India is the main destination for ocean shipments of hardwoods from Myanmar
During the first quarter of the current fiscal year more than
80 per cent of all shipments of both teak and other
hardwoods from ocean ports in Myanmar went to India.
Less than 20 per cent was shipped by sea to China,
Thailand, Vietnam, and Bangladesh. Records of the cross
border timber trade with China are not available. India is
by far the most important market for both teak and
hardwoods from Myanmar.
About 70% of non-teak hardwood shipments last year went to India, followed by Bangladesh, China and Vietnam and about 80 % of teak went to India, the remaining 20% was shipped to Thailand, China and Vietnam.
Appreciation of the Kyat wipes out gains from export tax reduction
The government’s decision to reduce the export tax by 3 per cent beginning this month (July 2011) has been welcomed by the private sector. However, exporters feel that the reduction should be much more than 3 per cent. Opinions differ concerning how much the reduction should be.
The local timber industry says the export tax on processed added value wood products should be minimal. Some argue that if the government wants to tax timber exports then the levy should be on log exports. They argue that this would reduce sales of logs and help the development of the value added sector in the country.
Despite the reduction of 3 percent the exporters claim they have gained little since the Myanmar Kyat has appreciated about 20 percent against the US dollar within one year. The state owned newspaper, the Mirror Daily, has reported that during a meeting with the executive committee of the Myanmar Bankers Association the Union Finance Minister reportedly said that arrangements are underway to determine exchange rates for the Myanmar kyat that are stable as well as beneficial for the country.
Until concrete and viable results emerge, the business circle is said to be facing difficulties adjusting to the new exchange rate.
Myanmar
Myanmar Teak Log Auction
Prices (natural forest logs)
Hoppus
ton=1.8m³; All grades,
except
SG-3/5/6, are length 8' x girth 5' &up. SG-3/4/6
are girth 4' &up. SG-3 grade is higher than SG-4 but with lower
girth and price.
Prices differ due to quality or girth at the time of the transaction.
Buyer participation
Hong Kong 134 tons
Singapore 89 tons
Thailand 263 tons
India 117 tons
About 70% of non-teak hardwood shipments last year went to India, followed by Bangladesh, China and Vietnam and about 80 % of teak went to India, the remaining 20% was shipped to Thailand, China and Vietnam.
Appreciation of the Kyat wipes out gains from export tax reduction
The government’s decision to reduce the export tax by 3 per cent beginning this month (July 2011) has been welcomed by the private sector. However, exporters feel that the reduction should be much more than 3 per cent. Opinions differ concerning how much the reduction should be.
The local timber industry says the export tax on processed added value wood products should be minimal. Some argue that if the government wants to tax timber exports then the levy should be on log exports. They argue that this would reduce sales of logs and help the development of the value added sector in the country.
Despite the reduction of 3 percent the exporters claim they have gained little since the Myanmar Kyat has appreciated about 20 percent against the US dollar within one year. The state owned newspaper, the Mirror Daily, has reported that during a meeting with the executive committee of the Myanmar Bankers Association the Union Finance Minister reportedly said that arrangements are underway to determine exchange rates for the Myanmar kyat that are stable as well as beneficial for the country.
Until concrete and viable results emerge, the business circle is said to be facing difficulties adjusting to the new exchange rate.
| Teak Logs, FOB |
€ Avg per Hoppus
Ton
(traded volume) |
||
| Veneer Quality |
June
|
July
|
|
| 2nd Quality | nil | nil |
|
| 3rd Quality | nil | nil |
|
| 4th Quality | 4,412 (10 tons) |
4,546 (11 tons) |
|
| Sawing Quality | |
||
| Grade 1 (SG-1) | 3,128 (37 tons) |
3,128 (37 tons) |
|
| Grade 2 (SG-2) | 2,943 (23 tons) |
2,994 (41 tons) |
|
| Grade 4 (SG-4) | 2,188 (231 tons) |
2,092 (213 tons) |
|
| Grade 5 (SG-5) Assorted | 1,376 (159 tons) |
1,473 (153 tons) |
|
| Grade 6 (SG-6) Domestic | 1,299 (47 tons) |
1,284 (116 tons) |
|
| Grade 7 (ER-1) | 970 (115 tons) |
968 (35 tons) |
|
Prices differ due to quality or girth at the time of the transaction.
Buyer participation
Hong Kong 134 tons
Singapore 89 tons
Thailand 263 tons
India 117 tons