Tropical Timber Market Report
Volume 28 Number 16 16th – 31st August 2024
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 timbermarket. 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 ti@itto.int.

Contents

Headlines

Central/West Africa

2

Ghana

2

Malaysia

4

Indonesia

Page
Ghana’s non-traditional exports almost
US$4 bil. in 2023

4

5

Sabah TLAS - aligning with the EUDR

5Myanmar

7

India

7

Indonesian furniture makers securesales in India

5

Vietnam

9

Brazil11

Indian construction sector - developers facing
liquidity issues

7

Peru

12

Promoting the wood value chain in Peru

13

Japan

14

China

18

China’s tropical sawnwood imports rise

20

EU

22

North America

26

European plywood production and imports
at record low

22

Currencies and Abbreviations

29

Ocean FreightPrice Indices2930

US existing home sales increase for first timein five months

26

Top story
Ghana Shipping - New law to replace 50 year
old legislation
Parliament has passed the Ghana Shippers
Authority Bill, 2024, into Law to replace the 50
year old NRCD 254 (1974) Legislation. The newlaw seeks to regulate the commercial activities
and also to address the issue of charges thatburden importers and exporters.
The Law empowers the Ghana Shippers’
Authority (GSA) to better adapt to emerging
trends and complexities within the shipping andlogistics industry.
Page 3

Central and West Africa
Power outages disrupting production

The timber industry in Gabon is under severe pressure due
to widespread disruptions in energy supply, particularly in
special economic zones. These disruptions are said to belinked to financial difficulties within the SEEG powercompany which is partly owned by the British firm
Aggreko.
The reported power company debt of 15 billion FCFA to
Aggreko has led to a suspension of the electricity supply
severely hampering production and resulting in worker
layoffs. Although SEEG has recently managed to secure
funds from Bank BFI to address the debt, ongoing issues
such as the prolonged repair of turbines and insufficientwater levels in the Kinguélé Dam are causes for concern in
Gabon.
See:https://www.lenouveaugabon.com/fr/energies/2108-20408electricite-aggreko-menace-darreter-ses-centrales-a-cause-de-15milliards-fcfa-des-factures-impayees-par-la-seeg
Intensified oversight of forest operations

The government has intensified its oversight of forestry
operations, particularly focusing on companies failing tocomply with the Community Contribution Commitment(CCC) and land tax obligations.
The CCC mandates that operators share production figuresand contribute 800 FCFA per cubic metre of timber
harvested with local communities and regional
administrations.
Non-compliance with these regulations is met with strict
penalties, including the cancellation of logging
concessions. Some say enforcement at this time is driven
by political motivations ahead of the upcoming
presidential elections.
Observations on the market

Operators report timber markets are giving mixed signals.
The market for sawn azobe remains robust with steadydemand from Dutch buyers for garden squares, waterways
and dragline mats/sheets these mats provide a stablesurface for heavy machinery to move on. Most pieces
measure 20 x 20 cm and range from 5 to 7 m in length.
Conversely, the market for lower density timbers,
particularly okoume and ayous, is experiencing sluggish
demand with China making small purchases at low prices.
Producers in Cameroon are said to have an advantage as
they can offer more competitive prices than Gabon andCongo as export duties are lower.

Producers in the region say price levels are expected toremain stable in the near term, influenced by the end of theholiday season in Europe and ongoing demand
fluctuations in key markets such as China, the Philippines
and the Middle East.
The industry remains cautiously optimistic though thepotential for further disruptions and the impact of stringent
regulatory enforcement needs to be closely monitored.
Log export prices
West African logs
Asian market

B

BC/C

Acajou/ Khaya/N”Gollon

230

230

175

Ayous/Obeche/Wawa

230

230

225

Azobe & ekki

250

250

175

Belli
Bibolo/Dibétou
Bilinga

250
200
250

250
200
250

-

Iroko

290

270

225

Okoume (60% CI, 40%
CE, 20% CS) (China only)

200

200

-

Moabi

260

260

220

Movingui

180

180

-

Niove
Okan

160
210

160
210

-

Padouk

300

270

240

Sapele

260

260

220

Sipo/Utile
Tali

260
260

260
260

230
-

Sawnwood export prices
West African sawnwood

FOB Euro per cu.m

Ayous FAS GMS
Bilinga FAS GMS
Okoumé FAS GMS
Merchantable KD
Std/Btr GMS
Sipo FAS GMS
FAS fixed sizes
FAS scantlings
Padouk FAS GMS
FAS scantlings
Strips
Sapele FAS Spanish sizes
FAS scantlings
Iroko FAS GMS
Scantlings
StripsKhaya FAS GMS
FAS fixed
Moabi FAS GMS
Scantlings
Movingui FAS GMS

425
680
450
410
400
520
540
900
975
400
550
560
800
850
400
450
500
550
550
460

Producers cautiously optimistic on demand prospects

Weather conditions are impacting operations with heavy
rains affecting production in the Cameroon and the rainseason has started in Gabon and Congo. The rains make it
difficult to maintain log stocks and production schedules
tend to slide.
2

FOB Euro per cu.m
LM

ITTO TTM Report: 28:16 16 – 31 August 2024

GhanaOverall exports dip but positive growths for someproducts

Data from the Timber Industry Development Division(TIDD) of the Forestry Commission indicates that wood
product exports in the first half year of this year were133,126 cu.m. In the same period in 2023 the volume was155,422 cu.m, indicating a 14% year on year decline in
2024.
For the same period, total receipts from wood productexports were Eur60.58 million compared to the Eur70.53
million in the first half of 2023, a 14% drop.
Wood product exports cu.m (First half year)
2023

2024

Y-O-Y

Vol.(cu.m)Vol.(cu.m)% change

AD saw nw ood

87,54473,836-16%

KD saw nw ood

20,907

17,793-15%

Billets

8,367

6,635

-21%

Plyw ood (Overland)

10,748

8,988

-16%

Plyw ood

8,142

7,089

-13%

Rotary veneer

4,257

4,632

9%

Teak logs

5,599

6,087

9%

Mouldings

4,483

3,091

-31%

Sliced veneer

3,471

2,965

-15%

Briquettes

1,050

1,305

24%

Others (6)

854

705

-17%

155,422

133,126-14%

Product

Total

Data source: TIDD

The decline in export volumes is partly a reflection of
insufficient raw materials high production costs and weakinternational demand. As production and shipping costs
rise millers lose the incentive to boost production.
In spite of the overall decline in export volumes andvalues for the half year exports of briquettes, teak logs androtary cut veneer registered volume increases of 24%, 9%
and 9% respectively in the current half year compared to2023.
Revenue generated from these three products also
recorded corresponding positive growth during the period
in 2024 against the same period in 2023 as shown in graphbelow;
Wood products recording positive earnings growth(first half 2023/24)
2,196

50.0%

2,267

47.0%
1,975

2,000

Eur'000

35.0%
1,500

30.0%
25.0%

1,000

20.0%
15.0%

500

8.5%

183

269

0

0.0%

Rotary Veneer

Teak Logs2023

Val (Eur'000)

Y-O-Y

% Val

Briquettes
2024

Parliament has passed the Ghana Shippers Authority Bill,2024, into Law to replace the 50 year old NRCD 254(1974) Legislation. The new law seeks to regulate thecommercial activities of shippers and also to address theissue of unfair and excessive charges that burden
importers and exporters who use Ghana’s sea, air and land
frontiers.
The new law aims to introduce transparency in thedetermination of port fees and charges to ensure that thereis accountability in the legal movement of international
trade cargo across all of borders of Ghana. Additionally, it
is also to make Ghana a preferred transit trade channel forher landlocked neighbours of Burkina Faso, Mali and
Niger and to enhance the sector’s revenue collection.
The Law empowers the Ghana Shippers Authority (GSA)
to better adapt to emerging trends and complexities within
the shipping and logistics industry. It will also protect theinterests of shippers and shipping service providers andimprove the GSA regulatory oversight of the entire
industry. The Chief Executive Officer of GSA, Kwesi
Baffour Sarpon, expressed optimism saying the passing of
the law is a huge step in the right direction and theenforcement of the law will be fair and representative of
the interests of the shipping industry.
The Ghana Union of Traders Association (GUTA) has
welcomed the newly passed GSA Law saying it will offer
the Authority “the teeth” to effectively regulate theshipping industry to approve or disapprove import charges
that affect the general cost of doing business in the
country.
See: https://shippers.org.gh/index.php/parliament-passesshippers-authority-bill-into-law/
FORM Ghana agreement with Climate Impact Partners
on carbon credits

FORM Ghana Limited has signed an agreement with
Climate Impact Partners, a carbon finance organisation, toprovide exclusive access to 371,000 high-quality carbon
credits from a reforestation project in two locations inCentral Ghana.The project aims to reforest 20,000 hectaresof degraded forest reserves in Ghana. Plantation species
for the project includes teak and some native species.
The pres release says the project has created more than
1000 jobs, with 40% of women participation in acommunity impacted by climate change. The project is
expected to promote land management practices that help
to enhance food security.

10.0%
5.0%

3.2%

Ghana Shipping - New law to replace the 50 year old
legislation

45.0%
40.0%

1,820

Y-o-Y % change

2,500

Of the 16 products exported during the period sawnwood(91,629 cu.m), veneers (7,597 cu.m) and plywood (16,077
cu.m) together accounted for 87% of total export volumes.

Val (Eur'000)

See: https://www.climateimpact.com/news-insights/news/formghana-and-climate-impact-partners-announce-exclusiveagreement-on-400000-carbon-removal-credits/

Data source: TIDD

3

ITTO TTM Report: 28:16 16 – 31 August 2024

Non-traditional exports almost US$4 bil. in 2023

The Ghana Export Promotion Authority (GEPA) has
reported a remarkable doubling of Non-Traditional
Exports (NTEs) earnings in 2023 which reached almost
US$4 billion a marked increase from the US$3.5 billion
recorded in 2022.
The driving force behind this expansion was the rise inexports closely linked to improved performance in the
manufactures/semi-processed
products
andcrafts(handicrafts) sectors.
The growth could also be attributed to a combination of
structural changes within Ghana’s NTEs framework andthe successful implementation of the National Export
Development Strategy (NEDS).
According to the GEPA report during the period 1,702
companies were engaged in exporting 625 non-traditional
products to 156 countries. Notably, the earnings from 88
exporting companies contributed 80% of the total nontraditional exports for the year under review.

Export sawnwood prices 
Ghana sawnwood, FOB
FAS 25-100mmx150mm up x 2.4m up
Afrormosia
Asanfina
Ceiba
DahomaEdinam (mixed redwood)
Emeri
African mahogany (Ivorensis)
MakoreNiangon
Odum
SapeleWawa 1C & SelectPlywood export prices
Plywood, FOB
BB/CC
Ceiba
4mm
414
6mm
385
9mm
433
12mm
324
15mm
396
18mm
460

Euro per cu.m
Air-dried Kiln-dried
860
925
465
947
290
335
434
590
640
713
750
712
846
1,029
560
840
727
876
836 1,180
656
807
445
463

Euro per cu.m
Ofram
580
535
504
489
385
415

Asanfina
641
604
560
480
430
383

Grade AB/BB would attract a premium of 10%, B/BB 5%, C/CC 5% and CC/CC 10%.

