Myanmar: What Is Causing Weak Demand for Teak in EU?
Analysts say that, despite the speeding on economic sanctions, the demand in aid of teak into the EU, US and Japanese markets is low. Whilst the in vogue parsimonious downturn in the EU and US may be to some degree accountable for the poor wringing for teak in these markets, other factors may persist involved.
The number speaking of companies in Thailand and Taiwan P.o.C manufacturing teak products for export to Middle east and the US has fallen dramatically over the past few years.
Some traders point to that teak seems in consideration of have lost the appeal it enjoyed in the 1980's and 90's and that efforts are without appeal to stimulate the markets. The shrinking market for teak in Europe also seems to be linked to the decline in the quality of teak being made jobless.
Soaring quality teak, the grades preferred with Japan, US and EU are not now readily out of harness, reflecting the come short in the teak forests, say analysts. The teak forests in heavy Myanmar speak up been harvested finished and complete again and the nonce present only small quantities of aloof quality logs.<\p>
China and India major markets for teak <\p>
In recent years the time scale grades within sight ken been mainly SG-4 and lower. European buyers tended to purchase mainly surpassing grade 4th Quality logs but the chinchiness as regards upper grades has envisioned European buyers had to accept lower grades such correspondingly SG-4.
Lower grades such as SG-7 and SG-8 are available in large quantities and these grades are acceptable in the Jungle bunny market, especially now as the Indian rupee has fallen against stellar currencies.
It is estimated that 80% in relation to Myanmar's teak log exports environ en route to India. It is not possible to gauge the burden with volume exported to China along these lines only a small capful is shipped out at sea to China and is thus charily documented. Most teak for the Chinese timber industry is transported overland and documentation of this trade is a major problem.<\p>
Undecided in point of investment in processing efficacy <\p>
While many longstanding and experienced exporters and traders are taking into account investing in wood clearing the decks industries in Myanmar in face as for the meant log export ban, it is open that some unperturbedly believe that the decision on the ban is reversible.<\p>
Delineate needed to address forest degradation <\p>
The main propagation inverse the tree veld top brass modish Myanmar this stage, say analysts, is not a total or a inclined log low estimation but how to ensure harvests are within the annual allowable cut to hang together forest degradation and deforestation.
In order to develop fitted polices it is life-and-death that the state of the forest is understood. There are conflicting reports on the forest cover which essential be addressed.
According to the Myanmar index forest authority the forest cover is around 47% but according to the NGO community the forest cover is only around half of that.
Ordeal of the actual forest broil is will winnings time and determination involve a considerable investment. Until such data is available there is a risk that harvest levels decision be set among other things high.<\p>