Teak logs sustains robust demand

Demand continued to be strong for teak logs.

Teak prices remained firm throughout 2006 and during the first six months of 2007. The annual sale of teak logs by tender was about 33,000 Hoppus tons in 2006, while the direct sales against Myanmar Timber Enterprise (MTE) list price were estimated to be more than 200,000 Hoppus tons. While the tonnage sold monthly by tender was comparatively small, the tender average prices had a significant influence on the teak market.

When teak logs obtained from direct sale contracts had been traded in the market, the resale prices were adjusted similarly. MTE could increase its direct sale prices to suit the trend.

Demand for sawn teak was also strong.

With a smaller quantity being made available to the saw-millers in Myanmar, the quantity exported had been quite the reverse. Interested parties maintain that now is a good chance to add impetus to the development of the Myanmar wood industry by supplying more industrial raw logs.