Lower demand in Europe over the summer and autumn months coupled with slower growth than hoped in demand for China contributed to the slowdown in trade for African timber exporters.

For the UK, the fall in the value of the pound is a factor that would cause buyers to wait in the expectation of a rebound before committing to new purchases forLower demand in Europe over the summer and autumn months coupled with slower growth than hoped in demand for China contributed to the slowdown in trade for African timber exporters.

For the UK, the fall in the value of the pound is a factor that would cause buyers to wait in the expectation of a rebound before committing to new purchases for winter stocks. Although export volumes were disappointing, producers were able to hold almost all prices without change while buyers were not able to commit for purchases large enough to gain price concessions.

There were losers, sapele prices fell away once again and show no signs of recovery in the short term, sapele lumber prices are around a further €10/m3 down and logs down again by €20/m3.

Italy had sufficient stock of ayous and buying slowed with resultant weakening of lumber prices that has lasted through the summer months and logs were down again in October by €20/m3.

Sipo prices were weaker and demand remains low, whilst Belgium slowed purchases of padouk, triggering price drops of over €100/m3 at the same time as buyers for India were out of the padouk market. Here there is a recovery to report with padouk GMS lumber up by some €50/m3.

Because Myanmar has almost totally halted felling in order to try to rationalize the forest sector and find an allowable harvest volume that will go some way towards forest conservation, India has had to seek alternatives for Myanmar teak and other hardwoods and is now possibly the most active prospect for African log exporters.

There is competition from traditional Malaysian log exporters although because of Sarawak’s lower annual log harvest and much tighter availability for export, India is now also importing logs from Papua New Guinea.

Gabon experienced civil unrest during the recent presidential elections and this did close ports for up to two weeks as well as interrupting production and road transport for several days. Many companies advised their staff to stay home for some days.

All is back to normal and producers’ representatives are busy reading a proposed new Forest Code composed by an NGO which is now out for consultation. The industry already builds schools, clinics and other infrastructure and the new proposals are to strengthen co-operation and involvement between local communities and forest concessionaires.

There is also a current proposal on a system that will lead to export of slab cut sawn lumber of certain special value species mostly destined for China. This was signed off by the previous minister but the government has changed and the decision has been put back for ratification by the new minister.

There are other initiatives also waiting for decisions including the proposal for compulsory kiln drying of all export lumber and the set up of a timber marketing board. These two ideas are contested by the timber industry.

Following on from the report of companies from China considering investments in production of peeled veneers in Gabon, a group of timber processors from India were recently in Gabon to assess prospective investments for peeler facilities in the Special Economic Zone. Some local timber companies are already working in the zone with production of woodwork including doors and windows.

They complain that exporting out of the zone to adjacent CEMAC countries involves various taxes that make their products uncompetitive. One company is investigating possible markets in Europe for high quality hardwood doors, but prices are not yet sufficiently competitive. Another large company has purchased a redundant port facility to use for container exports of timber, timber products and other materials.

There are always rumours that the Gabon government’s financial constraints may lead to a resumption of log exports, but this seems highly unlikely whilst there are ongoing enquiries from potential incoming investments.

The tragic train crash in Cameroon seriously affected connections between North and South of the country causing problems for transport of timber to mills and to the ports for export.

Cameroon has managed to gain a foothold in the US for sawn lumber exports, mainly khaya mahogany but volumes recently have fallen possibly through lack of a concerted promotional effort by African exporters.

Progress in sales to West and Central Africa’s major timber importer, China, has continued to improve in volume if not in price. Growth in business has been a little slower than expected and imports of okume logs in particular are still nowhere near the volumes of previous years. Okan is out of favour but demand for tali and belli, species not well known in UK are good and prices have been moving up through the year.

Construction activity in China is firm and some timber importers expect the government will add further stimulation to this sector in 2017 and are optimistic for future growth in business.

For other markets there is little change in the only moderate levels of demand. Perhaps more emphasis is on a perceived trend for buyers to go for higher quality lumber of the more exotic species and pre-finished board products.

This is certainly noted in the strong and active markets in Middle East countries where the bulk of contracts currently are for luxury high-rise apartments and hotels.

Middle East buyers import from almost every region especially for the basic lowest qualities for shuttering and general use where there are very competitive prices for Malaysian LRM and African mixed red gheombi species.

As areas of Iraq are liberated from Isis and returned to government control there will be a surge in demand for timber and boards to reconstruct devastated towns and villages.

Another highly competitive market is South Africa where meranti and okume compete for business. Here, current construction levels are good but contractors are expressing doubts that this will continue, putting prices for new timber purchases under strong downwards pressure and with weaker priced meranti taking the lead over African species.

Producers are not forecasting anything more than a steady market volume for the 4th quarter and first month of 2017, with prices continuing stable. Some are optimistic for China to resume a stronger growth pattern after the 2017 Chinese New Year which is at the early date of January 28.

West and Central African producers still have spare sawmilling capacity and log supply is capable of higher output in Gabon and Republic of Congo, but a little more difficult for Cameroon due to longer haulage from forest to mill but all are well able to deal with higher demand.

There remain the questions over future European market demand where fashion is still focused on light coloured timbers for most new build projects. African species have been losing market share over the past years and this steady decline may well continue until architects and interior designers begin to look again for the warmer colours of tropical timbers.

There is also the forthcoming UK exit from the EU which may affect the present attraction for UK buyers of second-hand top up imports from continental timber import companies, all this and the added uncertainty over currency fluctuations as both the UK pound and euro are weak.

