Export Log Prices

Malaysian Export Log Prices. Us$per Cu. M FOB

350

300

250

200

150

100

50

o

31st

Jan

RSeraya

Seraya

,5th

Feb

. R'Seraya

31st ^n

29th

Feb

Price Movements

160

135

15th ^b

217

185

Export log prices during the first quarter haveremained very quiet. Prices of African Mahoganyappear to have dropped initially and then begunto recover, a similar pattern can be observed forSape!Ii but both changes are more a reflection ofeXchange rate changes rather than any marketmovement.

I5th

Mar

29th ^11

217

185

. Y'Seraya

South Sea Export Log Prices Us$ perCu. M FOB

31st

Mar

350

300

250

200

150

100

50

o

15th ^r

210

180

31 SI ,^r

21

Malaysian export prices for the tintbeTs illustratedappear to have jumped significantly at thebeginning of the year and to have then settled ataround Us $210 per Cu. in for Red Seraya and ataround Us$180 per Cu. in for Yellow Seraya.

31st

Jan

1:13rrelia

errr, nalia

15th

Feb

31st an

. netia

29th

Feb

152

127

151 e

I

Cameroon Export Log Prices Us$ perCu. M FOB

15th

libr

155

132

350

300

250

200

150

100

50

o

29th eb

3, st

h^r

Termnalia

155

132

I5th rib^7~

15t52

13132

31st

Jan

Nest^I

Sal, e, i

15th

Feb

31st ^'I

272

316

NGOiion

29th

Feb

'50/1^I>

270

304

15th

^r

29th !^I>

270

:^J4

31st

k^r

Sapelli

15th R^~

257

287

31st rib

27

29

Export Sawnwood Prices

Sawnwood prices have remained remarkably subduedduring the first quarter of 1996. Prices, across theboard have fluctuated in a narrow range of around 3-5% reflecting changes in eXchange rates rather thanany underlying demand trends.

Brazilian sawnwood prices have remained largelyunchanged since January. Mahogany has beenentering the market at between Us $970-980 per Cu. in.Prices of Gharialan sawnwood, predominantly for theEuropean market, have remained static reflecting thedull market and runnspired consumption. Similarlythe demand for Malaysian sawnwood has been quiethowever Me ranti has been traded in a range fromUs $645-680 per Cu. in somewhat wider than theeXchange rates would have indicated. Kenjing iscurrently within the range of Us $395-405 andMengkulang at Us $420-428 per Cu. in

BEETar, ^'t ^ Ri^sLl^ perQ. ,M

1000

galaian B^ ^ ^ic^LIS$ per QLM

800

InO

600

fom

41i

an

ZD

600

400

o

200

31st. ^'I

ri^^y

o

hog. nyatoba

31st^'I

rib: I^Ivd

29/11^,

I^I^, d

ado

31 n

31stk^'

.*^a

29th ^,

. too

980

650

a

he

335

400

210

980

650

31st rib

. Vl^Ia

IVbla^an ^t ^ ^us$ per O. LM

e

335

400

210

970

650

1000

800

r

970

635

335

400

210

6.0

S

4:0

335

400

210

SE"b

200

o

^'I I^>31st^'I 31stW

heat "ir' ok^,

21

I^Lire

31st .^'I 151'1 I^b

645

395

420

2^'11^b

645

395

420

395

^O

Iai'In^.

6ai

395

421

31st rib'

680

405

428

Plywood Exports

The plywood market in Japantinned towards the end of last yearand has stabilised dormg the firstquarter. The market movementsfor Indonesian and Malaysianplywood are strongly influencedby trends in Japanese productionand consumption. Since Februaryshipments of plywood to Japanhave eased and prices have settleddue to the relative stability of theUs$ Yen eXchange which hasbeen steady at around Yen I 05 perDSS,

Indonesia n Ex port Plywood P rices.Us$ per Cu. M

500

400

It is forecast that Japan will importsome 3 million cubic metres of plywood from Indonesia and some I Twillion cubic metres from Malaysiaduring 1996, Softwood plywood imports are expected to reach 400,000 cubic metres during the year. Theplywood market is witnessing some competition. MDF is competing with plywood for some funiitureuses and OSB is begin^g to foamre more strongly in constructional applications.

300

200

I00

o

3, st Jan

27-3mm

27-3n^

6- I2mn

18nm Rus

InO

st an

29th Feb

6-, 2mm

472

355

365

5 e

31st Mar

., 8mm Plus

460

350

375

M a Ia ysia n Ex po rt P Iyw o0 d P rice s.Us$ per Cu. M

e

460

350

380

500

5

400

300

r 31st

455

350

365

200

100

r

490

36

385

o31st

Ja n

3-6mm

9-12mm

I 8 mm PIu s

3-6 min

15th

Feb

31 st Jan

29th

Feb

9.2mm

450

360

380

I5th Fe b

450

360

380

15th

Mar

31st

Mar

.18mm Plus

29th Feb

450

360

380

15th Mar

445

370

385

31st Mar

470

390

385

European Furniture Market Summary

Italy

The indications are that the growni in production will continue through 1996. Forecasts are showing that afurtlier increase of production of around 6-7 percent is probable. Domestic sales are forecast to rise by 4percentin the year and exports are expected to grow by another 10-11 percent. Despite this encouragingpertonnarice and the predictions of continued growth into 1996 the financial pertbmiance of Italian furnituremanufacturers is not seen as improving a great deal as the cost of raw materials continues to rise.

In the first two months of the year domestic sales have dropped, after the modest 4% rise in 1995 and thishas meant that Italian furniture companies have no opportunity to increase prices to offset rising costs. It isnow forecast that in 1996 furniture prices in the domestic and even European market, will increase by nomore than a modest 3 - 4%.

1.1K

The economic climate is improving in theUK. Building activity rose by 21 % in thelast three months of 1995 compared to anoverall decline in building activity of 4%for the year as a whole, January figuressuggest that consumer confidence isreturning. At present the sawnwoodmarkets are very dull but the projectionsare that furhiture production is expectedto grow by +3.8% in 1996. In 1995 UKfirmture production was stagnant, (down0.2%), due to the decline in internalconsumption of 1.4%. This decline waspartly compensated however by thebuoyancy of exports (+8.8%).

ITTO

,'rance

Manufacture of Furniture. An Index ofProduction Volumes ,995

Industry analysts believe that in 1996 the French furniture sector is not expected to show signs of any realrecovery, with consumption and production of furnitureimproving only modestly by 1.5%. In 1995 Frenchfurniture production was stagnant, having risen by only +0.4%, itlis was the result of the positive growthof internal consumption (up by +1.1%). Exports alsoimproved (up by +4.4%) which compensated fortherise in imports which were up by 4.6%, helped by the sirengtli of the French Franc.

Germany

140

.^oe^

11QaC,^^

120

100

80

Xe,,=

60

40

20

In 1996 the expectations are that Gennany will see a growth in domestic demand forecast to be in theregion of 3%. However industrial production is unlikely to be positively affected, a denne of around -0.8% is expected. Due to the strong Dinark imports are forecast to rise by 9.5%, while exports will likelydecrease by an expected 2,19'0. Revised forecasts are for the economy to grow at around 2% during 1996.Furniture exports from Germany are forecast to grow by only 2% in 1996, this is in contrast to the situationlast year when production and exports were down by around 5%.

o

A ug Sept Nov

^- Gerrriany -,-- France - - to Iy

Jul Oct