Sarawak Log Prices FOB                             per Cu.m Meranti SQ up              US$180-185              small                US$140-145              super small       US$120-125 Keruing SQ up              US$170-175              small                US$140-145              super small       US$110-115 Kapur SQ up                 US$140-145 Selangan Batu SQ up     US$140-145 Francophone West African Log Prices Sapelli prices are well down, having lost around US$30 per cubic metre over the past month.  Demand for Ayous is reported as very good as is demand for Moabi. Movingui prices are reported as weakening in the Asian markets, but are still said to be firm in Europe, which is the reverse for Limba where Asian demand is good. FOB                             LM            B      BC/C                                          Euro per Cu.m Afromosia/Assamela     381            350            - Acajou/N'Gollon            206            191            - Ayous/Obeche              175            160            106 Azobe                           168            145            114 Bibolo/Dibtou                152            114            - Movingui                       206            190            175 Fromager/Ceiba            114            114            - Iroko                            351            320            241 Limba/Frake                 137            114            99 Moabi                           244            221            206 Padouk                         206            206            - Sapelli                           229ß         213ß         190ß Sipo/Utile                      274            259            - Tali                               144            129            91 Doussie                         457            335            274 Gabon Okoume Grade                                       per Cu.m CI                                            US$150 CE                                           US$122 CS                                           US$95 QS                                           US$176 Okoume for China 40% CI, 40% CE, 20% CS        US$200 (Free alongside) Myanmar Veneer Quality             FOB per Hoppus Ton                            July                  August 2nd Quality            No sale             Euro 4104                                                    2 tons 3rd Quality            Euro3667         Euro 3548                             4 tons               3 tons 4th Quality            Euro3314         Euro 3180                            39 tons              65 tons     Sawing Quality            per Hoppus Ton Grade 1 Av.            Euro 1938     Euro 1995                            212 tons      195 tons Grade 2 Av.            Euro1662         Euro 1645                            335 tons      230 tons Grade 3 Av.            Euro 769       Euro 755                            331 tons      610 tons Grade 4 Av.            Euro 1095     Euro 1110                            481 tons      635 tons Assorted Av.            Euro 784       730                            317 tons      49 tons Papua New Guinea In September 2004, wet weather in the major logging areas severely restricted log production. In August 2004, PNG exported 135,351 cubic metres of logs to China, India, Japan, Korea and Vietnam at an average price of US$58 per cubic metre. China was the major market, taking 52% of the logs, followed by Japan taking 20%, Vietnam 17%, India 7% and Korea taking 4%. The main grade of exported logs (67%) was saw/veneer grade (91,145 cubic metres). Of that log grade, the predominant species exported in August  were, in order, malas, calophyllum, taun, PNG Mersawa, dillenia, terminalia, erima, pencil cedar, red canarium, burckella, canarium, PNG walnut and kwila. Interestingly, 27% of PNG's log exports in August 2004 were of plantation grown timbers. Species exported were teak, in the price range US$165-215 per cubic metre FOB ; terminalia, in the price range US30-50 per cubic metre FOB and Eucalyptus deglupta (kamarere), in the price range US$31 to 52 per cubic metre FOB. However, analysts say that this business is not expected to continue as PNG has limited mature plantation resources. Saw/veneer grade    Monthly Average FOB per Cu.m Malas                           US$60 Ý Calophyllum                  US$75 ß Taun                             US$73 Ý Terminalia                     US$60 Ý Pencil Cedar                 US$75 Ý PNG Mersawa              US$82 ß Red Canarium               US$58 Erima                           US$59 Ý Dillenia                         US$57 Burckella                      US$59 Domestic Log Prices