Sliced veneer export prices

Burkina Faso emerged as the top market destination for
Non-Traditional Exports (NTEs), accounting for 20% of
NTEs. The Netherlands followed closely, absorbing 15%
of NTEs.
ECOWAS countries, including Togo, Cote D’Ivoire andMali, made up 30% of the top ten market destinations for
NTEs. The remaining market shares were distributed
among North America (10%), India (8%), Italy (6%),
Belgium (6%) and the United Kingdom (6%).
To enhance exports, the Ghana Export Promotion
Authority (GEPA) has embarked on several initiatives,
including market research, export promotion campaigns
and capacity building for exporters.
See: https://www.gepaghana.org/export-statistic/non-traditionalexport-statistics-2023-report/
Boule export prices
Euro per cu.m
330
420
850
910

Black Ofram
Black Ofram Kiln dry
NiangonNiangon Kiln dry

Rotary veneer export prices
Rotary Veneer, FOB
Ceiba
Chenchen
Ogea
Essa
Ofram

Euro per cu.m

CORE (1-1.9 mm )FACE (>2mm)

417
472
368
599
350

441
612
590
711
435

Sliced face veneer
Asanfina
AvodireChenchen
Mahogany
MakoreOdum
SapeleFOBEuro per cu.m
1,326
1,009
758
1,825
1,788
1,191
1,554

Malaysia
Solid second quarter GDP growth

Bank Negara Malaysia announced that the country’s
economy advanced by 5.9% year on year in the second
quarter of 2024. This growth was fuelled by increased
domestic demand and expansion of exports.
The Bank Governor said growth in investment reflectedrobust capacity expansion by businesses as well as
continued targeted spending by government and public
corporations, adding, “the net export registered a positive
turnaround due to the stronger export recovery and higher
external demand and a global technology upcycle”.
In August the Malaysian currency strengthened to 18month highs against the US dollar as the U.S. Federal
Reserve contemplates a rate cut.
The Malaysian ringgit was the best-performing Asiancurrency, up 5.3% for the year in mid August trading at
4.361 per dollar its highest point since February 2023. The
currency's strength is a reversal from February whenit dropped to its weakest in 26 years.
See: https://asia.nikkei.com/Economy/Malaysia-GDP-growthaccelerates-to-5.9-in-Q2

4

ITTO TTM Report: 28:16 16 – 31 August 2024

Sabah TLAS - aligning with the EUDRThe Sabah Timber Legality Assurance System (TLAS) isthe due diligence system designed to ensure that timber
products from Sabah are manufactured from wood raw
materials harvested, processed and traded in strict
compliance with local laws and international standards.
Since 2007 Sabah has been actively participating in the
EU negotiations regarding the Forest Law Enforcement,
Governance and Trade (FLEGT) and the VoluntaryPartnership Agreement (VPA) for Malaysia.
The Sabah TLAS was developed and endorsed in 2009 in
response to growing international concerns regarding thehigh-risk trade in tropical timber and to meet EU
requirements
under
the
FLEGT
programme.
The Sabah TLAS encompasses six principles and 20
criteria covering 65 upstream companies, including 43
Sustainable Forest Management License Agreements(SFMLA) holders and 156 downstream mill and trader
companies.
Over the past decade, the Sabah TLAS has beenstrengthened through stakeholder consultations and
Implementing Agencies Coordination Committee (IACC)
meetings to enhance compliance, transparency, and forest
governance.
In June 2024, the Sabah Forestry Department collaborated
with the EU to update the Sabah TLAS aligning with the
EUDR incorporating key certification elements such assustainability, environmental protection and social
responsibility.
See:
https://theborneopost.pressreader.com/article/281629605568196
Plantations ensure the sustainable supply of timber

Deputy Plantation and Commodities Minister, Chan Foong
Hin, concluded a working visit to Keningau in Sabah
where he underscored the critical role of forestry
plantations in ensuring the sustainable supply of timber to
Malaysia’s wood industry.
The Deputy Minister’s visit to the Sapulut Forest Reserve
was to observe sustainable forest management practices.
The Reserve is recognised locally as a leading example ofindustrial tree plantation efforts in Sabah.
See:
http://theborneopost.pressreader.com/article/281612425722876
Sarawak / Australia collaboration

The Sarawak government, represented by the Forest
Department Sarawak (FDS), signed a letter of intent(LOI) with the University of the Sunshine Coast (UniSC)
aimed at building bilateral collaboration in forestry
research, capacity building and technology transfer.

Prior to the LOI signing the Sarawak delegation was
briefed with research presentations by four lecturers andresearchers of UniSC and Forest Research Institute on the
topics including ‘Breeding and Silviculture to Improve
Plantation Productivity and Value’ as well as ‘Pest
Management in Plantation Forests in Borneo’.
See:https://theborneopost.pressreader.com/article/281578065979482
Furniture Design Competition

The MIFF Furniture Design Competition celebrates thecreative spirit of design and to uncover young talent tosupport Malaysia’s thriving furniture industry. Organised
each year since 2010 in conjunction with MalaysianInternational Furniture Fair (MIFF), it offers the best
platform for emerging designers to showcase theirinnovative ideas.
See: https://www.mifffdc.com/about/?cid=edm140825ebriefing

Indonesia
Furniture sector secures sales in India

The Ministry of Industry has reported that domestic
furniture makers did well at the 2024 IndexPlus Delhi
Exhibition securing Rp17 billion in orders. Ignatius
Warsito from the Ministry remarked that India is apromising market for Indonesia furniture makers. Adding,
based on IndexPlus data the Indian consumer market has
the potential to be the third-largest in the world by 2027.
Furthermore, the percentage of the Indian population
living in urban areas is increasing and this creates apotential market for furniture of US$40 billion.
"We hope the large market potential and dynamic furnituremarket trends can be utilised by the furniture sector,
including furniture designers, who play a major role inrealising marketable furniture design trends" he remarked.
See: https://www.neraca.co.id/article/203905/industri-furniturbukukan-nilai-komitmen-rp17-miliar-di-india

In related news, the chairman of the Indonesian Furniture
and Craft Industry Association (HIMKI), Abdul Sobur,
estimates that the export market will grow 5-8% this yearwith the domestic market growing 4-6%. Expansion will
be supported by the government's initiative to boost thefurniture industry, including the programme to restructuremachinery and equipment for the wood processing
industry.
The restructuring programme aims to improve
competitiveness and also support the growth of upstream
industries. The chairman of the Indonesian Sawmill andWoodworking
Association(ISWA),
Wiradadi
Soeprayogo, stated that there has been a surge in furniture
demand both domestically and in the international market
and Indonesia can position iself as a strategic exporter.
See: https://m.antaranews.com/amp/berita/4275899/himkiperkirakan-pasar-ekspor-industri-mebel-tumbuh-8-persen

5

ITTO TTM Report: 28:16 16 – 31 August 2024

Indonesia targets 11 million ha. of plantations

Boosting downstream sector

The Ministry of Environment and Forestry (KLHK),
through the Environmental and Forestry Instrument
Standardisation Agency (BSILHK), is preparing Standards
for calculating emission reductions by Industrial
Plantation Forests (HTI) as part of efforts to mitigate
climate change.

The Minister of Environment and Forestry, Siti Nurbaya,
has called for boosting the downstream sector, including
marketing to support products from Social Forestry areas
which cover more than 8 million hectares. According toSiti, access to 8.08 million hectares was given to 1.3
million heads of families.

The Head of BSILHK, Ary Sudijanto, said that thedevelopment of industrial plantations is not only to meetthe demand for roundwood for the timber industry but also
to fulfill the Long-Term Strategy for a Low Carbon
Scenario compatible with Paris Agreement (LTS-LCCP)
and the NDC aims.

Siti also emphasised the expansion of markets for primary
forest products through the Forest Product Processing
Business License (PBPHH) utilising community wood as
raw material. She mentioned that the programme had
established community forests to ensure the continuous
availability of raw materials through collaboration with thecommunity.

Ary stated that the target for the development of plantation
forests in Indonesia by 2030 is 11.227 million hectares.
This will significantly contribute to achieving the'Indonesia's FOLU Net Sink 2030' target andimplementing the President's mandate through Presidential
Decree 98/2021 concerning the Implementation of Carbon
Economic Value (NEK).
See:
https://lestari.kompas.com/read/2024/08/12/162610986/klhkhutan-tanaman-industri-disiapkan-sebagai-pengurang-emisikarbon.
Geo-spatial data to determine forest areas

The Indonesian government, through the Ministry ofEnvironment and Forestry (KLHK), is actively working to
finalise the process of determining forest areas. This isbeing done to establish legal certainty regarding the status,
location, boundaries, and extent of forest areas. It is also
aimed at preventing forestry crimes such as encroachment,
illegal logging and unauthorised occupation.
The Directorate General of Forestry Planning andEnvironmental Management (Ditjen PKTL) in the
Ministry plays a strategic role in accelerating thedetermination of the legal status of forest areas.
The Director of Forest Area Establishment andManagement (PPKH), Donny August Satria Yudha,
revealed that the Ministry is committed to accurately
demarcating forested area saying;“We have completed the boundary marking and as of July2024 106.5 million hectares of forested areas have been
determined. Currently, we are in the process of correcting
documents for the remaining 16% to ensure proper
administrative order and prevent any future discrepancies."

See: https://wartaekonomi.co.id/read542086/produk-perhutanansosial-perlu-digenjot-hilirisasi-begini-kata-menterinya-jokowi

In related news, the steadily increasing value of economictransactions involving forest farmer groups (KTH) has
been driving growth of regional economies according toMinister Siti Nurbaya Bakar. She highlighted that the total
value of KTH economic transactions jumped from Rp448
billion (US$28.5 million) in 2022 to Rp730 billion(US$46.4 million) in 2023. As of July 2024, as many as
4,736 KTHs have made economic transactions worth
Rp535 billion (US$34 million).
She added, KTH activities have contributed not only to thefinances of the farmers but also to the growth of regional
economies through the forestry sub-sector. She noted thatthe positive trend has been the result of the schemes andprogrammes implemented by her ministry.
She highlighted the vital role played by forestry extension
workers in empowering and guiding people at thegrassroots level in managing forest areas and businessdevelopment.
Furthermore, she underscored that the economic
performance of KTH is a manifestation of people's
genuine participation in environmental and forestry
development efforts in Indonesia which she believes haveintensified in recent years.
See: https://en.antaranews.com/news/322559/forest-farmersplaying-vital-role-in-boosting-local-economies-govt

To monitor forest areas, the Directorate General of PKTL
uses geo-spatial data. Erik Teguh Primiantoro, Director ofForest Resources Inventory and Monitoring, mentionedthat the Ministry of Environment and Forestry has
introduced the National Forest Monitoring System(SIMONTANA) and the Ministry of Environment andForestry Geospatial Information System (SIGAP KLHK).
See: https://news.detik.com/berita/d-7494236/klhk-manfaatkandata-geospasial-dalam-penetapan-kawasan-hutan-di-ri.

6

Data source: License Information Unit. http://silk.dephut.go.id/

ITTO TTM Report: 28:16 16 – 31 August 2024

MyanmarMerchants seek review of mandatory FX conversion
poicy

The Central Bank of Myanmar (CBM) has reduced the
mandatory conversion of foreign currency export earnings
into the kyat (MMK) from 35% to 25%. This policy,
initially introduced in August 2022, required exporters toconvert 65% of their earnings into MMK. The local media
says, despite these reductions merchants argue that being
forced to convert at rates far below the market value
remains should be reviewed.
Myanmar's ongoing currency crisis, exacerbated by thispolicy, is reportedly providing the military authorities withsignificant income from controlling foreign currency
exchange rates.
An analysis reported by the press estimates that the gap
between market and enforced conversion rates could haveearned the regime up to 6.4 trillion kyats (US$1.8 billion)
by June 2023. This gap stems from forcing businesses toconvert their foreign currency at rates that overvalue thekyat, far exceeding other forms of government revenue.
Since 2021, the market rate for MMK has plummetedfrom around 1,300 to around 6,000 per US dollar, while
the CBM’s official rate is 2,100 kyats per dollar. The
authorities regulation of forex rates has been viewed ashaving led to significant economic distortions contributing
to a decline in economic activity and growth of theinformal economy.
See: https://www.irrawaddy.com/business/myanmar-centralbanks-latest-forex-conversion-move-fails-to-impress-traders.html
andhttps://www.irrawaddy.com/news/burma/myanmars-junta-isfunding-its-war-through-forex-scams-economists-say.html
Fuel importers struggling with payments due to Kyat
devaluation

The Central Bank of Myanmar announced that it would
inject US$100 million into the foreign exchange market tosupport fuel importers struggling with payments due to theongoing devaluation of the kyat against the US dollar.
Since the military takeover in 2021, the kyat has plunged,
making it difficult for importers to secure fuel shipments.
Rising costs for cooking oil, rice and other essentials havecompounded the crisis as the kyat continues to depreciate.
See: https://www.pattayamail.com/thailandnews/myanmarscentral-bank-injects-100-million-us-dollar-to-aid-fuel-importersamid-currency-crisis-468927
Interest rate increased

The Central Bank of Myanmar (CBM) announced on 14
August 2024 that it has revised its interest rates to address
inflation, offer better deposit return and boost economic
growth by enhancing the bank loan capabilities. The newinterest rate on deposits will be 9% and interest rate onloans will be 15%.

Authorities try to ‘capture’ more of overseas worker
remittances

Myanmar regime has intensified its scrutiny of labour
agencies in a bid to capture more from overseas workers'
remittances. Under the current regulations, both theagency and the worker are required to sign an employment
contract in the presence of a labor ministry official before
going abroad. The contract requires workers to remit atleast 25% of their earnings via authorized channels. It also
states that non-compliance will result in a three-year ban
from working overseas on the expiration of their current
permit.
This move is part of the regime's broader strategy toalleviate its foreign currency shortage, which has
contributed to rising economic instability but many
migrant workers are reluctant to use formal banking
channels to send their wages home due to the significant
gap between the authorised bank and market exchange
rates. The bank rate is set at 4,150 kyat per dollar while
the market rate is around 6,000 kyat to the dollar.
See: https://asia.nikkei.com/Spotlight/MyanmarCrisis/Myanmar-reins-in-employment-agencies-to-harvestremittances

India
Construction sector - developers facing liquidity
issues

A report from real estate data provider Prop Equity saysthat 2,000 new housing projects in India are being stalledby administrative and financial hurdles. That amounts toover 500,000 new dwellings. These building developments
are across 42 cities, with Delhi, Mumbai and Bengalaru
worst affected.
The causes of delay are cited as financial constraints faced
by developers, regulatory issues and problems in landacquisition and obtaining necessary approvals. Added
problems include high levels of unsold housing inventory.
The construction sector is urging government to provide
financial support for developers facing liquidity issues, tostreamline regulatory processes and enforce project
timelines more strictly.
See: https://www.constructionworld.in/latest-constructionnews/real-estate-news/nearly-2000-housing-projects-stalled-inindia/61017
Government urged to consider allowing more Chinese
investment

An annual report on the health of the Indian economy has
departed from previous editions and recommended
government to allow more foreign direct investment (FDI)
from China. There have been strict controls on Chinese
investment since 2020. The emphasis has since been on
developing trade but the July report by India's Chief
Economic Adviser, V. Anantha Nageswaran, recommends
a relaxation of the FDI rules.

