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Stable prices for African lumber in spite of continuing slack demand within Europe

25.02.2012 − 

In spite of the unbroken phase of comparatively slack demand in Europe for a number of months now, both procurement and selling prices are considered to be stable for African lumber assortments. According to information from importers and agents, African sawmills currently see no need to yield to European buyers’ calls for price reductions. Scarcely any concessions are being granted in talks for major purchase volumes either. Importers are attributing this situation to two main factors. On the one hand, African sawmill operators are still encountering relatively brisk demand in other sales regions, especially in Asia, where in some cases at least, the demands on quality are not as high in the markets outside Europe, adding to the appeal of these markets. On the other, although the works in Africa currently have adequate supplies of logs for ongoing production, the majority of them have not yet completed the process of building up more substantial log stocks. Stocks of lumber are not considered to be inflated at the moment either, so the companies are not under any great financial pressure.

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