Central/West African timber trade continues, stable but slow
18/09/2008 - 14:18
Trade with West Africa continues to be slow, with no price changes of late, so there is some stability in the market. The rains in Cameroon, Central African Republic and Northern Congo have restricted logging and volumes available for sawmills are being curtailed. The resulting lower availability of sapele sawn lumber may go some way towards inducing European buyers to arrange shipment of their previous, existing purchases that have been held at port, especially Douala. When this older stock is moved into consumption, exporters hope this will reduce the price pressures on sapele and sipo. Rains are also expected in some areas of Gabon and this may well reduce further activity in logging and processing, already much restricted as companies have closed logging areas and scaled down output from sawmills.
There are some expectations that trade with Europe will pick up during the autumn months, but rather poor and rainy weather in Northern Europe coupled with high stocks of the most favored tropical hardwood species in France and Germany may well restrict any surge in demand to gap-filling in relatively small volume.
Sawn lumber prices reported over the previous fortnight remain unchanged. This may be largely because there is very little new business being concluded and producers feel it is unlikely that lower priced offers will stimulate sales in such dull market conditions. Many are confident that the reductions in production and tighter supply situation are sufficient to keep prices stable. Much will depend on any developments in the economies in European countries that could stimulate the building construction industries. Meanwhile, China and India are active buyers, providing a stabilizing measure of support for West and Central African producers.