See: https://eng.mizzima.com/2024/08/18/12948

7

ITTO TTM Report: 28:16 16 – 31 August 2024

"Choosing FDI as a strategy appears more advantageousthan relying on trade,” he said. "As the U.S. and Europe
shift their immediate sourcing away from China, it is more
effective to have Chinese companies invest in India andthen export the products to these markets rather thanimporting from China, adding minimal value, and then reexporting them.”
See:
https://www.indiabudget.gov.in/economicsurvey/doc/echapter.pdf
andhttps://asia.nikkei.com/Economy/India-economic-report-cardtriggers-debate-over-China-investment

Plywood manufacturer expanding plantations

One of India’s largest wood panel manufacturers is
expanding plantation operations to meet its raw material
requirements. The company has planted about 52,983
acres (21,441 hectares) with over 42 million saplings. The
target of its current programme is a total of 60,000 acresby 2025. The plantations are in Nagaland, West Bengal,
Odisha and Gujarat.
The company has engaged Rain Forest Research Institute,
local communities and farmers to develop plantations of
eucalyptus, khokan (Duabanga grandiflora) and neem
(Azadirachta indica).
India’s Ministry of Defence has also announced a tree
planting project. At various MOD sites across India, alongwith the Delhi Development Authority and other local
governments, it plans to plant 1.5 million saplings.
Source: https://www.plyreporter.com/
https://timesofindia.indiatimes.com/business/indiabusiness/greenply-gets-into-plantation-drive-to-ease-rawmaterial-supply/articleshow/109504616.cms
andhttps://www.mediaeyenews.com/news/announcement/mas
sive-tree-plantation-drive-to-be-launched-by-defenceministry-next-month-on-independence-day/126819.html
Estonian mission explores opportunities in India

Seven Estonian timber companies recently visited India on
a trade mission organised by Enterprise Estonia. Startingin Kandla, Gujarat, one of India’s major timber port hubs,
the Estonian delegation interacted with owners of trading
houses and sawmills to identify potential business
opportunities and partners.
The group met with the Kandla Timber Association
representing over 2,000 timber-related businesses in theregion. Companies expressed a strong desire to collaborate
with Estonian businesses to help meet increasing demandfor high-quality wood products in India.
In Mumbai, the delegation met with architects, importers
and log house builders to discuss their timber
requirements.
Source: https://www.mediaeyenews.com/news

Climate change impacts Indian forest CO2 absorption

Global warming-induced weather changes are reducing theCO2 absorption potential of India’s forests and theircapacity in turn to mitigate climate change say researchers.
According to studies by researchers at the Institute ofTechnology in Bombay and Birla Institute of Technology
and Science, Goa, the key to the issue is the impact ofrising temperatures on photosynthesis.
Higher CO2 levels in the atmosphere can boost
photosynthesis but very high temperatures hinder enzymes
crucial for the process. The research found that innortheast regions of India and the Western Ghats, despite
an increase in green cover from 2001-2019, there has beena decrease in forest CO2 uptake
See: https://pwonlyias.com/current-affairs/carbon-absorption-ofindian-forest/
Cost C&F Indian ports in US dollars, Hoppus measure
Teak log prices, C&F US$/Hoppus cu.m
Hoppus cu.m

US$ C&F

Brazil144425

Colombia
Costa Rica

190
216

377
375

Nigeria

-

-

Benin

208

565

Tanzania

96

450

Laos
South Sudan
GuatemalaVenezuela

92
-

410
-

Teak sawnwood prices, C&F US$/cu.m
Benin

cu.m
172

US$ C&F
680

Brazil99575

Colombia--

Costa Rica
Ecuador

173
-

515
-

Ghana
Ivory Coast
Nigeria

94
176
142

440
845
450

South Sudan
Tanzania
Togo

177
121
187

580
442
410

Panama99

480

Locally milled sawnwood prices
Sawnwood Ex-mill
Merbau
Balau
Resak
Kapur

Rs per cu.ft.
4,300 - 4,700
2,900 - 3,200-

Kempas1,600 - 1,900

Red meranti

1,700 - 2,000

Radiata pine

1,000 - 1,200

Whitewood

950 - 1,150

Price range depends mainly on lengths and cross-section

8

ITTO TTM Report: 28:16 16 – 31 August 2024

Sawn hardwood prices
Sawnwood(Ex-warehouse)

Rs per cu.ft.

(KD 12%)Beech

1,800 - 2,100

Sycamore
Red Oak

2,300 - 2,600
2,800 - 3,200

White Oak

3,200 - 3,600

American Walnut
Hemlock STD grade

5,200 - 5,800
1,800 - 2,100

Western Red Cedar
Douglas Fir

2,900 - 3,250
2,300 - 2,500

Price range depends mainly on lengths and cross-section
Domestic ex-warehouse prices for locallymanufactured WBP plywood
Plywood
Rs. per sq.ft
Ex-warehouse
4mm

84.00

6mm

97.00

9mm

115.0012mm

137.0015mm

178.0018mm

195.00

Domestic ex-warehouse prices for locallymanufactured MR plywood
Plywood

Rs. per sq.ft

Ex-warehouse
4mm

57.00

6mm

73.00

9mm

84.00

12mm

99.00

15mm

134.0019mm

143.005mm Flexible ply

89.00

VietnamWood and wood product (W&WP) trade highlights

According to statistics from the General Department of
Customs, in July 2024 Vietnam’s wood and wood
products (W&WP) exports reached US$1.38 billion. That
was up 111% compared to June 2024 and up 23%
compared to July 2023. Of this, the wood product exports
contributed US$981.1 million, up 15% compared to June
2024 and30% compared to July 2023.
In the first seven months of 2024, W&WP exports were
US$8.9 billion, up 24% over the same period in 2023. Of
the total, wood products accounted for US$6.1 billion,
which was 24% ahead of the same period in 2023.

9

W&WP exports to Germany in July 2024 amounted to
US$4.3 million, up 25% compared to July 2023. In thefirst seven months, they reached US$48.8 million, an
increase of 44% over the same period in 2023.
Exports of kitchen furniture in July were worth US$136
million, 37% up on July 2023. The first seven months total
reached US$787.4 million, an increase of 31% year on
year.
Vietnam's W&WP imports in July 2024 were worth
US$262.6 million, up 13% compared to June 2024 and
38% compared to July 2023. Imports in the first sevenmonths reached US$1.52 billion, up 24% on the same
period in 2023.
Vietnam imported 38,400 cu.m of oak in July 2024, worth
US$22.3 million. That was up 13% in volume and 13% invalue compared to June 2024 and 39% and 56%
respectively on July 2023. In the first seven months of theyear, oak imports reached 207,900 cu.m, worth US$119.7
million, up 27% in volume and 33% in value over thesame period in 2023.
Imports of raw wood (logs and lumber) from the US in
July 2024 reached 73,000 cu.m, with a value of US$31.5
million.
This was an increase of 11% in volume and 14% in value
compared to June 2024 and took the total of raw wood
imports from the US in the first 7 months to 394,290 cu.m,
at a value of US$169.14 million. Volume and value wereboth up 29% on the same period in 2023.
Vietnam acts to boost timber sector

International market recovery resulted in the rise in
Vietnam’s timber export value in the year-to-date 2024.
However, the sector is expected to continue facing
external difficulties in ther last quarter of 2024 and nextyear.
According to the Department of Forestry of the Ministryof Agriculture and Rural Development, Vietnam’s export
value of timber and forestry products reached US$9.361
billion, up 21% over the same period last year andequivalent to 62% of the full-year target.
Trieu Van Luc, Deputy Head of the Forestry Department,
said the timber and forestry export target for 2024 is
US$15.2 billion, with timber and timber products
accounting for US$14.2 billion.
At the same time, he says Viet Nam’s timber sector faces
challenges. They include high interest rates across theglobal economy, geopolitical tensions undermining market
confidence and ‘commodity protection’ issues in key
export destinations.
Rising marine freight rates are also pushing up raw
materials prices, with some reporting increases of up to
40% against last year.

ITTO TTM Report: 28:16 16 – 31 August 2024

This will affect the prices of final products, at a time whenimporters are looking for reductions.
Against this backdrop, the Vietnamese industry’s growthrate for 2024 is projected to be 2.6% compared to 3% in
2023. Vietnam also has potential to expand international
market share, given it currently accounts for 6% of global
timber trade and, to support export trade generally, thegovernment has secured ‘many free trade agreements’.

These outcomes will provide valuable insights to present
to the Ministries of Industry and Trade, of Natural
Resources and Environment and of Agriculture and Rural
Development in later project phases, ‘facilitating learningfrom best practices and influencing the design andimplementation of net-zero enterprise support programs’states ILO.
See: https://www.ilo.org/resource/article/decarbonisation-newpriority-viet-nams-wood-processing-industry

See: https://en.nhandan.vn/vietnam-takes-active-measures-toboost-timber-exports-post138331.html
New procedures for forest leasing

A new decree has been issued introducing changes in theprocesses of forest leasing in Vietnam.
Decree 91/2024/ND-CP was promulgated on July 18,
2024, amending and supplementing several provisionsof Decree
156/2018/ND-CP,
which
detailstheimplementation of certain articles of the Law on Forestry.
A Clause within the Law amends and supplements aprevious Article regarding forest leasing.
See: https://lawnet.vn/thong-tin-phap-luat/en/legalcounselling/procedures-for-forest-leasing-in-vietnam-from-july18-2024-168689.html
Decarbonisation a priority for Vietnamese wood processing

With support from the International Labour Organisation(ILO) Productivity Ecosystems for Decent Work Viet
Nam team, efforts are underway to further enhanceawareness of the need for sustainable practices and topromote emission reduction best practices within the
Vietnamese wood processing sector.
ILO states many wood processing enterprises in Vietnam,
including those exporting to the EU market, have yet torecognise the opportunities and challenges of adopting
sustainable procedures. It cites lack awareness of theirenvironmental impacts and the benefits of greener
practices. Other obstacles include limited resources,
technologicalconstraints,
andregulatory
uncertainties. Until 2022 no domestic wood processing
enterprises in Vietnam had conducted a comprehensive
greenhouse gas (GHG) inventory or set clear GHG
reduction goals. Green transition, says the ILO, had beenminimally addressed in the sector's formal agenda.
In response, the organisation’s Productivity Ecosystems
for Decent Work Viet Nam team, in collaboration with the
Swiss Import Promotion Program (SIPPO), has organiseda programme of awareness-raising activities to enhancewood sector enterprises' understanding of new market
trends and the opportunities available through emission
reduction best practices.

