Market Information Service

Towards greater transparency in the tropical timber markets

The ITTO Tropical Timber Market (TTM) Report, an output of the ITTO Market Information Service (MIS), is published in English every two weeks with the aim of improving transparency in the international tropical timber market. The TTM provides market trends and trade news from around the world, as well as indicative prices for over 400 tropical timber and added-value products.



16-31 January 2013


Top story

EUTR reinforcing trend for small companies in EU to stop direct imports of tropical hardwoods

The EUTR is expected to reinforce an existing trend in the European trade for smaller companies to stop direct imports of tropical hardwoods and to rely instead on purchases from larger European importing companies.

These large importers are taking on the specialist role of satisfying the due diligence requirements of the EUTR, something the smaller companies find difficult and costly to undertake.

Also in this issue

  • Jakarta businesses hit by deadly floods
  • What is causing weak demand for teak in EU? 
  • Indian plywood manufacturers seek protection from low cost imports
  • “Orchestra Brazil” diversifies furniture export markets
  • Guyana revises export tax schedules
  • EUTR provides impetus to marketing secondary species
  • California imposes new tax on wood products

Data snapshot

Post-election Yen: US$ Exchnge Rate Movement

Since mid-November 2012, the yen has weakened by about 12 per cent against the US dollar.

A weaker yen helps Japan's exporters by making their products cheaper overseas and this has made manufacturers more optimistic. Most of Japan’s electronic and auto manufacturers have factored in an exchange rate of around 78 -80 yen to the dollar in their financial forecasts.

It is said that for every 1 yen decline in the yen exchange rate the annual operating profits of major exporters rise by 2.5 billion yen.

Concerted efforts by the Japanese government and Bank of Japan are forcing down the currency and the Japanese authorities have indicated that an exchange rate of yen 100 to the dollar would be an acceptable level. However, such talk is prompting fears of a currency war in the region.

A significantly weaker yen will drive up prices of imports and the impact of higher fuel, crude oil and natural gas costs will have to be passed onto consumers.

In the timber sector the impact of higher energy costs in production and higher costs for imports is beginning to be seen especially in prices for plywood, an essential in the construction sector.



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