With the impending log export policy that will come into effect on January 1 next year, there has been a spike in log exports in the past fortnight, according to the International Tropical Timber Organization (ITTO) Tropical Timber Market Report.
The trend is expected to continue until the end of this year, the organization said. Recently advertisements were placed in the media regarding the new policy. The export commission on popular log species is to be increased from January next year as government moves to dissuade the exportation of logs and to allow for more value-added activities in the country.
As reported earlier, several species of logs including greenheart and purpleheart will see the export commission on them go up from the current 2% to 12% in 2011. It will go up to 7% next year. The export commission on a number of other species will also move upwards at varying levels.
Meanwhile, the ITTO report said that there has been an increase in both domestic and export prices for most products up to November and log prices have increased for prime commercial species as well as lesser used species.
Log prices jumped 11.5% over last year’s average while sawn wood prices rose 8% with a higher increase of 11% seen in dressed sawn wood. The higher prices for dressed sawn lumber drove up supply and local exporters have responded positively to this favourable market condition, the release said.
It added that roundwood (piles, posts and poles) prices have shown the greatest rise of all products exported over the ten months period with a 13% increase over last year’s prices. This was followed closely by plywood, which showed a 12.4% increase for the period.