Carbon credit opportunities opening for Vietnam

Carbon credits hold significant potential for theVietnamese forestry and wood sectors says a report on the
Vietnamese Chamber of Commerce and Industry WTO
and international trade news website.
According to Dr Vu Tan Phuong, Director of the Vietnam
Forest Certification Office (VFCO), from 2010-2020, theaverage annual net emissions in Vietnamese forestry werearound -40 million tonnes of CO2 equivalent. If converted
into monetary value, reducing 40 million tons of CO2 isequivalent to about VND3,500 billion, assessed on thebasis that reducing emissions by 1 tonne of CO2 isequivalent to US$5.
Recently, Vietnam also received more than US$51 million
from the World Bank from the transfer of more than 10
million forest carbon credits. That, says the website report,
shows that the interest of foreign organizations in carbon
projects in general and carbon projects from the woodindustry in particular in Vietnam is huge.
Currently, the Vietnamese government is developing adomestic carbon market with the promise of opening up
opportunities to buy, sell, exchange and trade carbon
credits between businesses and of promoting investment to
reduce greenhouse gas emissions and increasing carbon
absorption in forestry activities.
Meanwhile, a range of environmental goals have been set
for Vietnam’s forestry and timber sector to accomplish by2030. These include having 1 million hectares of forest
certified for sustainable forest management and ensuring
100% of wood and wood products for export and domestic
consumption derive from legal sources.
Dr. Vu Tan Phuong affirmed that, based on market
requirements, using certified wood materials will be themain trend in the coming years and that direct financial
benefits from carbon trading can be generated, if
businesses meet carbon market requirements.
See: https://wtocenter.vn/su-kien/24267-dual-benefits-for-thewood-industry-from-creating-carbon-credits

The ILO says initial achievements of the Productivity
Ecosystems for Decent Work project have laid foundations
to advance decarbonisation as a priority for wood sectoral
association partners, aiming to benefit over 100 enterprises
and reach over 10,000 workers within the sector.
10

ITTO TTM Report: 28:16 16 – 31 August 2024

BrazilPartnership to develop Forest+ Sustainable Plan

The Ministry of Agriculture and Livestock (MAPA) has
signed Protocols of Intent with four forestry sector
associations to strengthen the “Forest+ Sustainable Plan”(Plano Floresta+ Sustentável). They are the Paraná
Association of Forest-Based Companies (APRE), theBrazilian Association of Mechanically Processed Timber
Industry (ABIMCI), the Brazilian Tree Industry (IBÁ),and the Association of Reforesters of Mato Grosso(Arefloresta/MT).
The partnership aims to expand opportunities for foresters
while supporting the Forest+ Network, and promote
projects for the recovery of degraded areas, reforestation,and the development of the forest production chain. The
Forest+ Sustainable Plan aims to boost the development ofBrazil’s planted forest sector.
The associations emphasised the importance ofcollaboration with the government to promote sustainable
practices and strengthen the forest production chain.
ABIMCI said that through the National Planted Forest
Development Plan and the Forest+ Sustainable Plan,
MAPA has been representing the interests of the forestrybased production sector, which continues to groweconomically, adding both ‘preservation and productivity’.
See: https://www.gov.br/agricultura/ptbr/assuntos/noticias/mapa-formaliza-parceria-para-potencializaracoes-do-plano-floresta-sustentavel
Forest sector proposes measures to stimulate timberbusinesses

Representatives of the forest sector met with the governorof Mato Grosso, one of the main timber producer states in
the Amazon Region, to discuss the economic impact of thenational environmental agency´s strike and propose
measures to promote the timber industry. During themeeting, a joint plan was agreed for development andstrengthening of the sector's production chain. This
included organisation of international fairs and promotionof timber in civil construction, especially in public works.
CIPEM (Center of Timber Producers and Exporters of
Mato Grosso) suggested the creation of a timber-based
homes programme for low-income families as a solution
to the housing deficit.
See: https://cipem.org.br/noticias/setor-florestal-propoe-aogovernador-acoes-de-fomento-as-industrias
Export update

Brazilian exports of wood-based products (except pulp andpaper) were up 9.9% in July on the same month in 2023,
from US$278.3 million to US$305.7 million.
Pine sawnwood exports increased 33.7% in value from
US$40.1 million in July 2023 to US$53.6 million in June
2024. In volume, exports were up 31.8%, from173,500cu.m to 228,700 cu.m.
11Tropical sawnwood exports decreased 5.3% in volume,from 26,400 cu.m in July 2023 to 25,000 cu.m in July
2024. In value, exports decreased 14.9% from US$ 13.4
million to US$ 11.4 million.
Pine plywood exports increased 13.8% in value to US$
59.2 million in July 2024 compared to US$ 52.0 million in
July 2023. In volume, exports increased 6.8% from159,900 cu.m to 170,800 cu.m..
Tropical plywood, exports decreased 35.3% in value and34.5% in volume, from US$1.7 million and 2,900 cu.m in
July 2023 to US$1.1 million and 1,900 cu.m in July 2024.
Wooden furniture export value increased 2.3% from
US$47.5 million in July 2023 to US$48.6 million.
Timber sector export stability in first half of year

Brazil’s timber product exports remained stable during thefirst half of 2024, although June stood out,showing an 8%
volume decrease compared to the previous month. Despite
logistical challenges faced total export value reached
US$164.7 million, a reduction of only 2% compared toMay.
When comparing data from the second quarter of 2024with the same period last year volumes and values wererelatively stable with a difference of -8% in volume and
1% in value.
Compared to the same period in 2023 there was a 17%
increase in export value, driven by the appreciation of the
US dollar. Among the main products exported in June
2024 were softwood sawnwood (42%) and softwood
plywood (38%), followed by hardwood logs (14%).
Timber sector companies reported stability in orders,
although they continue to face logistical and production
cost challenges.
See: https://www.woodflow.com.br/blog/madeira-exportacoesmes-a-mes-mostram-estabilidade-no-primeiro-semestre-de-2024
Native forest restoration gets German and EU support

The National Bank for Economic and Social Development(BNDES) and Germany announced the award ofapproximately R$88 million/€15 million) for the Amazon
Fund, through German state-owned investment anddevelopment bank, KfW.
With this, Germany has become Brazil's first international
partner in the ‘Floresta Viva Program’, aimed at ecologicalrestoration of Brazilian biomes. The initiative supports
implementation of projects focused on increasing
vegetation cover with native species, from seed collection
to forest nursery and planting programmes.
The German government's funds add to contributions ofother Amazon Fund donors, including Norway,
Switzerland, the US and Japan and Petrobras. Funds arealso set to be disbursed by the UK.

ITTO TTM Report: 28:16 16 – 31 August 2024

In addition, the European Union signed a letter of intent toformalize donation of €20 million to the Amazon Fund,which is the world's largest REDD+ instrument, for
reducing emissions from deforestation and forest
degradation.
The Fund, which has about R$3.9 billion in resources,
supports 114 projects, ranging from Restoration Arc (thelargest natural forest restoration project), to a programme
to strengthen the Fire Department´s efforts in combatingorganized crime in the region.
BNDES emphasized the importance of preserving the
Amazon, which represents 25% of the world's tropicalforest cover and is home to approximately 29 million
people.

Export prices

Average FOB prices Belém/PA, Paranaguá/PR,
Navegantes/SC and Itajaí/SC Ports.
Export sawnwood prices
Sawnwood

US$ per cu.m

Ipe
JatobaMassaranduba
Muiracatiara

2,528
1,349
1,331
1,354

Pine (KD)193

Prices do not include taxes. Source: STCP Data Bank
Export plywood prices
Pine plywood
9mm C/CC (WBP)
12mm C/CC (WBP)
15mm C/CC (WBP)
18mm C/CC (WBP)

US$ per cu.m
367
320
303
301

Prices do not include taxes. Source: STCP Data Bank
See: https://agenciagov.ebc.com.br/noticias/202407/governoalemao-libera-mais-recursos-ao-fundo-amazonia-e-se-torna-1odoador-internacional-do-floresta-viva

Decking Boards

Domestic log prices
Brazilian logs, mill yard, domesticIpêJatobaMassaranduba
Miiracatiara
Angelim Vermelho
Mixed redwood and white woods

US$ per cu.m
492
208
184
178
180
137

Prices do not include taxes. Source STCP Data Bank
Domestic sawnwood prices
Brazil sawnwood, domestic (Green ex-mill)
Ipé
JatobaMassaranduba
Muiracatiara
Angelim Vermelho
Mixed red and white
Eucalyptus (AD)Pine (AD)Pine (KD)US$ per cu.m
1,864
970
844
872
842
561
316
258
299

Prices do not include taxes. Source: STCP Data Bank
Domestic plywood prices
Parica ex-mill
4mm WBP10mm WBP
15mm WBP
4mm MR.
10mm MR.
15mm MR.

US$ per cu.m
644
513
441
598
435
389

Prices do not include taxes. Source: STCP Data Bank
Prices for other panel products
Domestic ex-mill prices
15mm MDParticleboard
15mm MDFibreboard

Export prices for added value products
Added value product

US$ per cu.m304
312

Prices do not include taxes. Source: STCP Data BankIpê
JatobaUS$ per cu.m
3,205
1,810

Prices do not include taxes. Source: STCP Data Bank

Peru
Exports continue to decline

Shipments of wood products in the first 5 months of 2024
totalled US$ 34.9 million, a drop of 25% compared to thesame period in 2023 (US$46.2 million) according to theManagement of Services and Extractive Industries of the
Association of Exporters (ADEX). This contraction ispartly explained by the lower orders from China and theEU.
During these first five months France was the main export
market with a share of 16%, however, shipments were
down 43% compared to the same period in 2023. The
United States is in second place with a 15% share but forthis market shipments rose sharply. The Dominican
Republic and China were in third and fourth place with ashare of 15% each but exports to the Dominican Republic
were down.
According to figures from the ADEX Data Trade
Commercial Intelligence System, sawn wood was the mosttraded wood product in wood exports in the first fivemonths of 2024, earning US$13.4 million, despite having
contracted 26% year on year. The second most tradedproducts were semi-manufactured products that reached
US$ 12.7 million but shipmentwere down 37%. Other
products were for construction (US$2.2 million), firewood
and charcoal (US$1.9 million) and furniture and its parts(US$1.7 million).
Low rainfall and reduced humidity – fire risk rises

In the third week of August 2024 six forest fires werereported in Ucayali. The National Meteorological andHydrographic Service (SENAMHI) warned that low
rainfall, reduced humidity, increases in daytime
temperatures and industrial or agricultural activities werethe main factors resulting in forest fires.
12

ITTO TTM Report: 28:16 16 – 31 August 2024

The Regional Forest and Wildlife Management of Ucayali(GERFFS-Ucaya¬li) indicated that SERFOR reported 611
hot spots in the region between 20 August 20 and 22
August. 326 hot spots were identified in the Province ofCoronel Portillo, 114 hot spots in the Province of Padre
Abad and 171 hot spots in the Province of Atalaya.

Export sawnwood prices

Virola 1-2" thick, length 6”-12” KD
Grade 1, Mexican market
Grade 2, Mexican market

582-602527-541

Promoting the wood value chain

Cumaru 4" thick, 6”-11” length KD
Central American market
Asian market

1,009-1,,029
1.004-1,047

Ishpingo (oak) 2" thick, 6”-8” length
Spanish market
Dominican Republic

641-654755-799

Marupa 1”, 6-11 length KD
Grade 1 Asian market

559-572

In order to promote the trade of legally harvested forest
products and support sustainable economic activities the
National Forest and Wildlife Service (SERFOR) develops
technological tools to guarantee traceability in the supply
chain.
Speaking at the plenary session of the Expert Group on
Illegal Logging and Associated Trade (EGILAT) of the
Asia-Pacific Economic Cooperation Forum (APEC) 2024,
Nelly Paredes del Castillo, Executive Director of SERFOR
is reported as saying “we focus on giving productive value
to our forests, adopting a preventive approach against
illegal logging and promoting legal trade in forest
resources from managed forests, framed in a clear andtransparent traceability mechanism that accredits the legal
origin of our timber resources, contributing to thesustainable development of our region”
She highlighted the implementation of the 32 strategic
checkpoints of mandatory passage located on the maintransport routes in Peru, including border areas, in order tocarry out permanent control of the flow of wood.
She also highlighted the innovations in the Remote Forest
Monitoring System, in conjunction with theEnvironmental and Fire Alert System, which allows forconstant monitoring and rapid response to any impact onforest ecosystems.
Export prices for added value products
US$ per cu.m
Strips for parquet Cabreuva/estoraque
KD12% S4S, Asian market
Cumaru KD, S4S Swedish market
Asian market

1327-1398
979-1011
1079-1098

Cumaru decking, AD, S4S E4S,
Central American market

994-018

Pumaquiro KD Gr. 1, C&B, Mexican market

479-554

Quinilla KD, S4S 2x10x62cm, Asian market

591-627

2x13x75cm, Asian market

774-831

Export veneer prices
Veneer FOB Callao port

US$ per Cu.m

Lupuna 3/Btr 2.5mm

221-249

Lupuna 2/Btr 4.2mm

234-266

Lupuna 3/Btr 1.5mm

219-228

13

Peru sawnwood, FOB Callao Port
Pumaquiro 25-50mm AD
Mexican market

US$ per cu.m695-716

Domestic prices for other panel products
Peru, domestic particleboard
US$ per cu.m
1.83m x 2.44m x 4mm
282
1.83m x 2.44m x 6mm
230
1.83m x 2.44m x 12mm
204
Export plywood prices
Peru plywood, FOB Callao (Mexican
market)Copaiba, 2 faces sanded, B/C, 8mm
Virola, 2 faces sanded, B/C, 5.2mm

US$ per cu.m
349-379487-511

Cedar fissilis, 2 faces sanded, 5.5mm

766-783

Lupuna, treated, 2 faces sanded, 5.2mm
Lupuna plywood
B/C 15mm

396-419

B/C 9mm379-399

B/C 12mm
B/C 8mm
C/C 4mmLupuna plywood B/C 4mm Central Am.

350-360
466-487389-425391-407

Domestic sawnwood prices
Peru sawnwood, domestic
Mahogany
Virola449-495

US$ per cu.m222-234

Spanish Cedar

333-344

Marupa (simarouba)

192-227

Domestic plywood prices (excl. taxes)
Iquitos mills
122 x 244 x 4mm
122 x 244 x 6mm
122 x 244 x 8mm
122 x 244 x 12mm
Pucallpa mills
122 x 244 x 4mm
122 x 244 x 6mm
122 x 244 x 8mm
122 x 244 x 8mm

ITTO TTM Report: 28:16 16 – 31 August 2024

US$ per cu.m
512
519
522
528
503
511
516
521

JapanRise in personal consumption lifts growth

Japan's economy expanded at a much faster-than-expectedannualised 3.1% in the second quarter, rebounding from aslump at the start of the year. Capital investment increased
by 0.9 percent, and housing investment was up by 1.6%.
The improvement was attributed to a rise in personal
consumption and the suggestion that another interest rateincrease is likely.
The Bank of Japan had forecast that a solid economic
recovery will help address inflation and justify raisinginterest rates further.

