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.


 

 

1-15 June 2008

Top story

Plywood prices in Ghana show improvement in first quarter of 2008

According to the Timber Industry Development Board (TIDD) contract report, there has been a sharp improvement in prices of plywood from Ghana during the first quarter of 2008. Buyers of plywood in West African countries, especially Nigeria, have been paying between USD20/m³ and USD30/m³ more than the TIDD minimum Guiding Selling Prices (GSP). The price paid depends on the thickness of plywood being demanded. This development has helped push up prices of plywood and rotary veneer to US markets, which were slightly below the minimum GSP. Though prices of plywood and rotary veneer to the US are still low when compared to those in ECOWAS and European markets, they have improved by an average of USD15/m³ and USD25/m³ respectively above the minimum GSP. The only exception to this trend is celtis rotary veneer, which is still at the GSP of USD384/m³.


Also in this issue

  • Slowing demand creates buyers’ market
  • Ghana launches GIFEX 2008
  • Over USD2 million announced at ITTO meeting in Ghana
  • Malaysia wood industry exports up nearly 60%
  • New policy in Brazil to boost solidwood and furniture sectors
  • Solidwood companies in Mato Grosso continue to face difficulties
  • Plantation timber could reduce Mexico’s dependence on imports
  • Guyana log exports continue to decline as prices rise
  • Chinese furniture enterprises boost export value
  • China wood flooring outputs rise 9.4%
  • Sapele prices under pressure in EU
  • EU plywood market weakens
  • UK sets new standard for construction products

Data snapshot

Tropical Plywood FOB Price Trends 2007-2008

snapshot20080601.gif

Prices for most tropical plywood products were holding steady, although trends in many European markets indicate that demand will slow during the summer months. Buying by the large UK merchant groups has fallen in response to a significant decline in house-starts and residential sales. Elsewhere in Europe, the German plywood market is now extremely slow, although there are reports that the French and Netherlands markets are holding up reasonably well. Although Chinese plywood products have taken a larger share of the European market in recent times, the competitive edge of Chinese exporters has been blunted this year by the removal of government subsidies and as fuel and labor costs have risen dramatically in China. Malaysian exporters are the main beneficiaries of China’s reduced competitiveness, particularly owing to Malaysia’s lower GSP rate.

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