Brazil During September, prices on the domestic market remained stable despite a strengthening of the Real by around 3% against the US Dollar. The supply/demand imbalance for pine logs continues and is likely to remain and this is contributing to the increase in prices of pine wood products on the domestic market. Prices for tropical logs were stable during September as this is a dry month, allowing uninterrupted harvesting. Logs at mill yard            per Cu.m Mahogany Ist Grade      No Sales Ipe                               US$71 Ý Jatoba                           US$45 Ý Guaruba                        US$31 Ý Mescla(white virola)      US$38 Ý The consumer price index (Expanded National Index of Prices to the Consumer IPCA) moved up  0.69% in August, but still remains 24% below July's rate (0.91%), the highest percentage change this year. With August result, the IPCA to date would equate to an annual inflation rate of just over 5%, lower than the 7% in 2003. The Brazilian Central Bank raised the prime interest rate from 16% to 16.25% recently. The rate had not been changed since April 14 this year, when the Bank decided to lower the rate from 16.25% to 16%. The decision by the Bank to raise interest rates back to April levels is due to the inflation threat caused by the domestic industry recovery. Indonesia Domestic log prices      per Cu.m Plywood logs      Face Logs                    US$80-95 Core logs                      US$55-70 Sawlogs(Meranti)         US$90-100 Falkata logs                   US$90-95 Rubberwood                 US$80-90 Pine                              US$95-100 Mahoni                         US$500-515 Peninsula Malaysia Logs Domestic (SQ ex-log yard)  per Cu.m DR Meranti                  US$190-200 Balau                            US$165-175 Merbau                         US$215-220 Rubberwood                 US$75-85 Keruing                        US$175-185 Ghana                                     per Cu.m Wawa                          US$36-44 Odum                           US$77-175 Ceiba                            US$31-53 Chenchen                     US$33-88 Mahogany (Veneer Qual.)              US$49-176 Sapele                          US$55-154 Makore (Veneer Qual.)              US$55-154 International Sawnwood Francophone West Africa FOB                                         per Cu.m Okoume                                    Euro FAS GMS                                 266 Standard and Better                  251 FAS Fixed Sizes                        297 Sipo FAS Standard Sizes                   640 FAS Fixed Sizes                        670 Sapelli                           FAS                                         487 Dibtou                                      FAS Standard Sizes                   381 FAS Fixed Sizes                        412 Iroko FAS GMS                                 548 Scantlings                                  487 Strips                                        274 Khaya FAS GMS                                 398 Brazil Tropical sawnwood, exports were US$338.5 million in the January-August period. When compared to the same period of last year, tropical sawnwood exports in  2004 are, so far, 46% up  (US$ 232.2 million). In the first eight months of 2004, pine sawnwood exports reached US$195.8 million, 16% higher than the same period of 2003 (US$168.1 million). Reducing Red Tape For some time now the federal government has been lobbied to reduce the 'red tape' required to get investment in plantations approved. Requirements, such as project approval, prior inspections, logging permits and transportation authorizations have been slow to be issued and this has been seen in some quarters as inhibited timber production. By launching Rule 08/2004, the Ministry of Environment set new regulations for plantations and for harvesting of natural and plantation forests. According to the new rules, the production and harvest of exotic species (pine and eucalyptus, for instance) are exempted from the requirement to advise or inform IBAMA (Brazilian Institute for Environment and Natural Renewable Resources). For plantations of indigenous species, transport authorizations of forest products (ATPFs) are granted after field inspections to verify if the logged timber comes from plantation areas and not from conservation units or permanent preservation areas. The new rule has two main objectives: to stimulate investment in plantations and the increased production of commercial forests.  