Analysts estimate that each 1 yen appreciation in theJapanese currency against the dollar could reduce profits
by up to 0.6%.
See:
https://www.japantimes.co.jp/business/2024/08/22/companies/yen-rise-hampers-japan-firm-growth/
Typhoon No.10 inflicts serious damage

Torrential rain in late August caused serious flooding inmany areas. The Meteorological Agency issued warnings
for Tokyo and surrounding areas as unstable atmosphericconditions hit the region. Known colloquially in Japan as‘guerrilla rainstorms’ these are localised heavy downpours
occurring suddenly and are difficult to predict.

See: https://www3.nhk.or.jp/nhkworld/en/news/20240815_07/
Second quarter machinery orders disappoint

The total value of machinery orders received by 280
manufacturers operating in Japan decreased by 6% in Junefrom the previous month however, in the April-June
period there was a 7.4% quarter on quarter rise.
Private-sector machinery orders, excluding volatile ones
for ships and those from electric power companies,
increased by 21% in June but showed decreased by 0.1%
in April-June period.
The Cabinet Office maintained its assessment that there
has not been a significant rise in machinery orders as coremachinery orders from manufacturers shrank reflecting adecrease in orders for semiconductor production
equipment. In the July-September period machinery orders
were forecast to decrease by 4% and private-sector orders,
excluding volatile ones, are forecast to increase slightly
from the previous quarter.

At the end of August Japan was bracing for what is likely
to be the strongest typhoon to make landfall. Winds of up
to 250 km/hour were forecast and serious damage toproperty has been reported.
Little change in consumer confidence index

The Cabinet Office has reported the seasonally adjusted
consumer confidence index was 36.7 in August, almost
unchanged from the previous month.
The income growth indicator was down to 39.7 while theoverall livelihood index moved up to 34.7. In contrast theemployment index weakened but the willingness to buy
durable goods rose slightly.

Data source: Cabinet Office, Japan
Yen appreciation continues

Companies report record profit – outlook uncertain

Japanese companies have just posted record quarterly
profits but the yen’s rebound is fueling worries about just
how sustainable their earnings growth will be amid weak
demand in China and the risk of a slowing US economy.
The outlook is uncertain, however, as the strengthening
yen will dent export growth.
14

The yen appreciated in the last half of August driven by
hawkish sentiments by a variety of officials, some fromthe Bank of Japan (BoJ). An additional factor could havebeen the ‘safe-haven’ flows amid rising geopoliticaltensions.
See: https://www.fxstreet.com/news/japanese-yen-rises-due-toincreasing-odds-of-a-further-boj-rate-hike-202408190401

ITTO TTM Report: 28:16 16 – 31 August 2024

The Tokyo International Conference on African
Development concluded with the adoption of TICAD’s
first joint communique which also includes the need tocreate a supportive environment for startups to promote
investment in Africa. The meeting served as a preparatory
step for the 9th TICAD summit scheduled to be held in
Yokohama next August.
See: https://www.mofa.go.jp/files/100715925.pdf
Import update
Assembled wooden flooring imports

Data source: WSJ
Suggestion of two more interest rate increases

In an interview the Head of Mizuho Financial Group Bank
suggested the Bank of Japan (BoJ) could hike interest rates
twice by the end of March 2025 to reach 0.5%, reflecting asustained growth in the Japanese economy. This would
have an impact on commercial bank lending rates and willaffect mortgage holders.
However, the Chief Executive Officer of Mizuho Bank isrepoted as saying “rate hikes won't be a tool to arrest the
weakening yen, which has plunged to a 38-year low
against the dollar,”
The BoJ ended negative interest rates after eight years in
March this year but there is no concensus amongst
analysts when another interest rate will be announced.
See: https://asia.nikkei.com/Business/Finance/Japanese-bankslending-rates-rise-for-7th-straight-month

Data source: Ministry of Land, Infrastructure, Transport andTourism, Japan
International Conference on African Development

Ministers from African nations and Japan meet in Tokyoand pledged to collaborate on finding solutions to climatechange and other global challenges. Ministers and otherrepresentatives from Japan and 47 of African’s 54
countries attended the meeting in Tokyo.

15

After two consecutive monthly declines the value ofJapan’s wooden flooring (HS441871-79) imports roseslightly in June but with the yen at around 115 to the US
dollar in June the uptick in imports was of little
significance. In the first quarter of this year the month on
month value of imports was rising faster than the pace ofyen depreciation signaling the import volumes were rising.
That changed in the second quarter.
Despite the erratic trend in the value of imports during thefirst half of this year compared to June 2023 imports, theperformance in June 2024 was average and month on
month June 2024 imports were around 12% higher.
As in previous months the main category of assembled
flooring imports was HS441875, accounting for 76% of
the total value of assembled flooring imports, up from the
68% in May. The second largest category in terms of value
was HS441879 followed by HS 441874.
Shippers in China accounted for almost 70% of Japan’s
imports of assembled wooden flooring in June withshippers in Vietnam accounting for another 15%. Of thebalance shippers in Thailand and Austria did well in June

Data source: Ministry of Finance, Japan
Plywood imports

Year on year, the volume of June plywood imports(441210-39) was 121,846 cu.m up over 25% from thevolume recorded for June 2023 and month on month there
was an 12% increase in the volume of imports. Shippers inIndonesia and China recorded a month on month increasein volumes dispatched, June arrivals from Malaysia wereat around the same level as in May while shipments from
Vietnam dropped in June from a month earlier.

ITTO TTM Report: 28:16 16 – 31 August 2024

Of the various categories of plywood imported, 87% was
HS441231 in June with HS441233 and HS441234 eachaccounting for around 5% of the balance. The four main
shippers of plywood to Japan; Indonesia, Malaysia,
Vietnam and China consistently account for over 90% of
plywood imports. Other shippers appearing in Japan’s
plywood import statistics in June were Finland, Latvia,
Taiwan P.o.C and New Zealand.

2023

2024

Jan

13.7

40.3

49.2

19.4

Feb

7.8

44.9

40.6

12.9

Mar

14.9

29.8

45.3

14.3

Apr

13.8

28.7

46.3

14.6

May

14.0

47.7

34.2

12.6

Jun

10.7

36.9

37.2

12.7

Jul

10.6

38.8

43.1

12.9

Aug

10.6

49.6

38.1

15.7

Sep

12.3

63.4

52.4

12.0

Sep

10.5

46.1

50.3

17.2

Nov

11.9

63.6

53.0

16.8

Dec

12.1

43.5

54.0

17.7

Jan

13.3

50.2

52.3

20.5

Feb

11.5

45.4

55.3

17.1

Mar

9.4

50.1

48.8

12.2

Apr

13.2

43.2

49.0

17.0

May

8.4

48.3

36.5

14.3

May

10.1

51

46.1

13.7

Trade news from the Japan Lumber Reports (JLR)

Data source: Ministry of Finance, Japan
Main sources of Japan’s plywood imports (000’s cu.m)
China
2021

2022

16

Malaysia

Indonesia

Vietnam

Jan

9.7

76.9

59.3

15.7

Feb

6.8

53.5

50.1

13.0

Mar

5.7

89.4

61.5

11.5

Apr

11.4

65.9

58.2

17.3

May

10.3

72.0

51.0

13.0

Jun

10.5

61.9

56.6

15.6

Jul

11.8

74.1

57.1

16.4

Aug

12.8

54.7

57.8

17.5

Sep

16.0

61.8

60.4

21.8

Oct

12.6

72.8

60.4

22.5

Nov

14.6

60.6

66.0

21.8

Dec

13.6

51.2

76.5

21.0

Jan

15.9

78.6

73.9

16.8

Feb

14.7

61.0

56.8

11.4

Mar

13.7

71.0

76.9

8.8

Apr

25.0

79.3

72.0

13.1

May

32.2

67.6

68.2

12.9

Jun

37.5

61.4

52.4

18.4

Jul

27.7

70.6

67.8

15.2

Aug

19.0

63.0

70.8

18.5

Sep

16.5

58.4

60.4

16.2

Oct

13.4

39.2

65.5

17.1

Nov

13.1

45.1

50.1

15.9

Dec

13.9

49.2

47.1

21.6

The Japan Lumber Reports (JLR), a subscription trade
journal published every two weeks in English, isgenerously allowing the ITTO Tropical Timber Market
Report to reproduce news on the Japanese market
precisely as it appears in the JLR.
For the JLR report please see:https://jfpj.jp/japan_lumber_reports/
Decline in price of PKS

The price of PKS (palm kernel shells) continues falling inIndonesia. The spot price of authenticated Indonesian PKS
was US$136, FOB per tonne, in January, 2024. However,the price declined to US$133, FOB per tonne, in February
2024 and declined to US$130, FOB per tonne, in March,2024. In May, 2024, the price was USUS$119, FOB per
tonne. Then, the authenticated Indonesian PKS was
USUS$110 – 115, FOB per tonne, in June, 2024. Now, theprice is USUS$90 – 95, FOB per tonne.
A reason for a decline in the price of PKS is that huge
wooden biomass power plants, which consume imported
PKS or wooden pellets in Japan, postpone their operations
due to adjusting equipment. Moreover, there was a fire at
one of huge wooden biomass power plants and theoperation has been stopped. As a result, demand for PKS
has been stagnant.
There are not a lot of new orders for PKS because somewooden biomass power plants get PKS from the inventoryin Japan or PKS from a demurrage vessel on the sea. In
Indonesia, it is the season to harvest palm oil and there area lot of PKS. There had been a concern about the third
party certification but auditing organizations have been
increased for the third party certification so the concern issolved. Therefore, supply of authenticated PKS will
increase.

ITTO TTM Report: 28:16 16 – 31 August 2024

The spot price of wooden pellets in Vietnam is
USUS$120, FOB per tonne. This price has beenunchanged and this is the reason that the price of PKS has
not rose because calorie consumption of PKS is low.
North American logs

North American log and lumber markets are not good.
Douglas fir lumber manufacturers in Japan do notpurchase a lot of Douglas fir logs due to low demand.
The arrival volume of Douglas fir logs at the first half of
this year is 14.2 % less than the same period last year.
However, lumber manufacturers in Japan reduce
production so there is a certain amount of Doulgas fir logs
at distributors’ inventory. It is hard to predict that demandfor Douglas fir logs would recover or not. If the yen kept
appreciating against the US dollar in August, 2024, there
would be a possibility that Japanese buyers buy Doulgas
fir logs.
There are often fires occurring at mountains in North
America and there are concerns about a shortage of
Douglas fir logs. However, Japanese buyers still do notorder because Douglas fir logs due to low demand.
The orders to precutting companies in Japan have been
increasing in July and August, 2024. It seems that demandfor houses recovers slightly but it is not for sure because
there is no schedule to produce lumber after September,
2024. As a result, the precutting companies also do notpurchase a lot of North American logs. Consumers
stopped buying domestic small sized lumber instead of
Douglas fir small sized lumber. However, it is still
difficult to sell Douglas fir small sized lumber due to low
demand.
Some Japanese wholesalers expect that the purchasing cost
would decline because the yen appreciated against the US
dollar. However, the influence of strong yen would not be
big because the yen had depreciated widely. A recovery of
demand after September, 2024 would be the focus forsales.

