Towards the end of January some reports of firming log prices for selected species have emerged. This may have been triggered by the continuing unclear situation as regards the proposed ban on log exports announced last year byљGabon.

SNBG told - halt log exports
So far as is known, all loading of log vessels, except those for SNBG, was halted as of 1st of January. Reports indicate that the state owned organization SNBG, which at one time held a monopoly on log exports, initially continued to export logs but that has now also been stopped. Reports indicate that the port authority has sent home the log port workers pending further guidance from government.

The lack of clarity on this issue leaves producers and their overseas buyers with difficult decisions to make on their future market positions. In the meantime producers inљGabonљwere directed to advise the Ministry of Forests of the volume and make up of their log stocks and the details of existing log export contracts and proposed destinations.

Okoume prices not moving
Despite the strong demand for okoume logs only a modest increase of Euro 5 - 10 per cu.m has been reported. Both padouk and okan prices also made some gains recently while almost all other log prices are stable and unchanged. This stability may well be assisted by the relaxation in log export controls byљCameroonљwhere the so -called nonpremium species can now be exported without limit.

Congo Brazzaville also has okoume as well as the usual premium species, so buyers have remained calm and looked to these and other countries in the region for supplies. Whatever the outcome, it is certain thatљGabonљsawmillers will be increasing output and making decisions on when to re-open closed mills and complete those that were in the course of construction during 2008/9.

Positive signs in sawnwood demand
Sawn lumber prices have been stable but okan lumber has been priced upwards (by about Euro 45-50 per cu.m) and is still moving up according to traders. Italian buyers have been in the market since late 2009 and although these buyers are very price conscious, this has been a stabilising influence on the market overall as some business was ticking over.

Buyers for the French market have recently become more active and producers report that there are signs that European buyers may now have to consider moving more strongly to secure supplies for their March/April requirements. Overall, current market sentiment reflects a slightly more optimistic outlook.