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ITTO Tropical Timber Market Report Tropical Timber Market Report Volume 24 Number 15, 1st – 15th August 2020 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. Its contents do not necessarily reflect the views or policies of ITTO. News may be reprinted provided that the ITTO TTM Report is credited. A copy of the publication should be sent to [email protected]. Contents Headlines Page Central/West Africa 2 Long awaited Congo Forest Code 2 Ghana 3 Lockdown impact on businesses in Ghana 3 Malaysia 4 Malaysia’s furniture exports did well in early Indonesia 5 part of the year 4 Myanmar 6 India 7 Assurances of transparency from Myanmar 6 Vietnam 9 Vietnam’s exports beat expectations 9 Brazil 10 Imported plywood market in Japan ‐ Dealers Peru 11 trying to dispose of inventory 17 Japan 13 First indications of post‐lockdown rebound China 18 in EU wooden furniture imports 21 Europe 20 US residential furniture orders recover 25 North America 24 Currencies and Abbreviations 26 Ocean Freight Index 26 Price Indices 27 Top story Import substitution and self‐sufficiency the new buzz words Governments in several countries in West Africa (and India, page 8) are looking to develop domestic industries so as to be less reliant on imports and to achieve a better trade balance. The Ministry of Finance in Cameroon has been charged with preparing proposals to be included in the 2021 budget aimed at reducing the country’s reliance on imports and encouraging domestic manufacturing. See page 2 Central and West Africa The joint team will discuss the exchange of information and implementation of promotional campaigns as well as Long awaited Forest Code ways to develop the 15 ha. space Kribi Port has allocated The government in the Republic of Congo has released to the Central African Republic. details of its long awaited forest code covering over 220,000 square km. of its forests which are part of the In 2019, the volume of goods to and from the Central Congo Basin, the second largest tropical rainforest area in African republic increased by 991 TEUs and overall trade the world after the Amazon increased by about 70% year on year. Most of this trade was by major producers in the CAR. Brendan Montague, Editor of The Ecologist has identified some key points in the code such as: See: https://www.businessincameroon.com/public- the involvement of local communities and management/0503-10048-port-of-kribi-on-a-prospection- mission-in-the-central-african-republic indigenous people in forest governance management rights for forest-dependent Import substitution and self-sufficiency the new buzz communities words civil society adjudicating forest-concession Governments in several countries in the region such as allocations Ghana, Gabon and Cameroon are looking to develop benefit sharing in forest-concession contracts domestic industries so as to be less reliant on imports and local communities, indigenous people and civil to achieve a better trade balance. society to examine forest management plans In early July Cameroon Prime Minister, Joseph Dion However, Montague points out the involvement of Ngute, instructed the Ministry of Finance to prepare communities and civil society will only become clear proposals for the 2021 budget aimed at reducing the when the regulations on implementation are published. country’s reliance on imports. See: https://theecologist.org/2020/aug/07/new-law-africas- The Minister of Finance has said, given the decline in biggest-tropical-rainforest government revenues, the aim should be import substitution through the gradual reduction of tax Gabon – buyer interest slowly improving exemptions on some products that are weighing on the The Minister of Forestry in Gabon has been reappointed in trade balance as this will encourage local production on a a Cabinet reshuffle. It has been reported that he is larger scale. changing the management team in the ministry. In addition, the Minister said the emphasis will on Production in Gabon is still well below pre-pandemic improving the profitability and competitiveness of public levels and around a third of the Chinese mills are either enterprises. shut-down or operating at a low production level, milling mainly okoume, belli, okan and bilinga. The managers of See: https://www.businessincameroon.com/economy/0607- the Chinese companies have returned signaling the 10503-cameroon-plans-national-preference-measures-in-the- resumption of peeler mills. 