Marketwatch reported that prices of Malaysian timber
products remained weak as plywood mills reduced
production by 35% to 40%, while furniture manufacturers
and sawmills were cutting production by up to 50%. The
demand for Malaysian timber products is highly dependent
on housing starts of major importing countries such as
Japan and the US.
Housing starts in Japan fell for the sixth month in a row,
according to the Japanese Ministry of Land, Infrastructure,
Transport and Tourism. Housing starts declined 32.4% in
April 2009 compared to the same month a year ago,
registering an estimated 66,198 units. During the same
period, overall building starts in Japan fell 32.5% to 9,431
units. In addition, construction orders from Japan’s 50
leading domestic construction firms declined 25.9% to
JPY562.8 billion (approx. USD5.8 billion).
US housing starts declined 13% to an annual rate of
458,000 units in April 2009, reported Bloomberg. The
decline was led by units for multifamily starts, which
showed a drop of 46%. Total construction on multifamily
homes, such as townhouses and apartment buildings,
declined to 90,000 in April 2009, down from 167,000 in
March 2009.
Some timber trade manufacturers continue to be of the
opinion that it may take up to 3 to 4 years for the
Malaysian timber industry to recover to the level estimated
before global economic downturn.
Global Forestry Services to audit FMUs
An independent third-party company, Global Forestry
Services (GFS), will provide audits of long-term licenses
for Forest Management Units (FMU) under a 2-year
project in the state of Sabah, according to the state forestry
director, Mr. Sam Mannan.
The Daily Express reported that the scope of work will
include but not be limited to a legal audit of the licensees,
which include both an approved Forest Management Plan
(FMP) and approved Annual Work Plan (AWP). In
addition, the performance of licensees will be based on the
level of compliance against an agreed checklist.
The project, ‘The Sabah Forestry Department-European
Union-Malaysia Timber Council Independent Third Party
Auditing’, will cost about RM964,390.00. The Dutch
government and the German Agency for Technical Cooperation
will be contributing EUR193,673 (RM950,000)
for the first year activities.
Mr. Mannan added that this may help to address the
number of issues and challenges under the proposed EUMalaysia
Voluntary Partnership Agreement on Forest
Law, Governance and Trade. Furthermore, it will assist
licensees to be certified under a credible and
internationally recognized system, which will be made
compulsory by year 2014.
Malaysia Log Prices Malaysia
Log Prices
Sarawak
log, FOB
US$
per m³
Meranti SQ up
228-252
Small
211-242
Super small
200-224
Keruing SQ up
216-228
Small
187-218
Super small
162-193
Kapur SQ up
206-231
Selangan Batu SQ up
178-215
Pen. Malaysia
logs, domestic (SQ)
US$ per m³
DR Meranti
232-251
Balau
298-325
Merbau
320-353
Rubberwood
42-77
Keruing
215-231
Peninsular
Malaysian meranti logs are top grade and are used for scantlings for
the EU. Their prices are higher than Sarawaks.
Malaysia
Sawnwood Prices
Malaysia
Sawnwood,
FOB
US$
per m³
White Meranti A & up
280-311
Seraya Scantlings (75x125 KD)
446-461⇓
Sepetir Boards
249-271
Sesendok 25,50mm
349-367 ⇓
Kembang Semangkok
294-317
Malaysian
Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
328-348 ⇓
Merbau
469-520⇓
Kempas 50mmx (75,100 & 125mm)
260-300
Rubberwood
25x75x660mm up
196-246
50-75mm Sq.
237-269
>75mm Sq.
259-288
Malaysia Plywood Prices
Malaysia
ply MR BB/CC, FOB
US$
per m³
2.7mm
413-475 ⇓
3mm
390-420 ⇓
9mm & up
335-407 ⇓
Meranti ply
BB/CC, domestic
US$ per m³
3mm
386-427 ⇓
12-18mm
320-349 ⇓
Other
Malaysia Panel Prices
Malaysia,
Other Panels, FOB
US$
per m³
Particleboard Export 12mm & up
227-250 ⇓
Domestic 12mm & up
212-229 ⇓
MDF
Export 15-19mm
282-314 ⇓
Domestic 12-18mm
271-289 ⇓
Malaysia
Added Value Product Prices
Malaysia,
Mouldings, FOB
US$
per m³
Selagan Batu Decking
541-551 ⇓
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
556-569 ⇓
Grade B
507-516 ⇓
Malaysia
Furniture and Parts Prices
Malaysia,
Rubberwood, FOB
US$ per piece
Semi-finished dining table solid laminated top
2.5'x4', extension leaf