Demand for crating, which is made of radiata pine, islower than May, 2024 in July and August, 2024.
There was a long holiday in May, 2024.It is popular to use
recycled pallets as eco-friendly so consumption of lumber
is decreasing.
Plywood
Movement of domestic structural softwood plywood is notgood because the starts are decreasing. Some plywood
manufacturers and distributors offer to raise the price inAugust, 2024 and there were last-minute requests forplywood before the holiday in the middle of August.
The price of 12 mm 3 x 6 domestic structural softwood
plywood was around 1,180 yen at the end of July in Tokyo
metropolitan area.
Movement of imported South Sea plywood, especiallypainted plywood for concrete form, is dull. The yen was
160 yen against the US dollar until the beginning of Julyand the yen appreciated to around 146 yen at the end of
August. At the end of July, the price of 2.4 mm 3 x 6
plywood was raised by about US$10, C&F per cbm.
In South Asia, 12 mm 3 x 6 painted plywood for concrete
form is around US$600, C&F per cbm. Plywood form isaround US$510, C&F per cbm. Structural plywood isaround US$520, C&F per cbm. 2.4 mm 3 x 6 plywood isaround US$950, C&F per cbm. 3. 7is around US$880,
C&F per cbm. 5.2 mm is around US$850, C&F per cbm.
On the other hand, the price of South Sea plywood inJapan is deadlocked now. In Tokyo metropolitan area, 2.5mm plywood is 780 yen, delivered per sheet. 4 mm
plywood is 1,000 yen, delivered per sheet. 5.5 mm
plywood is 1,170 – 1,200 yen, delivered per sheet.
Structural plywood is 1,650 yen, delivered per sheet. 12mm 3 x 6 painted plywood for concrete form is around
1,950 yen, delivered per sheet. Plywood form is 1,750 yen,delivered per sheet.
South Sea log and products

Radiata pine logs and lumber

Major Japanese wholesalers raised the price of Chilean
radiata pine lumber by 3,000 yen, FOB per cbm as ofAugust, 2024 because the yen was nearly 160 yen against
the US dollar.
The price of Chilean radiata pine thin board used to costaround 57,000 yen, FOB per cbm and now it costs 60,000
yen in Kanto region. The price of Chilean radiata pine thinboard in Chubu region and Kinki region will be raised in
the future.
The import cost for NZ radiata pine logs shipped from NZ
to Japan in June, 2024 is high because the yen was nearly
160 yen against the US dollar and also the price of NZ
radiata pine logs in NZ was US$8, C&F per cbm
increased. The import cost is almost same as Chilean
lumber. However, the price of NZ radiata pine logs isunchanged so far.
17

A number of inquiries for South Sea lumber and Chinese
lumber has been increasing slightly. Demand is not a lot
but distributors have to purchase South Sea lumber or
Chinese lumber because they do not have enoughinventories. Some distributors purchased a certain amountof South Sea lumber or Chinese lumber as the yen
appreciated to 140 yen against the US dollar.
There is a lot of inquiries for South Sea lumber to produce
truck bodies. Large laminated boards made of Chinese redpine and of Indonesian Merkus pine are leveled off fromthe previous month. The prices of South Sea and Chinese
lumber are unchanged from last month in Japan. Demandand supply for South Sea logs are balanced. Demand forblocks for steel and shipbuilding is stable and for truck
bodies is firm.

ITTO TTM Report: 28:16 16 – 31 August 2024

In Malaysia, plywood manufacturers have been reducing
production and there are not enough logs. The weather in
Papua New Guinea is bad so it is difficult to predict when
the logs will be collected enough.
Period for carrying out of logs extended

The Ministry of Agriculture, Forestry and Fisheries will
extend a period for carrying out standing trees which arecontracted to be carried out this yea, and this is to control
the supply of National Forest’s lumber. One year will be
extended for free. This is a precautionary measure for
eased demand and supply. Also, The Ministry ofAgriculture, Forestry and Fisheries launches the sales
system to control supplying logs in wide areas.
National Forest lumber occupies about 15 % of domestic
lumber supply. The Ministry of Agriculture, Forestry and
Fisheries supplies logs and standing trees and focuses oncontrolling the supplying of standing trees this time.
Normally, the period for carrying out the standing trees isthree years and there will be a fine when it is overdue.
Buyers are able to decide about the fine.
To find a new way of supplying logs, The Ministry ofAgriculture, Forestry and Fisheries will launch a new
system at Regional Forest Office in Hokkaido Prefecture
and Tohoku region. A reason for launching a new system
is to help other areas’ Regional Forest Office, when its
demand and supply for logs were eased extremely.
An estimate of supply for logs in 2023 is 3,160,000 cbms,
13.3 % more than 2022 and for standing trees in 2023 is
1,840,000 cbms, 5.7 % more than 2022. Total supply forlogs and standing trees in 2023 were 5,000,000 cbms, 10.4
% up from the previous year.
Supply for logs in 2024 will be 3,430,000 cbms, 5.5 %more than last year and for standing in this year will be
9,160,000 cbms, 2.1 % more than the previous year.
China
Real estate investment down over 10%

China’s National Bureau of Statistics has, in a press
release, reported that in the period January to July 2024,
investment in real estate development decreased year on
year by 10% and investment in residential buildings was
down by 11%.
In the same period the floor space of real estate underconstruction was down by 12% year on year and forresidential buildings it was down around 13%.
The floor space of newly started buildings was down by
23%, of which floor space of newly started residentialbuildings was down by 24%. The floor space of completedbuildings was down by 22% of which the floor space ofresidential buildings was also down by 22%.

According to China Customs data, in the first half of 2024
China’s sawnwood imports totalled 13.96 million cu.m,
worth US$3.588 billion, down 2% both in volume and invalue. CIF prices for sawnwood imports rose 0.5% slightly
to US$257/cu.m compared to the same period of 2023.
Of total sawnwood imports, sawn softwood imports fell
6% to 8.87 million cu.m, accounting for 64% of thenational total, down 2 percentage points over the same
period of 2023. The CIF prices for sawn softwood importsrose 0.8% to US$205/cu.m over the same period of 2023.
Sawn hardwood imports grew 5% to 5.09 million cu.m.
CIF prices for sawn hardwood imports dropped 3% to
US$348/cu.m over the same period of 2023.
Of total sawn hardwood imports, tropical sawnwood
imports were 3.69 million cu.m valued at US$1.077
billion, up 16% in volume and 18% in value andaccounting for about 26% of the national total. CIF prices
for tropical sawnwood grew 2% to US$292/cu.m over thesame period of 2023.
China’s sawnwood imports, first half 2024 (Vol,)
YoY(mil. cu.m)% change

Total sawnwood imports

13.96

-2%

Sawn softwood

8.87

-6%

All sawn hardwood

5.09

5%

(of which tropical)(3.69)(16%)

Data source: China Customs
China’s sawnwood imports, first half 2024 (Value)
YoY
US$ billion% change

Total sawnwood imports

3.588

-2%

Sawn softwood

1.819

-6%

All sawn hardwood

1.769

2%

(of which tropical)(1.077)(18%)

Data source: China Customs
Average sawnwood CIF prices, first half 2024
YoY
US$/cu.m% change

Total sawnwood imports

257

0.5%

Sawn softwood

205

0.8%

All sawn hardwood

348

-3%

(of which tropical)

(292)

(2%)

Data source: China Customs

The main reasons for the decrease in China’s sawnwood
imports mainly resulted from the slump in constructionindustry which has weakened China's overall demand forimported timber.
ITTO TTM Report: 28:16 16 – 31 August 2024

See:
https://www.stats.gov.cn/english/PressRelease/202408/t2024082
2_1956035.html

18

Slight decline in total sawnwood imports

A seasonal slowdown caused by the rainy season insouthern China also contributed to slower overall timberdemand. China’s sawnwood imports from its lead
suppliers, reduced generally in the first half of 2024,
especially from the largest, Russia.

Jump in sawn softwood imports from US

In the first half of 2024, China’s sawn softwood imports
from the USA rose 38% to 111,000 cu.m, accounting for1.3% of the national total sawnwood imports. This did not,have much affect on the overall trend of decline in the
total sawn softwood imports in the first half of 2024.

Imports from Russia down 4%

Russia remains the largest supplier of sawnwood to China
and imports in the first half of 2024 accounted for 65% of
the total. However, Russian imports fell 4% to 6.242
million cu.m and contributed to the downturn in China’s
overall total sawnwood imports.
At the same time, China’s sawnwood imports from themain supply countries also decreased and at a faster pace,in the first half. Imports from Canada, USA, Finland,
Germany, Philippines and Sweden dropped 8%, 18%,
27%, 31%, 15% and 44% respectively over the same
period compared to 2023. In contrast, China’s sawnwood
imports from Thailand, Belarus and Gabon rose 21%, 44%
and 58% respectively.

Total

000s
cu.m

YoY
% change-6%

Russia5,760-2%

Canada678-7%Belarus620

44%

Finland

377

-27%

-2%

Germany

317

-33%

%
change13,959Main
Suppliers

8,873

YoY

000s
cu.m

Main countries shipping sawn softwood to China,
first half 2024 (Volume)

Total

Main countries shipping sawnwood to China,
first half 2024 (Volume)
Main
Suppliers

In the first six months China’s total sawnwood imports
from USA totaled 596,000 cu.m, down 18% over the same
period in 2023. This decrease in the overall sawnwood
total is because of the decline in China’s sawn hardwood
imports from USA. 80% of China’s sawnwood imports
from USA are of sawn hardwood and these fell 25% to484,000 cu.m in the first half of 2024.

Russia6,242-4%

Sweden291-44%

Thailand

2,501

21%

Chile

148

-32%

Canada708-8%

Brazil127-5%Belarus

620

44%

USA

111

38%

USA

596

-18%

Gabon

407

58%

Finland377-27%

Germany

360-31%Philippines

310

-15%

Sweden291-44%Data source: China Customs
Main countries shipping sawn hardwood to China,
first half of 2024 (Volume)
Main
Suppliers

Data source: China Customs
Main countries shipping sawnwood to China,
first half 2024 (Value)

YoY
000s
cu.m

% change

Total

5,086

5%

Thailand

2,501

21%

USA

484

-25%

Main
Suppliers

YoY

Russia481-21%

US$ mil.

%change

Gabon

407

58%

Total

3,588

-2%

Philippines

310

-15%

Myanmar148

10%

Romania75-13%Vietnam73

19%

Cameroon

69

1%

65

52%

Russia1,348-1%Thailand633

26%

Canada141-12%

Belarus

117

34%

USA

363

-21%

Malaysia

Gabon

148

49%

Data source: China Customs

Finland84-26%

Germany

80-33%Philippines

23

-17%

Sweden61-44%

Data source: China Customs

19

ITTO TTM Report: 28:16 16 – 31 August 2024

Main countries shipping sawn hardwood to China,
first half 2024 (Value)
Main
Suppliers

YoY
US$ mil.
% change

Main countries shipping tropical sawnwood to China,
first half 2024 (Volume)
Main
Suppliers

YoY

000s
cu.m

% change

Total

1,769

2%

Total

3,695

16%

Thailand633

26%

Thailand

2,494

20%

USA

345

-22%

Gabon

402

59%

Russia138-14%Philippines

308

-15%

Gabon

148

49%

Myanmar143

8%Philippines

23

-17%

Cameroon69

1%

Myanmar101

22%

Malaysia

63

52%

Romania

36-20%

Indonesia

40

-17%

Vietnam

33

17%

Rep.
Congo

29

6%

Cameroon

34

-1%

Laos

20

-34%

Malaysia

23

45%

PNG

19

-45%

Data source: China Customs

Data source: China Customs

Tropical sawnwood imports rise

Main countries shipping tropical sawnwood to China,
first half 2024 (Value)

China’s tropical sawnwood imports in the first half of2024 reached 3.69 million cu.m, worth US$1.077 million,
an increase of 16% in volume and 18% in value on thesame period of 2023. They accounted for about 26% of its
national sawnwood import total for the six months. CIF
prices for tropical sawnwood grew 2% to US$292 per
cu.m compared to 2023.
Thailand has been China’s largest tropical sawnwood
supplier for many years. In the first half of 2024 its
shipments to China rose 20% in volume over the same
period in 2023 to 2.49 million cu.m and 25% in value toUS$631 million. They accounted for 68% of China’s total
tropical sawnwood imports, an increase in share of 4%
over 2023. The CIF price for China’s tropical sawnwood
imports from Thailand was US$253 per cu.m, up 4%.
Surge in tropical sawnwood imports from Gabon

Gabon’s tropical sawnwood exports to China rose sharply
in the first half of 2024, making it the country’s second
largest supplier, ahead of the Philippines in third place.

Main
Suppliers

YoY
mil US$% change

Total

1.077

18%

Thailand

631

25%

Gabon

146

50%

Philippines

23

-18%

Myanmar

99

21%

Cameroon

34-1%

Malaysia

22

49%

Indonesia

24

-26%

Rep.
Congo

14

16%

Laos

21

-38%

PNG

5

-53%

Data source: China Customs
Imported tropical sawnwood CIF prices rise marginally

The two countries accounted for for 11% and 8% ofChina’s total tropical sawnwood imports respectively inthe period. Imports from Gabon were up 59% to 402,000
cu.m and the Philippines’ 15% to 308,000 cu.m.
China’s top 10 countries tropical sawnwood suppliers
provided 97% of its total first half imports, namely
Thailand (68%), Gabon (11%), Philippines (8%),
Myanmar (4%), Cameroon (1.9%), Malaysia (1.7%),
Indonesia (1.1%), the Republic of Congo (0.8%), Laos
(0.55%) and PNG (0.51%).

20

Average CIF prices for China’s tropical sawnwood
imports rose 2% to US$292/cu.m in the first half of 2024.
CIF prices for tropical sawnwood from Thailand, thePhilippines and the Republic of Congo grew 4%, 12% and
9% respectively. In contrast, CIF prices for most of
China’s other lead tropical sawnwood suppliers declined at
different rates over the same period in 2023. The pricedecrease of imports from PNG was largest, down 16%.