It further aims to strictly track native timber that is logged, transported and traded. This initiative focuses on stopping illegal logging and creating a competitive market for timber and other forest products. FOB Belem/Paranagua Ports Export Sawnwood             per Cu.m Mahogany KD FAS FOB UK market                      no trade Jatoba Green (dressed)     US$525 ß Cambara KD                   US$420 ß Asian Market(green)  Guaruba              US$240              Angelim pedra     US$270              Mandioqueira      US$190 Pine (AD)                        US$125 ß Malaysia Sawn Timber Export(FOB)                    per Cu.m White Meranti A & Up   US$325-330 Seraya Scantlings (75x125 KD)  US$655-665 Sepetir Boards                US$185-195 K.Sesendok 25,50mm      US$370-380 Ghana FOB                 Euro per Cu.m Afromosia                     855 Asanfina                       480 Ceiba                            180 Dahoma                        300 Edinam                         360 Khaya                          480 Makore                         449 Odum                           580 Sapele                          480 Wawa                          300 Peru As a consequence of supply problems prices for Mahogany's and Cabre uva are increasing in all the markets.  Prices for Mahogany sawnwood (25 and 50mm thickness) in the North American market have reached US$1,300.00 and US$ 1,380.00 per cubic metre. For Central America markets the price is at US$1,230.00 and US$1,250.00 per cubic metre. Cabre Uva (Santos mahogany) fetches a higher price than Mahogany at US$1380 (25mm) and US$1430 (50mm) per cubic metre in the Chinese market.  The Peruvian trade has said that it would not be a surprised if there is a further increase in international prices for Mahogany and Cabre Uva. For US Market                          per Cu.m Mahogany  1C&B, KD 16% Central American market            US$1220-1250Ý Mahogany  1C&B, KD 16% US market                                 US$1300-1380 Ý Spanish Cedar No.1 C&B, KD 16%,  Central Am. Market                   US$615-630 Walnut 1" Thickness,  6' - 11' length                             US$660-700 Spanish cedar # 1 C&B, KD 16% Mexican market                          US$630-650 Ý Pumaquiro 25-50mm AD Mexican market                          US$460-490 Virola  1" to 2" Length  6' - 8' KD                      US$270-290 Lagarto  2" Thickness, 6' - 8' length                               US$345-365 Ishpingo  2" Thickness 6' - 8' length               US$365-385 The last two months the US dollar has been weakening against the nuevos soles. In June the exchange rate was 1: 3.45  nuevos soles but and by the end of September the rate had fallen to 1:3.30 nuevos soles. This weakening of the US dollar affected exporter's earnings. If the US dollar continues to weaken then Peruvian timber exporters say they will be forced to increase prices in order to cover operational costs in nuevos soles. The impact of any price change would first be felt by Virola, hardwood and plywood importers. The producers say that priice structures for Mahogany and Spanish cedar would most likely be little affected as the margins can absorb the current level of change in domestic currency earnings. Domestic Sawnwood Prices Report from Brazil Sawnwood (Green ex-mill) Northern Mills               per Cu.m Mahogany                     No sales Ipe                               US$305 Ý Jatoba                           US$221 Ý Southern Mills Eucalyptus AD              US$107 Pine (KD) First Grade   US$139 Ý Report from Indonesia Sawn timber, ex-mill Domestic construction material Kampar                         per Cu.m AD 3x12-15x400cm       US$200-210 KD                               US$280-290 AD 3x20x400cm            US$305-315 KD                               US$320-330 Keruing AD 3x12-15cmx400       US$225-230 AD 2x20cmx400            US$220-225 AD 3x30cmx400            US$230-235 Malaysia Sawnwood                    per Cu.m Balau(25&50mm,100mm+)                                     US$235-245 Kempas50mm by  (75,100&125mm)          US$175-185 Rubberwood 25x75x660mm up           US$235-240 50-75mm Sq.                 US$245-250 >75mm sq.                    US$255-265 Ghana Sawnwood                                per Cu.m Wawa 25x300x4.2m                 US$73 Emeri            25x300x4.2m        US$70 Ceiba 25x300x4.2m                   US$53 Dahoma 50x150x4.2m               US$138 Redwood 50x75x4.2m               US$122 Ofram  25x225x4.2m                 US$136 Peru                                      per Cu.m Mahogany                     US$1512-1522 Virola                           US$186-200 Spanish Cedar               US$630-640 Catahua                        US$177-183 Tornillo                         US$357-365