Exporters of timber from Nigeria, Ghana, Ivory Cost and other West African Countries are at crossroads as overall imports by China have plummeted by 14 per cent since August 2015. Already, export from Nigeria has slid by 5.5 per cent. It was learnt that Sapele, which was on high demand, is losing favour as China is no longer in the market for the specie.
Prices for the majority of West African timbers have been maintained for some time now, but there are signs of weakness in log prices. Mostly affected are Iroko, Okoume, Sapele, Belli and Moabi.
The price of iroko, which was 330 euros, has gone down to 260 euros per metre. Also, Sapele, which was 320 euros, has dropped to 220 euros, Moabi 320 euros dropped to 220 euros; Okoume declined from 220 euros to 160 euros. However, Belli still maintains 250 euros. According to the Timber Network report, there is fear that the heavy rains in Cameroon and Central African Republic may further affect logging and transport operations.
The report said that Chinese traders were trying to reduce landed stocks of log and sawn wood before contemplating new orders. It said: “For West and Central African exporters, trade volumes and prices for Okoume and Belli have been most affected.
In response to weak demand, millers in West and Central Africa have little choice but to cut back on production and this brings with it severe cash flow issues. “As of the beginning of September, these rumours had not affected prices for West and Central African hardwoods.
Regional shippers received a boost as there have been complaints circulating that some shipments of mixed light hardwoods from Asia to Middle East markets have been below the usual quality. In the first half of this year, demand and prices have held up well in Middle East markets, but now, there are some signs of uncertainty on the part of buyers.