ITTO TTM Report: 28:16 16 – 31 August 2024

Average CIF prices from main sawnwood suppliers,
First half 2024
Main
Suppliers

YoYUS$
per cu.m% change

Total

292

2%

Thailand

253

4%

Gabon

363

-6%

Philippines

74

-3%

Myanmar691

12%

Cameroon

492-1%

Malaysia349-6%

Indonesia

606

-9%

Rep.
Congo

469

9%

Laos

1026

-2%

PNG

271

-16%

However, China's demand for tropical sawnwood had
increased significantly. For example, from January to May
2024, China’s import volume of sapelli sawnwood surged
to 45,000 cu.m, a 1.5 times increase compared to the same
period last year.
In terms of freight, with new routes and new shipping
capacity coming on stream, the shipping rates of several
routes departing from China began to show a declining
trend in July.
On July 21, states the GTI report, China, South Africa,
Brazil, and India jointly held the 2024 BASIC Ministerial
Meeting on Climate Change in Hubei Province, China.
The Ministerial Joint Statement on Climate Change
released at the meeting called on developed countries to
end trade distorting subsidies, including those in the
agricultural, forest and energy sectors as they adversely
impact sustainable development in developing countries.

Data source: China Customs
GTI-China Index down in JulyIn July, the GTI-China Index registered 43.5%, a decreaseof 3.2 percentage points from June, according to the latest
Global Timber Index report. The further drop meant theindex was below the critical value of 50% for threeconsecutive months, indicating shrinkage of leading
timber enterprises it represents.
Summer is the traditional off-season for the Chinese
timber market, says the report, but enterprises wereconcerned about issues such as blue stain and cracking inwood, leading to a reduction in production activities.
Typically, the production cycle for the second half of theyear begins in September.

See: https://www.ittoggsc.org/static/upload/file/20240822/1724289606498649.pdf
Average CIF prices, logs US$/cu.m
2024

2024

Jun

Jul

Okoume279

271

Merswa

229

191

Teak

457

434

Merbau

498

432

Birch

515

493

Oak

146

152

Data source: Customs, China

As for the GTI-China Index’s 11 sub-indexes, two(inventory of finished products, and delivery time) wereabove the critical value of 50%. One index (import) was at
the critical value, and the remaining eight were all below.

Average CIF prices, sawnwood, US$/cu.m

Sapelli

521

545

Compared to the previous month, the indexes in July forexisting orders, inventory of finished products, purchasequantity, import, inventory of main raw materials, anddelivery time increased by 0.2-3.0 percentage points. The
indexes for production, new orders, export orders,purchase price, and employees declined by 0.1-8.0
percentage points.

Merbau

804

788

Teak

864

804

Lauan

175

-

African mahogany

621

629

Oak

450

459

2024

Jun

Jul

Data source: Customs, China

In the first half of 2024, according to the GTI July report,
China's cumulative exports of furniture and furniture parts
reached US$35.379 billion, representing a year-on-yearincrease of 14.8%, according to China’s customs statistics.
During the same period, affected by previous highinventory and still unclear market demand, China's total
import volume of wood was 32.77 million cu.m,
representing a year-on-year decrease of 5.32%.

21

2024

ITTO TTM Report: 28:16 16 – 31 August 2024

Data source: Customs, China

EU+UK imports of plywood from outside the region haveremained weak in 2024. In the first five months of theyear, total imports were 1.58 million cu.m, just 1% morethan the same period in 2023.
Imports of tropical plywood were down 5% to 180,600
cu.m and imports of softwood plywood were down 6% to652,000 cu.m. However, these declines were offset by a
10% rise in imports of temperate hardwood plywood to748,800 cu.m.
Despite the slight rise this year, EU+UK imports oftemperate hardwood plywood remain well down on levels
prevailing before Russia’s invasion of Ukraine in February
2022 and the subsequent imposition of economic sanctions
on Russia and Belorussia by the EU and UK, including a
total ban on all imports of timber products from bothcountries.
Due to slowing economic conditions in Europe for thesecond half of 2022 onwards, the anticipated surge inplywood imports into Europe from alternative supply
countries following the removal of Russian andBelorussian products from the market has been much lessdramatic than expected.

Data source: Customs, China

EU
European plywood production and imports at record
low

Total EU+UK imports of plywood from outside the regionin 2023 were 3.29 million cu.m, down 26% compared tothe previous year and only just exceeding the record lowof 3.1 million cu.m in 2009 during the global financial
crises.
The decline in 2023 felt even more dramatic as it followedon from two years in 2021 and 2022 when imports were atrecord levels averaging 4.5 million cu.m per annum (Chart
1a).

22

By far the biggest gain in market share has been made bytemperate hardwood plywood from China (Chart 1b).
There was also a surge in birch plywood imports into the
EU from Kazakhstan in 2023, raising immediate concernsthat some European importers were deliberately
circumventing the sanctions by sourcing Russian birch
plywood from third countries.

ITTO TTM Report: 28:16 16 – 31 August 2024

EU domestic plywood manufacturers were unable toincrease production in response to the supply gap that
opened following the sanctions on Russian andBelorussian products.
Data from the European Panels Federation indicates that
total EU plywood production fell 2.5% from 3.2 million
cu.m in 2021 to 3.1 million cu.m in 2022 and then afurther 15% to just 2.6 million cu.m in 2023.
In fact, the level of EU production last year wasunprecedented, being the lowest ever recorded and only
about half the volume of nearly 5 million cu.m per annum
prevailing before the COVID pandemic.

In the first five months of this year, EU+UK plywood
imports of temperate hardwood plywood increased 10% to748,800 cu.m. The gains were mainly due to imports from
China and Ukraine, which were 564,100 cu.m and 90,800
cu.m in the January to May period this year, respectively
12% and 35% more than the same period in 2023.
Imports of temperate hardwood plywood from Kazakhstan
were down 37% to 33,700 cu.m while those from Turkey
fell 48% to 11,500 cu.m in the first five months of thisyear (Chart 3).

This year, EU+UK imports of tropical hardwood plywood
direct from tropical countries have held up better thanimports of plywood faced with tropical hardwood from
China. In the first five months of this year, imports from
China into the European region, which are mainly destinedfor the UK, decreased 22% to 40,300 cu.m.
In contrast, imports direct from tropical countries during
the period were 129,000 cu.m, just 1% less than the same
period in 2023.
Although imports from Indonesia fell 11% to 50,100 cu.m
and were down 5% to 27,100 cu.m from Gabon, there wasa strong 27% rebound in imports from Malaysia to 24,400
cu.m, while imports from Vietnam increased 78% to 8,900
cu.m and imports from Paraguay were up 29% to 4,100
cu.m (Chart 2).

The decline in European imports from Kazakhstan andTurkey comes at a time when the European Commission isextending anti-dumping measures on imports of birch
plywood, previously applied to Russian products, toimports from the two countries.
23

ITTO TTM Report: 28:16 16 – 31 August 2024

The EC announced the extension on 14 May this year
following an EC investigation which concluded that EU
anti-dumping duties on imports of birch plywood from
Russia were being circumvented by imports transhippedfrom Russia to Kazakhstan and Turkey, or sent for final
completion to these countries, preceding shipment of thefinished product to the EU.
In the first five months of this year, the EU+UK region
imported 652,000 cu.m of softwood plywood, 6% lessthan the same period in 2023. The decline in imports was
driven mainly by Brazilian products, for which imports
fell 7% to 524,000 cu.m.
Imports from China also declined, by 6% to 33,000 cu.m.
Imports from South Africa increased by 10% to 8,000
cu.m. Imports from Chile were stable at 63,000 cu.m.

“The Netherlands and UK have performed slightly below
2023 so far but are picking up slowly and expected to bein line with last year at the end of 2024,” they said.
“However, France and Germany have performed below
expectation.” A key concern for European importers has
been the hike in freight rates.
“Part of the increase is justifiably attributed to the attacks
on shipping in the Red Sea, leading to vessels having to
avoid the Suez Canal and take the long route around thetip of Africa,” said an EU importer-distributor. “But the
feeling is that some shipping lines are taking advantage ofthe situation and increasing rates over and above what isjustified.”“This situation has been causing real issues for us,” said a
UK importer. “A 40-ft container from Southeast Asia had
fallen from the peaks we saw in the pandemic to around
US$1,000 in December 2023, but in 2024 rates returned toabove US$10,000 and we’re now paying around
US$7,500. We expect the situation to remain challenging
until rates go down below US$5,000 a box, but we don’t
anticipate that happening until 2025.”
Plywood prices on a firming trend“Far East and China FOB rates haven’t changed a lot, but
prices have of course been driven by the logistic costs,”
said an EU importer-distributor. “For Africa and SouthAmerica logistic cost have remained more stable, but FOB
rates increased throughout Q1and Q2 this year.”
A UK importer qualified this by saying that Brazilian
plywood prices were still below their previous peak, kept
down by cuts in the price for competing EU-made OSB
which manufacturers have made to ‘combat imports’.
Another European importer said their best performers so
far this year have been ‘Chinese commodity and highquality plywood’, okoumé plywood and eucalyptus
plywood from South America.
European plywood importers look to 2025 for market
upturnLeading European plywood importers have forecast trade
to be on a level with 2023 or be only marginally up thisyear. They are not expecting a more robust recovery until
next year.
A UK importer-distributor of temperate and tropicalplywood said their market ‘still feels depressed’. “We
expect 2024 to remain flat,” they said. “We don’t
anticipate much change until interest rates fall and housebuilding kick starts the UK economy. We just hope thatthe new UK government lives up to its pledge to backconstruction to build 1.5 million new dwellings in the next
five years.”
An EU-based importer, who described their business as‘heavily dependent on construction’, said that some of
their national plywood markets have been doing better
than others.
24“We’ve also sold some volumes of tropical hardwood
plywood from Indonesia, and some marine plywood into
the UK from Malaysia and Indonesia,” they said.
Another importer reported an increase in offers of
rubberwood and acacia plywood from Malaysia andIndonesia.
Following the UK and EU embargo on Russian andBelarusian timber and wood products, one UK importer
said birch plywood of unknown provenance was coming
into the market.
“We can’t comment on its true origins, but we hope it isbeing fully checked by the UK Office of Product Safety
and Standards [which polices legality of timber imports],”
they said.
Some importers say that the ban on Russian birch plywoodin the EU is actually opening up opportunities.

ITTO TTM Report: 28:16 16 – 31 August 2024

“It has had a positive effect on our business as we’ve beenable to replace birch with high quality film-faced plywood
from China with better margins,” said an EU importer.
No major availability issues are being reported byimporters. “We experienced some shortness in supply in
Q1 2024 due to logistics issues from China and the rest ofSoutheast Asia, but overall, it’s been sufficient to meetdemand,” said an EU importer.
A continuing concern of the EU plywood sector is the EU
Deforestation Regulation (EUDR), which comes into force
at the end of 2024. It will require that companies whichplace timber and wood products from all origins on the EU
market undertake due diligence to ensure their production
is not implicated in deforestation or forest degradation.
They will also have to provide geolocation coordinates forthe origins of products.
“It will create huge administrative burdens,” said one
importer. “We are working with a third party to ensurecompliance, as we did under the previous EU Timber
Regulation (EUTR), and we expect the cost of this to go
up 40% to 50% under the EUDR compared to under the
EUTR. We also think the EUDR may lead to some
suppliers looking to alternative markets to the EU,
including some Chinese suppliers. There have been callsfrom the EU timber sector for introduction of theRegulation to be delayed to give business a longer
transition period, and we would support that.”
That prospects for 2025 are looking more promising seems
to be the general view among European importers.
“While the rest of 2024 is looking unexciting, there aresigns things will be better in 2025,” said a UK importer.
“Once construction picks up, as is predicted, everything
will improve from there.”“Increased prices as of Q2 into Q3 and Q4 this year will
help us improve turnover and margins in 2024, and wehave seen some increase in import volumes, although that
may be the follow on from logistics issues for Far East andChinese cargoes we saw earlier in the year,” said an EU
importer. “It remains to be seen how stocks will evolve in
Q4. But we see further market improvement from Q2 2025
and for the second part of the year we are more
optimistic.”
Europe’s wood panel manufacturing sector had adifficult 2023 - anticipates improvement this year

According to the European Panel Federation’s (EPF) latest
Annual Report, Europe’s wood panel manufacturing sector
had a difficult 2023. This year the EPF expects to see a
degree of improvement in sales, however, a stronger
upturn is not anticipated until 2025.
A summary of the EPF report, covering market
development and European panel producer performancethrough 2023/24 was presented at the EPF agm in Riga in
June.

