| Central/West Africa: Buyers hesitate amid global economic downturn |
| 07/11/2008 - 10:41 |
The market situation in West Africa remained sluggish
during October 2008. China and India were buying at very
cautious levels as buyers were gauging how quickly the
economic downturn in Europe might affect global timber
manufacturing. Banking problems in the US and UK have
hit real estate sales and building developments probably
much harder in these countries than elsewhere as
borrowing and lending has become more difficult in these
markets.
Prices for logs and lumber were unchanged from earlier in
the month, although it is probable some sales have been
made at a discount when sellers needed to clear stock or
were trying to maintain cash flow.
Production in West Africa was low due to workforce
reduction in the sector and closure of facilities. Heavy
rains in most countries were also curtailing logging and
transport of logs to the mills and ports. Business with
Europe was very slow. Importers were keen to reduce
stocks, as their own sales were lower. Historically, the
European winter has brought lower consumption even
without the current global economic problems. Forecasts
for the economic situation in the UK and Continental
Europe show low or no growth for the next 12 to 24
months. It does not seem possible that there will be any
prompt upturn in the consumption of timber and timber
products in the short or medium-term.
Central/West Africa
| West Africa logs, FOB |
€ per m³ |
| Asian market |
LM
|
B
|
BC/C
|
| Acajou/ Khaya/N'Gollon |
221
|
191
|
137
|
| Ayous/Obéché/Wawa |
206
|
206
|
168
|
| Azobe & Ekki |
168
|
168
|
122
|
| Belli |
168
|
168
|
-
|
| Bibolo/Dibétou |
168
|
168
|
114
|
| Bubinga |
533
|
457
|
381
|
| Iroko |
289
|
274
|
259
|
| Okoume (60% CI, 40% CE, 20% CS) |
132
|
-
|
-
|
| Moabi |
259
|
259
|
206
|
| Movingui |
191
|
191
|
137
|
| Niove |
129
|
129
|
-
|
| Okan |
162
|
162
|
135
|
| Padouk |
259
|
259
|
229
|
| Sapele |
251
|
251
|
191
|
| Sipo/Utile |
305
|
305
|
228
|
| Tali |
152
|
152
|
114
|
| West Africa sawnwood, FOB |
€ per m³
|
| Ayous |
FAS GMS |
335
|
| Fixed sizes |
396
|
| Okoumé |
FAS GMS |
300
|
| Sel. & Bet. GMS Italy |
250
|
| Sel. & Bet. fixed sizes |
-
|
| Sipo |
FAS GMS |
585
|
| FAS fixed sizes |
-
|
| FAS scantlings |
585
|
| Padouk |
FAS GMS |
585
|
| FAS scantlings |
585
|
| Strips |
425
|
| Sapele |
FAS Spanish sizes |
520
|
| FAS scantlings |
520
|
| Iroko |
FAS GMS |
458
|
| Scantlings |
519
|
| Strips |
304
|
| Khaya |
FAS GMS |
396
|
| FAS fixed |
427
|
| Maobi |
FAS GMS |
580
|
| Scantlings |
580
|
| Movingui |
FAS GMS |
420
|
|
| (ITTO's Tropical Timber Market Report) |
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