world news - 11.09.2007
Central/West Africa: Log prices hold steady through August
Log prices held steady through August, marking a rebound
from weaker price trends in July. Only two or three
downward adjustments in price were recorded, due to
changing supply and demand. Price stability was assisted
by the slight improvement in demand from China,
although demand was still far from reaching previous
levels. Azobe was one of the main species suffering a drop
in price because of oversupply, reduced interest from the
Netherlands and strong competition from alternative
Brazilian species. Prices also dropped for Padouk, since
fewer ships were available for loading to India.
Gabon’s new log quota system is fully implemented,
although there are still ongoing discussions with
government on allowable volumes. It is reported that some
companies were allocated volumes of around 10% of their
previous export volumes. Although negotiations on the
allowed quotas will continue for some time, there is a
connection between the allowed quotas and companies’
reforestation records. This connection appears to have
assisted the longer established companies in the allocation
of total export volumes.
For sawn lumber, Sipo and Sapele prices remained firm.
Prices for other species are strong and the price increases
achieved through June and early July have held. Although
markets are currently quite dull, prices have stayed
buoyant and thus there is still confidence in market
prospects in the fourth quarter.
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