25

The event was reported by Wood Based Panels
International as attracting an audience of 180, drawn fromacross particleboard, plywood, MDF, OSB, hardboard andsoftboard industries.
It underlined the EPF’s‘representation of all panel types and the whole ofEurope’, said WBPI, with the organisation reporting
market statistics for the EU 27, UK and EFTA and some‘all-Europe figures’, including those of Belarus, Russia,
Turkey and Ukraine.
Delegates heard that Europe’s total wood panel production
declined by 6.3% in 2023 to 56.5 million cu.m, hit by poor
construction and furniture production. European wood
furniture output was 8% down and consumption11% in
2023 after declines of 11% and 12% respectively in 2022.
Furniture production in the EU27+UK was valued at€39.7bn and consumption at €39.4bn. Euroconstruct
reports that overall construction output last year in the 19
countries it covers was down 1.4%.
According to the EPF report, last year’s contraction in
European panel production followed a 7.7% decline in
2022 after the post-pandemic home improvement surge
resulted in record output the year before.
Oriented strand board (OSB) was the only panel productarea that saw production growth in 2023, with an
EU27/UK/EFTA increase of 2% to 6.6 million cu.m,
versus 6.5 million cu.m in 2022.
Particleboard output was down 5% in 2023 at 30.9 million
cu.m, while MDF production fell 11% to 11.1 million
cu.m.
After growing significantly in recent years,
softboard production – mainly for the insulation sector was 6% lower in 2023 at 4.8 million cu.m. Down most
sharply was hardboard production, which was 17% lower
than 2022 at 400,000 cu.m. Plywood manufacture fell 15%
to 2.6 million cu.m.
The EPF reports that furniture production remained thebiggest consumer of European wood panel products lastyear. But with furniture sales falling due to the uncertain
economic situation, high interest rates and inflation andconsequently decreased consumer confidence, the sector
accounted for 47% of total panel output, down from 48%
in 2022. The building industry accounted for 39%, while
3% went to the packaging sector and 11% to otherapplications.
The EPF projects that 2024 will see a return to market
growth, but with total European wood panel output up
only about 500,000 to 600,000 cu.m at 31.5 million cu.m.
OSB output is forecast to rise 150,000 cu.m to 6.75
million cu.m, with MDF production up around 90,000
cu.m.
Plywood production is also expected to show a slight rise.
EPF forecasts that EU27 output will be up 40,000 cu.m,with a total Europe production increase (including output
from Belarus, Ukraine, Russia and Turkey) of 50,000
cu.m.

ITTO TTM Report: 28:16 16 – 31 August 2024

Discussion topics at the EPF AGM also included theEuropean Commission’s communication on ‘Building thefuture with nature’ and its potential impact on the wood
panel sector.
It states that biotechnology andbiomanufacturing are among the most promisingtechnological areas for the EU in the 21st century, with thecapacity to modernise and advance forestry and bio-basedmaterials sectors, among other industries.
Katharina Knapton-Vierlich, Head of Unit at the EC
Directorate General which supports growth and resilienceof the EU economy detailed possible next steps fordeveloping the bio-based materials sector. These include
creating an EU biotech hub, introducing labelling for biobased materials, and revising Product Environmental
Footprint rules to ensure fair comparisons between biobased and fossil- based products.
See: https://europanels.org/annual-report/
andhttps://ec.europa.eu/commission/presscorner/detail/en/STATEM
ENT_24_1610
andhttps://www.wbpionline.com/

North America
US building permits fall sharply

New residential construction in the US saw a steep drop in
July, according to the latest US Department of Commerce
report.
The report said housing starts fell 6.8% to an annual rateof 1.238 million after jumping 1.1% to a revised rate of
1.329 million in June. Single-family housing starts, which
account for the bulk of homebuilding, fell 14.1% to aseasonally adjusted annual rate of 851,000 units lastmonth. Homebuilding has now declined for five straightmonths.
The Commerce Department said building permits also
dropped 7% to an annual rate of 1.396 million in July afterrising 3.9% to a revised rate of 1.454 million in June.
Though mortgage rates have since retreated amid
optimism that the Federal Reserve will cut interest rates, ajump in new housing inventory to levels last seen in early2008 could limit any rebound in starts.
A National Association of Home Builders survey showed
homebuilder sentiment fell to an eight-month low inAugust. Builders blamed "challenging housing
affordability conditions" for the fourth straight monthly
drop in confidence.
The news was much better in Canada as housing starts
climbed 16% in July compared with the previous month.
Groundbreaking increased on multiple unit and singlefamily detached urban homes, data from the national
housing agency showed.

26

The seasonally adjusted annualized rate of housing starts
increased to 279,509 units from a revised 241,643 units inJune, the Canadian Mortgage and Housing Corporation(CMHC) said. Economists had expected starts to rise to245,000.
Existing-home sales increase for first time in fivemonthsUS existing home sales rose more than expected in July,reversing four consecutive monthly declines, as improving
supply and declining mortgage rates offered hope that
activity could rebound in the months ahead.
Home sales rose 1.3% last month to a seasonally adjusted
annual rate of 3.95 million units, the National Associationof Realtors (NAR) said. Economists polled by Reuters had
forecast home resales would edge up to a rate of 3.93
million units. But year-over-year, sales fell 2.5% (downfrom 4.05 million in July 2023).
"Despite the modest gain, home sales are still sluggish,"said Lawrence Yun, the NAR's chief economist. "Butconsumers are definitely seeing more choices, andaffordability is improving due to lower interest rates."
Single-family home sales grew 1.4% to a seasonallyadjusted annual rate of 3.57 million in July, down 1.4%
from the previous year. Existing condominium and co-op
sales in July were identical to June at a seasonally adjusted
annual rate of 380,000 units.
Sales rose 1.1% in the US South, and they were
unchanged in the Midwest, which is considered the mostaffordable region. Sales advanced 4.3% in the Northeast
and increased 1.4% in the West.
See: https://www.nar.realtor/research-and-statistics/housingstatistics/existing-home-sales
Economy expanded in the second quarter

First half economic growth in the US was solid, with theeconomy expanding at a robust 2.8% annualized rate in
the second quarter, according to figures released by the US
Department of Commerce, which are adjusted for inflationand seasonal swings.
Gross domestic product (GDP), the broadest measure of
economic output, was much stronger in the second quarter
than economists predicted. The GDP report showed thatbusinesses are continuing to invest, and consumers are still
opening their wallets. That’s key, because consumer
spending is America’s economic engine, accounting forabout two-thirds of US economic output.
As the economy continued to expand from April throughJune, inflation resumed a downward trend and seems to be
on track to slowing further toward the Federal Reserve’s
2% target.
America’s economy is set for a ‘soft landing’, which iswhen inflation returns to the Fed’s target without arecession, something that’s only happened once, during
the 1990s, according to some economists.

ITTO TTM Report: 28:16 16 – 31 August 2024

But even as the broader economy remains robust,
Americans are still downbeat. Inflation is an economywide problem, so pessimism has been felt broadly.
Purchasing a home in many markets across the country
remains out of sight, with home prices at a record high andmortgage rates still painfully elevated.
The booming job market in the aftermath of the Covid-19
pandemic has recently returned to normal and it’s
becoming a lot tougher to find a new job.
See: https://www.bea.gov/news/2024/gross-domestic-productsecond-quarter-2024-advance-estimate
US job gains revised downward

US hiring slowed substantially in July as employers added
a disappointing 114,000 jobs amid historically highinterest rates, persistent inflation and growing household
financial stress. Construction added 25,000 of those jobs
in July while manufacturing employment remained flat.
The unemployment rate rose from 4.1% to 4.3%, thehighest since October 2021, the Labor Department
reported. The rise, along with the pullback in payroll gains
and slowing wage growth, is stoking recession fears andbolstering the Federal Reserve's case for cutting interest
rates, possibly sharply, in September.

Election impacting consumer sentiment

A surge in optimism by Democrats over the prospects ofVice President Kamala Harris being elected President
lifted US consumer sentiment slightly this month. The
University of Michigan's consumer sentiment index edged
up to 67.8 from 66.4 in July. Americans' expectations forthe future rose, while their assessment of current economic
conditions sank slightly.
Joanne Hsu, the university's director of consumer surveys,
said she expects the index to bounce with changing poll
results as the November election nears. Consumers on
both sides of the political divide say their economic
outlook "depends on who's going to win the election,'' she
said.
The Michigan index has rebounded after bottoming out at
50 in June 2022 when inflation hit a four-decade high, but
it remains well below healthy levels.
http://www.sca.isr.umich.edu/
andhttps://www.msn.com/en-us/money/markets/us-consumersentiment-rises-slightly-on-democratic-optimism-overharris-presidential-prospects/arAA1oVdeR?ocid=BingNewsVerp
US manufacturing continues to shrink

Compounding the picture of a flagging job market,
employment gains for May and June were revised down
by a total of 29,000. And while a feeble jobs report could
always be a one-month blip, gains over the past threemonths averaged 169,000, down from 218,000 theprevious three months.
US employment overall has stayed remarkably resilient,largely because companies have been hesitant to lay off
workers after severe COVID-related labor shortages. Butthat appears to be shifting. Jobless claims, a gauge oflayoffs, are still low by historical standards, but in Augustrose to the highest level in more than a year.
There is also new data showing that the job growth overthe last year was not as strong as believed. The Bureau ofLabor Statistics (BLS) reported that the economy created818,000 fewer jobs from April 2023 through March 2024,
representing the biggest revision to federal jobs data in 15
years.
The revisions could add to pressure on the Federal Reserve
to cut interest rates, because they indicate the labor market
wasn’t quite as strong as it looked during this period. The
BLS releases revisions to data all the time, but it’s unusual
for revisions to be this large. This set of revisions is
considered preliminary; the figure will be finalized in
February.
See: https://www.bls.gov/news.release/empsit.nr0.htm

27

A key barometer for US manufacturing fell in July for the
fourth consecutive month and hit an eight-month low — asign that an ongoing slump has deepened.
The Institute for Supply Management’s manufacturingindex slid to 46.8% last month from 48.5% in June.
Numbers below 50% signal the manufacturing sector isshrinking.
“US manufacturing activity entered deeper into
contraction,” said Timothy Fiore, chairman of the ISM
survey. “Demand remains subdued, as companies show an
unwillingness to invest in capital and inventory due tocurrent federal monetary policy and other conditions.”
One survey respondent, an executive from the wood
products industry, agreed that high interest rates arehindering manufacturing. “Elevated financing costs havedampened demand for residential investment,” they wrote.
“This has reduced our need for component products andinventory.”
Five of the 18 manufacturing industries surveyed by ISM
reported growth in July, including the Furniture & Related
Products sector. The Wood Products sector was among 11
industries reporting contraction for the month.
See: https://www.msn.com/en-us/money/markets/slump-goes-onmanufacturing-contracts-for-fourth-month-in-a-row-ism-finds/arBB1r1Mn4?ocid=BingNewsVerp

ITTO TTM Report: 28:16 16 – 31 August 2024

Data source: US Census Bureau, Foreign Trade Statistics
Note: the doubling of the unit value for teak may be a statisticalerror. Use with caution.

Data source: US Census Bureau, Foreign Trade Statistics

Disclaimer: Though efforts have been made to ensure
prices are accurate, these are published as a guide only.
ITTO does not take responsibility for the accuracy of thisinformation.
The views and opinions expressed herein are those of
the correspondents and do not necessarily reflect thoseof ITTO

28

ITTO TTM Report: 28:16 16 – 31 August 2024

US Dollar Exchange Rates
As of 25 August 2024

Abbreviations and Equivalences
Arrows 

Price moved up or down from month earlier

BB/CC etc

quality of face and back veneer

BF, MBF

Board foot, 1000 board footBoulebundled boards from a single log

TEU

20 foot container equivalent

83.81

CIF

Cost insurance and freight

Rupiah15,401C&F CNF

Cost and freight

Japan

Yen

144.37cu.m cbm

cubic metre

Malaysia

Ringgit

4.37

FAS

First and second grade of sawnwood

Peru

Sol

3.73

FOB

Free-on board

UK

Pound

0.76

GenbanSawnwood for structural use in house building

South Korea

Won

1,324.66

GMS

General Market Specification

GSP

Guiding Selling Price

Hoppus ton

1.8 cubic metre

KD, AD

Kiln dried, air dried

Koku

0.28 cubic metre or 120 BF

LM

Loyale Merchant, a grade of log parcel

MR.., WBP

Moisture resistant, Weather and boil proof

MT

Metric tonne

OSB

Oriented Strand Board

PHND

Pin hole no defect

QS

Qualite Superieure

SQ,SSQ

Sawmill Quality, Select Sawmill Quality

BrazilReal

5.49

CFA countries

CFA Franc

589.84

China

Yuan

7.12

Euro area

Euro

0.89

India

Rupee

Indonesia

Exchange rate indices (US$, Dec 2003=100)

Ocean Container Freight Index

Data source: Drewry World Container Index

See: https://www.drewry.co.uk/supply-chain-advisors/supplychain-expertise/world-container-index-assessed-by-drewry

29

ITTO TTM Report: 28:16 16 – 31 August 2024

Price indices for selected products

The following indices are based on US dollar FOB prices

To have a free copy of this twice-monthly ITTO Market
Information Service bulletin emailed to you on the day of
production, please register at:
Note: Indices for W. African logs and sawnwood are recalculated
from Euro to US dollar terms.

30

http://www.itto.int/en/mis_registration

ITTO TTM Report: 28:16 16 – 31 August 2024