What’s positive? Certainly the accession to FLEGT status for a range of Indonesian timbers and wood products and hopes this will stimulate other countries to hurry forward their progress to FLEGT status.

winter stocks. Although export volumes were disappointing, producers were able to hold almost all prices without change while buyers were not able to commit for purchases large enough to gain price concessions.

There were losers, sapele prices fell away once again and show no signs of recovery in the short term, sapele lumber prices are around a further €10/m3 down and logs down again by €20/m3.

Italy had sufficient stock of ayous and buying slowed with resultant weakening of lumber prices that has lasted through the summer months and logs were down again in October by €20/m3.

Sipo prices were weaker and demand remains low, whilst Belgium slowed purchases of padouk, triggering price drops of over €100/m3 at the same time as buyers for India were out of the padouk market. Here there is a recovery to report with padouk GMS lumber up by some €50/m3.

Because Myanmar has almost totally halted felling in order to try to rationalize the forest sector and find an allowable harvest volume that will go some way towards forest conservation, India has had to seek alternatives for Myanmar teak and other hardwoods and is now possibly the most active prospect for African log exporters.

There is competition from traditional Malaysian log exporters although because of Sarawak’s lower annual log harvest and much tighter availability for export, India is now also importing logs from Papua New Guinea.

Gabon experienced civil unrest during the recent presidential elections and this did close ports for up to two weeks as well as interrupting production and road transport for several days. Many companies advised their staff to stay home for some days.

All is back to normal and producers’ representatives are busy reading a proposed new Forest Code composed by an NGO which is now out for consultation. The industry already builds schools, clinics and other infrastructure and the new proposals are to strengthen co-operation and involvement between local communities and forest concessionaires.

There is also a current proposal on a system that will lead to export of slab cut sawn lumber of certain special value species mostly destined for China. This was signed off by the previous minister but the government has changed and the decision has been put back for ratification by the new minister.

There are other initiatives also waiting for decisions including the proposal for compulsory kiln drying of all export lumber and the set up of a timber marketing board. These two ideas are contested by the timber industry.

Following on from the report of companies from China considering investments in production of peeled veneers in Gabon, a group of timber processors from India were recently in Gabon to assess prospective investments for peeler facilities in the Special Economic Zone. Some local timber companies are already working in the zone with production of woodwork including doors and windows.

They complain that exporting out of the zone to adjacent CEMAC countries involves various taxes that make their products uncompetitive. One company is investigating possible markets in Europe for high quality hardwood doors, but prices are not yet sufficiently competitive. Another large company has purchased a redundant port facility to use for container exports of timber, timber products and other materials.

There are always rumours that the Gabon government’s financial constraints may lead to a resumption of log exports, but this seems highly unlikely whilst there are ongoing enquiries from potential incoming investments.

The tragic train crash in Cameroon seriously affected connections between North and South of the country causing problems for transport of timber to mills and to the ports for export.

Cameroon has managed to gain a foothold in the US for sawn lumber exports, mainly khaya mahogany but volumes recently have fallen possibly through lack of a concerted promotional effort by African exporters.

Progress in sales to West and Central Africa’s major timber importer, China, has continued to improve in volume if not in price. Growth in business has been a little slower than expected and imports of okume logs in particular are still nowhere near the volumes of previous years. Okan is out of favour but demand for tali and belli, species not well known in UK are good and prices have been moving up through the year.

Construction activity in China is firm and some timber importers expect the government will add further stimulation to this sector in 2017 and are optimistic for future growth in business.

For other markets there is little change in the only moderate levels of demand. Perhaps more emphasis is on a perceived trend for buyers to go for higher quality lumber of the more exotic species and pre-finished board products.

This is certainly noted in the strong and active markets in Middle East countries where the bulk of contracts currently are for luxury high-rise apartments and hotels.

Middle East buyers import from almost every region especially for the basic lowest qualities for shuttering and general use where there are very competitive prices for Malaysian LRM and African mixed red gheombi species.

As areas of Iraq are liberated from Isis and returned to government control there will be a surge in demand for timber and boards to reconstruct devastated towns and villages.

Another highly competitive market is South Africa where meranti and okume compete for business. Here, current construction levels are good but contractors are expressing doubts that this will continue, putting prices for new timber purchases under strong downwards pressure and with weaker priced meranti taking the lead over African species.

Producers are not forecasting anything more than a steady market volume for the 4th quarter and first month of 2017, with prices continuing stable. Some are optimistic for China to resume a stronger growth pattern after the 2017 Chinese New Year which is at the early date of January 28.

West and Central African producers still have spare sawmilling capacity and log supply is capable of higher output in Gabon and Republic of Congo, but a little more difficult for Cameroon due to longer haulage from forest to mill but all are well able to deal with higher demand.

There remain the questions over future European market demand where fashion is still focused on light coloured timbers for most new build projects. African species have been losing market share over the past years and this steady decline may well continue until architects and interior designers begin to look again for the warmer colours of tropical timbers.

There is also the forthcoming UK exit from the EU which may affect the present attraction for UK buyers of second-hand top up imports from continental timber import companies, all this and the added uncertainty over currency fluctuations as both the UK pound and euro are weak.

What’s positive? Certainly the accession to FLEGT status for a range of Indonesian timbers and wood products and hopes this will stimulate other countries to hurry forward their progress to FLEGT status.