West African log prices have shown a remarkably flat line over the past few months. This in spite of only moderate to low sales over the European winter and equally low buyer interest in forward commitments during the first quarter of 2002.

The market remains the same, partly because of producer countries using a variety of controls to hold down export levels and partly through producer companies being very firm on prices and refusing to be tempted by low offers from buyers.

Cameroon in particular has been tough on controls of its forest industries, rescinding concession agreements where loggers have not kept to the rules, banning log exports of major species and squeezing better value from the forest through auctioning concession areas instead of just awarding them.

The Cameroon government is advised on forest matters by Societé General de Surveillance, SGS. The success of these policies has been to a great extent supported by a strong local demand for wood and by the efforts of new sawmills and wood processors to increase exports of processed lumber.

Reports are that currently there are virtually no exports of these logs because high demand from the sawmills takes up all the available volumes, much of which is further processed into semi-finished products.

The export log park in Douala port is said to contain few logs from Cameroon producers, almost all available logs being sourced from North Congo and Central African Republic. With high transport costs from these countries through to Douala, only the top quality logs are worth exporting, and prices obtained generally reflect this.

Gabon log exports

Gabon held down log export volumes in order to maintain prices levels and, although log supplies are adequate, prices are being kept firm. The current major buyer of West African logs is China and, while prices are unchanged over the past few months, buyers are tough on quality and do not hesitate to claim on the slightest variation.

The ongoing civil unrest in Liberia may now be impacting on log supplies, especially of niangon, a favourite of French buyers. There is some continuing unrest also in the Central African Republic which has asked for UN assistance in keeping the peace; however, this does not appear to have affected log production for export.

Some are developing niche market products such as prefabricated wooden bridge

components and parts for outdoor wooden furniture for the Netherlands and it is certain this type of product will have to play an increasing role in export development in the West African region.

Price comparison

Looking at current prices in comparison with end-December 2001/January 2002, ayous, abura and bosse have not moved but have become very firm at the upper end of their price range. Azobe squares 4×4 and 6×6 are e15.25/m3 higher, with other sizes firm at previous levels. Doussie FAS GMS and scantlings have gained around e30.5/m3 and strips have regained last year’s drop, also around e30.5/m3.

Sapele prices are stable though demand has been very patchy, and sipo also has seen no price change over the first quarter.

Germany and the Nether-lands have been active buyers of bilinga in FAS fixed sizes, and the price gain from last year has continued on through to a rise of up to e30 so far this year.

Okoume lumber prices are unchanged and now stable, which is probably a relief to sawmillers who had seen a very weak trend in the first month or two. At about e76/m3 below khaya and half the price of sipo, okoume lumber ought to seem a bargain buy for certain lighter weight joinery and furniture components.

In Ghana, the annual allowable cut of 1 million m3 is only around 25% of the capacity of the processing industry and both government and industry have long recognised the vital need to produce higher value from less and less volumes of raw log input.

Bamboo and rattan

The UN Industrial Development Organisation (UNIDO) has been instrumental in helping to raise awareness of the vast potential for growing bamboo and processing into industrial products such as floorings and laminated boards and the Ghana Forestry Organisations appear to have taken this on board with much enthusiasm.

One enterprising producer, the Kumasi Logging and Lumber Company, has already produced laminated bamboo panels and mouldings using existing conventional timber processing machinery.