
| Bilinga |
275
|
275
|
– |
| Iroko | 300 |
280
|
225
|
| Okoume (60% CI, 40% CE, 20% CS) (China only) | 220 | 220 | 200 |
| Moabi | 350 | 350 | 275 |
| Movingui | 180 |
180
|
–
|
| Niove |
160
|
160
|
–
|
| Okan |
200
|
200 |
–
|
| Padouk |
250
|
230 |
200
|
| Sapele | 260 | 260 | 200 |
| Sipo/Utile |
260
|
260 |
230
|
| Tali | 300 | 300 |
–
|
Sawnwood Export Prices
| West Africa sawnwood, FOB |
€ per m³
|
|
| Ayous | FAS GMS | 440 |
| Bilinga | FAS GMS | 540 |
| Okoumé | FAS GMS |
460
|
| Merchantable | 310 | |
| Std/Btr GMS | 320 | |
| Sipo | FAS GMS |
420↓
|
| FAS fixed sizes | – | |
| FAS scantlings | 520 | |
| Padouk | FAS GMS | 640 |
| FAS scantlings | 675 | |
| Strips | 320 | |
| Sapele | FAS Spanish sizes | 420↓ |
| FAS scantlings | 450↓ | |
| Iroko | FAS GMS | 575↓ |
| Scantlings | 620↓ | |
| Strips |
350
|
|
| Khaya | FAS GMS |
450↓
|
| FAS fixed |
500↓
|
|
| Maobi | FAS GMS |
620
|
| Scantlings |
640
|
|
| Movingui | FAS GMS |
420
|
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