{"id":76242,"date":"2018-08-16T10:52:32","date_gmt":"2018-08-16T10:52:32","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/european-tropical-importers-face-rising-competition-for-supplies\/"},"modified":"2025-09-19T08:48:46","modified_gmt":"2025-09-19T08:48:46","slug":"european-tropical-importers-face-rising-competition-for-supplies","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/european-tropical-importers-face-rising-competition-for-supplies\/","title":{"rendered":"European tropical importers face rising competition for supplies"},"content":{"rendered":"

EU timber traders cited a number of factors shaping tropical import trends. These included intensifying competition for material from Chinese and other Asian buyers, which was driving up prices for tropical and temperate hardwood alike, as well as resulting in short supply in some species.<\/em><\/p>\n

But logistical problems, the \u2018deterrent effect\u2019 of the EUTR in the tropical market on both suppliers and buyers, as one importer described it, and ever intensifying competition from rival products, including temperate hardwoods, modified timber and wood composites, also had an influence.<\/p>\n

The restructuring of the African operations of the Frenchbased Rougier Group, one of the EU\u2019s key tropical producers and importers, was also felt to have impacted the market. And some companies also believe there is an underlying long term \u2018slow but discernible\u2019 decline in the EU tropical trade, although this is not a view shared by everyone.<\/span><\/p>\n

Interestingly, however, the EU temperate sawn hardwood market has also been experiencing its own challenges, notably supply constraints, price inflation and most recently allegations of illegality and breaches of the EUTR in one of the best selling species, European oak.<\/p>\n

Backlogs grow at Douala Port<\/strong><\/p>\n

One factor in the contraction in Cameroon\u2019s EU exports, which started in 2016, cited by a number of EU importers, was the continuing deterioration of operations at the port of Douala, the key timber trade export hub for much of Central and West Africa. The government has now appointed a commission to investigate the \u2018failed operations\u2019 at the facility. But importers don\u2019t expect rapid improvement to the rate of throughput and reductions in backlogs at the port any time soon.<\/p>\n

\u201cIt\u2019s a combination of poor management, old and unreliable equipment and silting up of access channels, which means that larger, deep-draft vessels can\u2019t dock,\u201d said an continental EU importer. \u201cSome shippers are exploring the possibility of using the new, Chinesefunded, deep-water port at Kribi, but this still has teething problems, and the only other real alternative is Pointe Noire in the Republic of Congo.\u201d<\/p>\n

According to latest reports the backlog of timber for shipment to China alone at Douala has now reached 60,000cu.m.<\/p>\n

As mentioned, the disruption to supply from Rougier\u2019s Cameroonian operations while the company has been under protective receivership is also thought to have hit the country\u2019s overall export figures.<\/p>\n

Rougier has now finalised the sale of its businesses SFID, Cambois and Sud Participation in Cameroon and RSM in the Central African Republic to Cameroon-based consortium Sodinaf.<\/p>\n

The latter was chosen as the buyer, said Rougier in its July 19 statement, \u201cfor the quality of its project, which will help ensure the sustainability of the activities sold\u201d.<\/p>\n

At the same time the company said it intended to \u201ccontinue to be a major player within its industry\u201d and would focus on developing its other more \u2018geographically aligned\u2019 African operations, notably in Gabon, \u201cin better conditions\u201d.<\/p>\n

But, while the situation is now seemingly resolved, some EU importers feel there may be continuing implications for trade with the Cameroonian operations.<\/p>\n

\u201cWith those ex-Rougier businesses now in Cameroonian rather than French ownership, they may well take a different market view and approach,\u201d said an importer, who also questioned whether the new owners would renew the FSC-certification which Rougier let lapse under receivership.<\/p>\n

Concentration of EU African import trade<\/strong><\/p>\n

The combination of these factors, with intensifying competition from Chinese buyers and the administrative time and cost burden of EUTR compliance is reported by companies in some EU countries to be leading to further concentration of the African importing sector.<\/p>\n

\u201cWe\u2019re seeing operators on the periphery of the trade, previously importing smaller quantities now and again, coming to us instead,\u201d said an importer.<\/p>\n

Supply issues are also applying further upward pressure on African prices. One company said both sapele and sipo\/utile were being quoted \u20ac50 to \u20ac60 per cu.m more for quarter one delivery 2019, an increase of around 10% on current prices. And another importer forecast a further 5- 7% increase in sapele by the year-end.<\/p>\n

Iroko and framire\/idigbo prices were also reported to have firmed, with supply of the former improving, but the latter becoming increasingly difficult to source.<\/p>\n

\u201cOverall African supply is tight, and drying specialists in the UK and the Netherlands in particular are finding it difficult to get enough hardwood to put through their kilns,\u201d said an EU importer.<\/p>\n

\u201cIt\u2019s very much a sellers\u2019 market. Our African suppliers have full order books and are very bullish. They can pick and choose their customers and often they\u2019re also choosing Chinese buyers because they both pay a good price and don\u2019t require the legality and sustainability verification we do.\u201d<\/p>","protected":false},"excerpt":{"rendered":"

EU timber traders cited a number of factors shaping tropical import trends. These included intensifying competition for material from Chinese and other Asian buyers, which was driving up prices for tropical and temperate hardwood alike, as well as resulting in … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59203,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715],"tags":[3291,3248,3680],"class_list":["post-76242","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","tag-eu","tag-imports","tag-tropical","topic-forestry","topic-sawmilling","area-africa","area-asia-middle-east","area-europe","area-south-america"],"acf":[],"yoast_head":"\nEuropean tropical importers face rising competition for supplies - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/european-tropical-importers-face-rising-competition-for-supplies\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"European tropical importers face rising competition for supplies - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"EU timber traders cited a number of factors shaping tropical import trends. 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