2021-finance-law-to-reduce-imports Log export prices It has been estimated that exports are down almost 50%. West African logs FOB Euro per cu.m However the impression from producers is that demand in Asian and even in European markets is returning to normal Asian market LM B BC/C levels particularly as buyers for the Chinese market are Acajou/ Khaya/N'Gollon 265 265 175 active. Ayous/Obeche/Wawa 250 250 225 Azobe & ekki 275 275 175 Millers holding stocks of kevazingo are becoming Belli 280 280 - frustrated that a decision on the method for disposing of Bibolo/Dibétou 215 215 - these stocks is taking so long. Bilinga 275 275 - Iroko 300 280 225 Dedicated area in Kribi Port for CAR shippers Okoume (60% CI, 40% CE, 20% CS) (China 225 225 220 A delegation from Kribi Port, Cameroon was recently in only) Bangui, Central African Republic to meet with the Central Moabi 350 350 275 African Shippers Council. Movingui 200 200 - Niove 160 160 - According to the Kribi Port executives a decision was Okan 200 200 - made to create a joint team for the implementation of the Padouk 250 230 200 memorandum of understanding signed in February 2019 Sapele 260 260 200 between Kribi Port and the Shippers Council through Sipo/Utile 260 260 230 which Kribi Port promised a 30% discount on goods, 25% Tali 300 300 - on stevedoring and 75% on parking penalties to clients from the Central African Republic. 2 ITTO TTM Report: 24: 15 1 – 15 August 2020 Sawnwood export prices Of the three products classified as tertiary wood products West African sawnwood FOB Euro per cu.m (mouldings, dowels and doors) all recorded positive growth in both volume and value. Ayous FAS GMS 440 Bilinga FAS GMS 540 Okoumé FAS GMS 460 The markets in the first four months of 2020 were Asia Merchantable 310 (61%), Europe (19%), Africa (13%), America (5%) and Std/Btr GMS 320 the Middle East (24%). Teak, ceiba, wawa, mahogany and Sipo FAS GMS 500 denya were the leading species. FAS fixed sizes - FAS scantlings 520 Data from the Ghana Shippers Authourity shows that the Padouk FAS GMS 640 volume of cargo passing through the country’s two FAS scantlings 675 seaports in the first quarter of 2020 fell by almost 45% Strips 320 year on year. Sapele FAS Spanish sizes 450 FAS scantlings 480 Iroko FAS GMS 600 Lockdown impact on businesses in Ghana Scantlings 660 In the latest Business Tracker Survey report prepared by Strips 350 Ghana Statistical Service in collaboration with the United Khaya FAS GMS 480 Nations Development Programme (UNDP) and the World FAS fixed 540 Bank, an assessment was made of how COVID-19 is Moabi FAS GMS 620 affecting firms in Ghana. The report says: Scantlings 640 Movingui FAS GMS 420 “During Ghana’s partial lockdown, 35.7 percent of business establishments and 24.3 percent of household firms reported being closed. Firms in the partial lockdown Ghana areas report the highest levels of closures during that period, with 51.5 percent of firms in Greater Accra and Sawnwood still number one but exports dip sharply 55.4 percent of firms in the Ashanti region being closed. Ghana is no exception to other tropical timber exporting countries that are suffering from the effects of the global The sectors with the highest levels of closures during the pandemic. Timber exports during the first 4-months of this partial lockdown were education (65.4 percent), financial year were just 65,376 cubic metres compared to the over services (47.0 percent), transport and storage (46.4 100,000 cubic metres in the same period in 2019. percent) and manufacturing (39.8 percent). Volume of export shipments January to April 2020 Jan-Apr Jan-Apr Yoy % Even after the lifting of the lockdown measures, 16.2 2019 2200 Change percent of business establishments and 14.6 percent of household firms were still closed at the time of the survey. Primary 9,906 5,177 -47.7% The sectors with the highest rates of closures were Secondary 89,471 56,922 -36.4% education (63.0 percent), transport (34.0 percent) and accommodation and food services (24.0 percent). Tertiary 2,509 3,277 30.6% Of the businesses that are open, 91.4 percent of business Total 101,886 65,376 -36% establishments and 95.7 percent of household firms Data source: TIDD reported that sales in April decreased compared to the same month last year. Value of export shipments January to April 2020 Jan-Apr Jan-Apr Yoy % 2019 2200 Change Firms in the trade (93.7 percent) and manufacturing (92.7 percent) were largely affected. The average decrease in Primary 3,692,795 1,867,687 -49.4% sales was 60.6 percent. This corresponds to an estimated 115.2 million Ghana Cedis.” Secondary 47,145,669 27,852,751 -40.9% Tertiary 1,764,753 2,431,622 37.8% For the full report see: https://www.gh.undp.org/content/ghana/en/home/library/poverty/ Total 52,603,217 32,152,060 -39% ghana-covid-19-business-tracker-report.html Data source: TIDD Parliament approves land bill after reforms Air and kiln-dried sawnwood, which are classified in Ghana’s Parliament has approved the 2019 Lands Bill Ghana as a secondary wood products, maintained their which consolidates reforms made so far following the position as leading export items accounting for 50% and implementation of the National Land Policy in 1999.
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