world news - 05.03.2003
Dutch Tropical Timber Market in February Manufacturers have little work and are using much less timber at the moment...
Meranti and Sapupira are quite attractively priced at the moment and that is
very noticeable to the traders who deal with W. African Sapelli and Mahogany.
With the weak market it is not surprising that there is a continuous erosion of
prices. There is still a very big downward pressure on prices for KD DRM
3x5" PHND. This might have to do with the fact that, as a result of the
threat of war in Iraq the exchange rate of the guilder to the US dollar may drop
further again and then the value of landed (and paid for) stock has to be
depreciated even further to equate to prices for new arrivals at an even much
lower US$-rate.
Traders are anxious to push some sales and once a joinery mills tables an
inquiry, in this hand to mouth business, all the traders and retailers jump on
it like hungry wolves, undercutting each other to rock bottom price levels.
Many traders feel that it is not at all necessary to dump Meranti at such
terribly low prices yet it is done and importers don't seem to be able to
straighten their backs to fight this negative price-spiral. This is especially
true as the situation in Malaysia does not currently suggest the need to lower
prices in the Dutch market. Because of increasing oil costs ocean freight for
both conventional and container shipments for timber from Port Kelang to
Rotterdam will surely go up. Also, the consensus on the current situation in
Malaysia as far as supply is concerned is that traders in Holland feel that the
exporters do not have much volume to offer at the moment.
The unsold position for typical Dutch sizes in Bukit and Seraya in e.g.
3x5" is reportedly low. There is not much timber in or around the jetties
or in the pipeline for kilning. Most problematic could be that sawmills do not
seem to have many logs in stock at the moment to serve possible needs of the
Dutch market.
Some sources even speak about an acute shortage, caused by heavy rainfall in
February, the slowdown during Chinese New Year and the fact that fewer logging
concessions are being offered. All this has led to the price for Meranti for
major Dutch items being very firm: one or two items such as Bukit 3x5" has
even increased and rumour has it that counter offers were not accepted.
One or two importers tried at USD 910 per ton CNF Rotterdam, but that was
declined by the respective exporter. It is good to hear off exporters fighting
to keep prices at equitable levels
See also:
- — Malaysian furniture industry optimistic
- — China's Private Forestry Enterprises Booming. Statistics show that the average annual growth of China's forest products industry has topped 26% over 5 years....
- — Canadian sawmill figures 2002. Canadian sawmills shipped 72.5 million cubic metres of lumber in 2002, up 2.8% from 2001...
- — Trade Fair for Used Machinery and Equipment in Nuremberg
- — Poland: 3rd Timber Industry & Forest Resources Management Fair