Malaysia : Rubberwood Clones, Forest Plantation & Log Prices

Malaysia: Minister seeks to raise plantation productivity

03/09/2009 – 14:39
The Malaysian Minister of Plantation Industries and Commodities, Mr. Bernard Dompok, said Malaysia needs to maximize major plantation crop yields. Oil palms, rubber trees and cocoa trees accounting for the bulk of the crops, which the Minister is seeking to raise yields without expanding Malaysia’s existing planted land area. According to Bernama, he said the Ministry would encourage ‘better planting materials, good agricultural practices (GAP) and enhanced research and development (R&D)’.

Currently, more than 70% of available agricultural land is already planted with oil palms. The national crude palm oil (CPO) yield stands at 4 tons per hectare annually. However, some plantations are able to obtain a yield of 6 to 7 tons per ha. A study conducted by the Malaysian standard organization, SIRIM Bhd, revealed that 2.65 million hectares of oil palm trees could yield up to 7 million tons of oil palm trunks and 26.2 million tons of oil palm fronds annually. Oil palm fronds are a rich source of fiber for the manufacture of MDF and other panel products. The Minister continues to be hopeful that the national CPO yield can be raised to 6 tons per hectare, thus obviating the need to plant another 2 million hectares of oil palms.

Rubber trees have historically been a popular plantation species in Malaysia. The current yield of natural rubber latex in Malaysia is 1.4 tons per hectare annually, compared to Thailand, which has shown higher yields at 1.8 tons per hectare per annum. Currently, there are 1.24 million hectares of rubber trees in Malaysia. However, the Malaysian Rubber Board (MRB) has launched the latest high-yield clone, RRIM 3001, that could yield 2 tons of natural rubber latex per hectare per year. The MRB is also working on creating future rubber clones that could yield at least 2.0 m³ of rubberwood per tree to meet the demands of the Malaysian furniture industry.

For timber under the country’s forest plantation programme, the Ministry is looking to produce 75 million m³ of timber by 2020 to meet the raw material requirements of the Malaysian timber industry. Soft commodities accounted for RM112.43 billion of the country’s exports in year 2008, or 17 % of Malaysia’s total exports.

Malaysia Log Prices   Sarawak log, FOB US$ per m³ Meranti SQ up 226-250 ⇓ Small 210-241 ⇓ Super small 200-224 Keruing SQ up 216-228 Small 190-220 ⇑ Super small 166-196 ⇑ Kapur SQ up 206-231 Selangan Batu SQ up 178-215 Pen. Malaysia logs, domestic (SQ) US$ per m³ DR Meranti 231-250 Balau 297-326 Merbau 319-352 Rubberwood 47-81 ⇑ Keruing 214-230 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 (75×125 KD) 437-450 ⇓ Sepetir Boards 249-271 Sesendok 25,50mm 346-364 Kembang Semangkok 294-317 Malaysian Sawnwood, domestic US$ per m³ Balau (25&50mm,100mm+) 325-345 Merbau 570-509 ⇓ Kempas 50mmx (75,100 & 125mm) 260-300 Rubberwood 25x75x660mm up 197-247 ⇑ 50-75mm Sq. 238-270 ⇑ >75mm Sq. 260-289 ⇑ Malaysia Plywood Prices Malaysia ply MR BB/CC, FOB US$ per m³ 2.7mm 408-470 ⇓ 3mm 386-416 ⇓ 9mm & up 332-404 ⇓ Meranti ply BB/CC, domestic US$ per m³ 3mm 381-422 ⇓ 12-18mm 315-344 ⇓ Other Malaysia Panel Prices Malaysia, Other Panels, FOB US$ per m³ Particleboard Export 12mm & up 226-249 ⇓ Domestic 12mm & up 211-228 ⇓ MDF            Export 15-19mm 281-313 ⇓ Domestic 12-18mm 270-288 ⇓ Malaysia Added Value Product Prices Malaysia, Mouldings, FOB US$ per m³ Selagan Batu Decking 531-541 Red Meranti Mouldings 11×68/92mm x 7ft up Grade A 546-559 Grade B 499-508 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 551-583 Standard 536-554

Source : FORDAQFURNITURE (ITTO’s Tropical Timber Market Report)