Month: June 2011

CIF Europe prices for South East Asian and Chinese hardwood plywood increased dramatically in the second quarter of 2011 in response to tight supplies, rising production costs, currency movements and firm demand in Asia. Prices have continued to rise for July and August shipment. Prices for Malaysian BB/CC raw plywood on offer to European buyers now exceed Indo96+40% and those for equivalent Indonesian products may be over Indo96+50%, levels never seen before. 

Traditionally France has played a central role in the international tropical hardwood trade. Over recent year’s this influence has diminished as a greater proportion of tropical hardwood is diverted away from Europe and into emerging markets, as tropical hardwood has lost competitiveness in Europe, and as tropical producing countries have restricted log exports and increased domestic production. Nevertheless France remains the leading European importer of tropical wood, accounting for around 900,000 m3 (roundwood equivalent volume) of the 4.5 million m3 of tropical wood products imported into the EU during 2010. French companies retain large investments in the tropical wood industry, notably in Central and West Africa.