After a short quiet trading period while importers assessed their mid-year stock and forward position, the log market has become active once more. China has resumed regular purchases from Cameroon, Congo Brazzaville and smaller volumes are also being gathered from Equatorial Guinea and Democratic Republic of Congo.
Because of reduced exports of some heavy hardwood sawnwood from Brazil and other South American exporting countries, there has been a welcome increase in demand from European importers for iroko, which has raised both log and sawnwood prices.

Sapele is also in good demand and sawnwood output has been increased to cope with the higher level of orders. Prices for sapele logs and sawnwood are up and firming. Sipo sawnwood has experienced some increase in demand as European importers are now more comfortable to rebuild their stocks in preparation for the expected improved demand over the second half of the year.
Whilst housing starts in Europe have not yet recovered, there is better demand for hardwoods from a more active renovation and home improvement sector. As importers' stocks are low, this sector is the main reason for recently improved demand for tropical hardwoods. In addition, prices for West and Central African timbers are still very reasonable in comparison with some American and European temperate hardwoods.

Lack of investments in sawn mill business
Some exporters are still hoping that the government of Gabon will review the log export ban. However, the authorities in Gabon have indicated that all logs remaining in the port must be removed.
Sawmills in the region have strong order books. However, there has not been any news on investments to increase production capacities for sawnwood or downstream products. The market failures experienced over the past two years have discouraged investors from diversifying production.

Moreover, the continued uncertainty over the Gabon situation is not conducive for investors to make any longterm expansion plans. Also, uncertainty means that the importers are unable to assess the future raw material supplies for their in-country processing industries.

Incentive to obtain full certification
When the new EU import regulations on illegally harvested timber imports come into force in 2012, they will work as an incentive to African timber producers to obtain full certification. Consumers in EU, however, must be prepared to meet higher prices due to costs of the certification process.

Ghana chalks up gains in first quarter trade

Ghana's first quarter wood products exports in 2013 amounted to 97,490 cu.m, worth EUR31 million. Compared with the same period last year, exports showed a 4.3% increase in volume. Exports to other African countries accounted for 40% of the total export value for wood products. Primary products (poles and billets) accounted for EUR2 million, secondary products EUR27 million and tertiary products EUR2.4 million of the total export value.
Plywood, kiln-dried and air-dried lumbers were the major export products during the first quarter of 2013 contributing 37%, 19% and 17% respectively to the total export volume. The share of veneer in the total export volume was 9%. No furniture parts were exported in the first quarter of 2013 as was the case in the same period 2012.

Plywood exports to other African countries in the period amounted to 34,800 cu.m, up 7.8% compared to 32,300 cu.m in 2012. The main importing country was Nigeria with 80% share of the total exports wood products from Ghana. Other importing countries were Burkina Faso and Togo. Ceiba, Mahogany, Chenchen and Mixed Red Wood were the principal species for plywood production.
Both air- and kiln dried lumber exports expanded. Air dried lumber exports rose from 13,150 cu.m recorded in the first quarter last year to 16,550 cu.m this year. Kiln dried exports increased from 14,510 cu.m in the first quarter 2012 to 18,960 cu.m in the same period this year. Wawa, Mahogany, Sapele, Koto/Kyere, Teak, and Ofram were the major sawnwood species exported. Germany, the USA, the UK and France were the principal importing countries.