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News In Short, Jan 2006
The markets in a glimpse
After Christmas break, most prices remained unchanged. However, prices rebounf
for the sapele's log in Africa and the plywood in South-East
Asia. In Brazil bottlenecks continue to difficult the wood industry.
In Japan, plywood prices are going up and forecasts indicate
slowdown in European residential construction
The European Union reduced import duties on Malaysian plywood
from 7 % to 3,5 % as of Jan. 1st, 2006. At the same time, the EU raised
import duties to Chinese plywood from 3,5 % to 7 %
In Brazil, prices surge due to US dollar exchange rates. Jatoba
and ipe prices are higher, however, due to the supply' reduction.
The lack of a Forest Management Plan application has halted more than 50
% of solid-wood production in Brazil's Northern States. This fact has a
very negative impact on local economy. Market recovery is expected after
March 2006. Solid-wood exports fell 10 % 10% in Nov. 2005 compared with
Nov. 2004
Spain imports of Brazilian sawnwood jumped
Spain imports of Brazil's sawnwood grew 41 % in the first half of 2005.
Brazil is now Spain's largest sawnwood supplier
Brazil's Plywood Market
Exports of tropical plywood fell 54 % in Nov. 2005 compared with
Nov. 2004 due to shortage of supplies. Pine plywood exports, however,
jumped 62 % in Nov. 2005, compared with Nov. 2004
Japanese demand is said to decrease in 2006
The forecasts for the Japanese consumptiom of tropical logs is said to decrease
5,1% in 2006. Plywood imports continue declining
Source: ITTO / OIBT
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