At the end of February the national budget for the coming fiscal year is expected to be submitted to parliament. Analysts expect the new budget to contain stimulus measures to address the slowdown in the Indian economy.
This slowdown is primarily the result of weak demand in the main export markets of the USA and Europe. It is anticipated that the stimulus measures will focus on boosting industrial production for exports and on checking inflation.
Over the past year the Indian timber industries have managed to adjust to the slowing economy and overall market developments.
As mentioned in the previous issue of the TTMR, log imports have been increasing. The performance of Indian wood product exporters is encouraging as illustrated in the table below.
Exports of wood products 2011-12 compared to 2010-11
|Value Rs. Million||Value USD Million|
|Plywood and Wood Products||23612.4||26864.8||519||567.6|
|Cork& cork products||116.2||140.1||2.6||3|
|Hard board of wood fiber||486.2||598.8||10.7||12.7|
|Other articles of wood||4560.7||6854.6||100.2||144.8|
|Sandal wood chips||92.8||105.8||2||2.2|
|Tea chest panel||1||6.5||0||0.1|
|Other plywood and products||599.7||965.7||13.2||20.4|
Source: Min. of Commerce Export/Import Databank
Sales of Teak and other hardwoods from Indian forests.
The latest average prices for teak and other hardwoods at government teak depot tenders in Central India are shown below. Prices are in rupees per cubic foot, ex depot.
|2-3 metre length|
|46-60 cm girth||Rs. 800~900|
|61-75 cm girth||Rs. 900~1000|
|76-90 cm girth||Rs. 1000~1050|
|91 cm and up||Rs. 1300 and up|
|3-4 metre length|
|46-60 cm girth||Rs. 850~950|
|61-75 cm girth||Rs. 1000~1100|
|76~90 "||Rs. 1150~1200|
|91 cm and up||Rs. 1300~1350|
|4-5 metre length|
|45-60 cm girth||Rs. 1050~1150|
|91 cm and up||Rs. 1600 and up|
|Haldu (Adina cordifolia) and
Laurel (Terminalia tomentosa)
|3 metre and up length|
|75 cm and up girth||Rs. 400~600|
Import volumes of plantation teak logs
India is a major buyer of plantation teak from more than 30 countries. Imports of natural teak come only from Myanmar.
Details of imports of plantation teak received at Kandla port during the 2011-12 financial year are shown below.
The table provides information on the volume of imports from countries supplying more than 5000 cubic metres of plantation teak during the year.
Plantation teak log prices
Current C & F prices per cubic metre for imported plantation teak are shown below. Analysts report that supplies and deliveries of plantation teak remain stable and that prices levels have not changed significantly.
Current prices, C & F Indian ports, for plantation Teak are shown below.
Imported Plantation Teak Prices (C&F)
|US$ per m3|
|Tanzania Teak sawn||450-800|
|Côte d'Ivoire logs||450-850|
|Burkina Faso logs||-|
|Costa Rica logs||400-650|
Variations exist based on lengths and average girths of logs in a parcel. Prices also vary with measurement allowances given for bark and sap in different countries of origin.
Domestic Ex-mill prices for imported timbers
Domestic prices (per cubic foot ex-sawmill) for air dried sawn timber remain unchanged and are indicated below.
The price range reflects differences in the length and cross section. Analysts say the trend to replace teak with other durable tropical hardwoods continues, driven mainly by the high price of teak.
Domestic Ex-mill Sawnwood Prices for imported timbers
|Sawnwood, (Ex-mill) (AD)||Rs. per ft3|
Radiata Pine (AD)
|Sawnwood, (Ex-warehouse) (KD)||Rs per ft3|
Hemlock clear grade
Hemlock AB grade
Western Red Cedar
Domestic Ex-mill Sawnwood Prices for Myanmar Teak Sawn in India
|Teak Export Grade F.E.Q||Rs. 4500 to 10500|
|Teak A grade sawn timber||Rs. 3400 to 4000|
|Teak B grade sawn timber||Rs. 2800 to 3100|
|Sawn Myanmar Plantation Teak|
|FAS grade lumber||Rs. 2000 to 2600|
Indian plywood manufacturers investing overseas
The sourcing by Indian plywood manufacturers of core and even face veneers from Vietnam, Thailand, Malaysia and Myanmar is increasing. There is growing interest from Indian companies in constructing plywood mills the countries mentioned above.
Current plywood prices, ex-warehouse, per square foot are shown below:
Domestic Ex-warehouse Prices WBP Marine Grade Plywood
|Plywood, (Ex-warehouse)||Rs per sq.ft|
Domestic Ex-warehouse Prices for Locally Manufactured Plywood
|Rs per sq.ft|
|5mm Flexible ply||Rs.30.00|