The International Tropical Timber Organization (ITTO) launched the 1-15 May issue of the Tropical Timber Market (TTM) Report highlighting the collapse of teak log prices in Myanmar ahead of the raw log export ban.
The drop in price can be attributed to a sharp increase in prices before the ban came into effect combined with limited domestic mill capacity, which is causing a backlog in the milling of teak.
16 May 2014: The International Tropical Timber Organization (ITTO) launched the 1-15 May issue of the Tropical Timber Market (TTM) Report, which highlights the collapse of teak log prices in Myanmar ahead of the raw log export ban. The drop in price can be attributed to a sharp increase in prices before the ban came into effect combined with limited domestic mill capacity, which is causing a backlog in the milling of teak.
Related to the Myanmar story, the report notes that mills in India are increasingly switching to domestic supplies of teak as the international supply of raw logs diminishes. Other headline stories from the region feature an exploration of the potential of biomass and bioenergy to become a significant industry in Indonesia and a report that particleboard production in China has reached 25 million cubic meters per year.
Elsewhere, the report states that Ghana is currently well positioned to begin trading timber that conforms to EU Forest Law Enforcement, Governance and Trade (FLEGT) regulations. The progress is significant as Ghana was the first country to enter into a Voluntary Partnership Agreement (VPA) with the EU.
With regard to new technologies and products, the newsletter highlights the adoption of infrared technology, which allows for mahogany to be differentiated from species with similar appearances, such as cedar. The technology was developed in Brazil in order to address the illegal logging and sale of mahogany, which is an endangered timber species.
Finally, reflecting on markets for finished timber products, the newsletter reports that the decking market in the EU remains slow, however data show an upward trend. Meanwhile in the US, the report takes note of a consumer preference for darker wood, however, lighter woods such as white oak and maple are gaining in popularity.
In addition to the headline stories, the report contains tropical timber market reports from Brazil, China, Ghana, Guyana, India, Indonesia, Japan, Malaysia, Myanmar and Peru. The report further recounts regional tropical timber market statistics from Central and West Africa, Europe and North America.
The TTM, published through the ITTO Market Information Service (MIS), requires free registration to access the reports. [Publication: Tropical Timber Market Report – Volume 18 Number 9, 1st-15th May 2014]