In last three months Okoume supply has been very slow in India due to weaker demand in plywood industry in the market. The Face Veneer suppliers and buyers both have not been very optimistic for new consignments coming from Gabon. On the contrary, Face Veneer from Burma, Indonesia and Malaysia has noted to increase to India since last three-four months.
The reason for this increase for the Gurjan face veneer consignments has been noted due to easy availability of timber and relaxation by the timber supply authorities and governments from these countries for peeling units. The supply has also increased because there have been very few takers of ‘Garjan’ logs during last year that prompted the timber supplying companies to reduce the log prices, that’s why the peeling units have once again started functioning for Gurjan face.
The reduction in Gurjan face prices are reported to 15 to 20% during May, June and July. The Indian face traders have been under impression that once the Gurjan face is available at lesser price, Indian market will once again start using Garjan face veneer. Besides, the supplies from Gabon has been very low because of increasing prices of Okoume timber in Gabon due to already stocked materials during May, June and July months.
Both the scenario indicates that upon during August, September face traders did not order fresh material from Gabon. The Gabon based face veneer manufacturers also conformed to the Ply Reporter that the fresh order during August and September has been at its bottom level. Last year the consignment from Gabon had touched around 350 containers during August and September was fallen to approx 200 containers. The Ply Reporter market survey in Yamunanager and UP indicates that the traders of face veneers are keeping upon a very less inventory of Okoume face veneer.
The assumption has been largely because of the easy availability of Gurjan face in China, Malaysia, Burma and Indonesia. The assumption of cheaper Gurjan availability has also detrimental for local factory manufacturers who have started placing smaller order of Okoume face veneer, though Indian market has already evolved and has accepted Okoume face as a genuine substitute for Gurjan.
The market survey of the Ply Reporter during the month of September clearly found that the traders, who are buying Okoume are not very sad or unsatisfied with Okoume, instead they are seeking that the Okoume prices are less they can use, buy and sell Okoume face plywood only. Speaking to different manufacturing clusters in North India it was found that face veneer stocks are 50% lower than that being used in normal days. The possibilities in coming December and January that there could be a shortage of Okoume face and Okoume face veneer, because the inventory of Okoume is very less.
If the demand improves, because of already flooded situation a fresh demand during January and February will definitely come, then the face veneer prices is not going to take much longer time to shoot-up again.