Prices hold steady as orders fall

The market situation for Myanmar teak and other non-teak hardwoods has not improved over the last fortnight. Some Indian buyers are shipping small quantities of teak and gurjan, but in comparison to ground stock in Yangon, the shipments have been minimal.As reported  buyers hoped that the Myanmar Timber Enterprise (MTE) might reduce its list price. Many buyers believe that the six month average prices and the last  list prices may have aggravated the situation. While in its 60 year history, MTE has not needed to reduce prices it has set, this may change due to the current effect of prices on traders. Some buyers do not expect the situation to turnaround soon. Analysts believe that MTE may need to rethink its pricing strategy to alleviate the plight of buyers and stockists (both foreign and domestic).Local sawmills in Yangon are reported to be facing difficulties due to high raw material prices and falling orders. Exports of sawn timber are also down. One representative from the industry noted that even if prices of raw materials are adjusted, it would still be difficult to run the sawmills, as there are no new orders from abroad. The only possible way that MTE may be able to avert future problems is to reduce felling in the current harvesting season, thereby reducing supply. Analysts admitted that it was not easy to anticipate this potential move by the MTE.