Central Africa: Minor sawnwood price movements

For the first time this year minor sawnwood price movements have been reported in Central/West Africa, otherwise most markets are quiet and prices remain unchanged, ITTO reported.
Thankfully, business in Europe continues at levels normal for this time of year when the construction/building sectors are affected by winter weather. West and Central African producers anticipate a slow but upward trend in sales to markets in Europe throughout this year.

No interest in small diameter okoume logs

Buyers for the Chinese market are on the sidelines due to the holiday period but there have been reports of small purchases of selected species but no-one is interested in large volumes of okoume.
Sales of okoume logs are limited to high quality and larger diameter logs at low price. There is absolutely no interest on the part of buyers in small and lower quality okoume logs.
It is not clear when or even if there will be revival in China’s imports beyond the small volumes traded at present. There have been suggestions that the species mix for the Chinese market may be changing towards a different range of lower cost timbers.
Business in Middle East markets has, so far, not been affected by the declines in oil export prices which must be denting the reserves of oil exporters

Producers see growth potential in Mid-East markets

Purchases by buyers for the Middle East markets are of only moderate volumes as is usually the case. The sentiment amongst producers in Central and West Africa is that demand in the Middle East will remain stable with potential for growth as the year progresses, though prices in this market will be always under competitive pressure.

Falling timber exports affecting government revenues

Heavy seasonal rains are affecting production in the region especially in Gabon and Congo Brazzaville. Anecdotal evidence suggests both Gabon and Congo Brazzaville are feeling the effects on their economies of the lower level of timber exports which, in the past, generated substantial revenues from taxes and export levies.
Analysts point to a slowing in large infrastructure developments such as new roads and buildings as evidence of declining government revenues.

Log Export Prices

Sawnwood Export Prices

 
Source: ITTO
 
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