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Malaysian construction sector suffers continuing slump
13/06/2009 - 09:03
Demand for construction materials in Malaysia continued to decline, pushing down prices for construction materials. Steel, a competitor with timber products, was expected to further drop 25% in price in 2009. The trends, reported by the Malaysian Iron & Steel Industry Federation in The Star, showed declines in production of 10.7% to 7.8 million tons in 2008. Domestic prices of steel bars had tumbled from RM3,800 per ton in July 2008 to RM2,000 in recent weeks.

MFPC Chair calls for new marketing strategies
As reported in the Business Times, Chairman of the Malaysian Furniture Promotional Council (MFPC) Mr. Merlyn Kasimir encouraged Malaysian furniture manufacturers to enhance new marketing strategies to reposition themselves globally while achieving higher productivity and maintaining lower production costs. In 2008, exports of Malaysian furniture grew by 2% and were worth RM8.72 billion, while imports of furniture grew 9.8% and valued at RM1.5 billion. However, trade in Malaysian furniture exports declined by 14.2% in January 2009 and 13.8% in February 2009. On an annual basis, Malaysian furniture exports were worth about 2.5% of the world furniture trade.

Sarawak scales back timber quota rate
According to Bernama News, Sarawak scaled back the enforcement of its rules on the timber quota rate for the first six months of 2009 to help timber exporters weather the global recession. The standard royalty rate for timber has already been reduced from RM65 to RM50 per meter from January to December 2009. The payment period for timber royalties has also been extended from two weeks to three months.

Exports of timber products from Sarawak declined about 30% to RM1.3 billion in the first quarter of 2009, compared to RM1.9 billion in the first quarter of 2008. The volume of timber products also dropped 34% during the same period. Royalties from timber products plunged by about 39% to RM82.6 million in the first quarter of 2009, compared to RM134.9 million in the first quarter of 2008.

In 2008, the Sarawak timber industry registered a 2.6% rise in export revenues worth RM7.9 billion compared to RM7.7 billion in 2007.

Malaysia Log Prices
Malaysia Log Prices
Sarawak log, FOB US$ per m³
Meranti SQ up 228-252
Small
211-242
Super small
200-224
Keruing SQ up 216-228
Small
187-218
Super small
162-193
Kapur SQ up 206-231
Selangan Batu SQ up 178-215

Pen. Malaysia logs, domestic (SQ) US$ per m³
DR Meranti 232-251
Balau 298-325
Merbau 320-353
Rubberwood 42-77
Keruing 215-231
Peninsular Malaysian meranti logs are top grade and are used for scantlings for the EU. Their prices are higher than Sarawaks.


Malaysia Sawnwood Prices
Malaysia Sawnwood, FOB US$ per m³
White Meranti A & up
280-311
Seraya Scantlings (75x125 KD)
448-463
Sepetir Boards
249-271
Sesendok 25,50mm
350-368
Kembang Semangkok
294-317

Malaysian Sawnwood, domestic
US$ per m³
Balau (25&50mm,100mm+)
330-350
Merbau
472-523
Kempas 50mmx (75,100 & 125mm)
260-300
Rubberwood 25x75x660mm up
196-246
50-75mm Sq.
237-269
>75mm Sq.
259-288


Malaysia Plywood Prices
Malaysia ply MR BB/CC, FOB US$ per m³
2.7mm
414-476
3mm
391-421
9mm & up
336-408
Meranti ply BB/CC, domestic US$ per m³
3mm
387-428
12-18mm
321-350


Other Malaysia Panel Prices
Malaysia, Other Panels, FOB US$ per m³
Particleboard Export 12mm & up
228-251
Domestic 12mm & up
213-230
MDF            Export 15-19mm
283-315
Domestic 12-18mm
272-290


Malaysia Added Value Product Prices
Malaysia, Mouldings, FOB US$ per m³
Selagan Batu Decking
543-553
Red Meranti Mouldings 11x68/92mm x 7ft up
Grade A
559-572
Grade B
510-519


Malaysia Furniture and Parts Prices
Malaysia, Rubberwood, FOB US$ per piece
Semi-finished dining table solid laminated top 2.5'x4', extension leaf
58-74
As above, Oak Veneer
65-79
Windsor Chair
57-59
Colonial Chair
55-60
Queen Anne Chair (soft seat) without arm
55-63
with arm
55-64
Chair Seat 27x430x500mm
43-48
Rubberwood Tabletop US$ per m³
22x760x1220mm sanded & edge profiled
Top Grade
554-586
Standard
539-557


(ITTO's Tropical Timber Market Report)
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