Commodity Trading on the International Market-Huge differences in imported timber prices |09 November 2007

Pine timber was imported and retailed by Bodco, Seychelles Marketing Board and Dan Import & Export of Beau Vallon.
The 4x4 (inches) was being sold at R36.15 a metre at the (SMB), and R49.50 at Dan’s. Bodco was selling the 4x4 at R61.45 a metre.

SMB sold the 2x2 (inches) at R15.75 a metre. The 2x2 was being sold at R23.50 a metre at Dan’s.

Price differences were almost double for other timber sizes as well, such as the 9x1, 6x2 and 3x2. Bodco was charging R60.55 for a metre of 9x1 (inches) of the pine timber, compared to SMB’s R36.15 a metre.

Some of the prices of SMB’s new consignment of timber now on sale are R16.20 (2x2), R42.50 (4x4), R56.70 (6x2), R42.50 (9x1).   
SMB is by far the largest importer of timber in the country.
All the timber imported by the three companies came from South Africa.

Crude oil prices closing in on 100-dollar barrel

Oil prices have risen to a record high above $98 a barrel, amid concerns over tight fuel stocks and a weak United States dollar.

Oil prices fell $2 a barrel on Monday as investors worried that economic growth could slow in the US and curb demand for fuel, but soon resumed their seemingly remorseless climb towards the $100 mark.

The latest rise was triggered by a combination of the weak dollar, an attack on an oil pipeline in the Yemen and fears of fresh volatility in the Middle East after a series of deadly bombings in Afghanistan.

The focus now was on the latest snapshot of US crude oil reserves expected on Wednesday.
Analysts expect the stocks to have fallen by more than 1.5 million barrels in the past week, because of disruptions to short-haul Mexican shipments.

In remarks released ahead of the weekly inventory figures, the US Energy Information Administration said it expected US crude consumption to rise next year despite higher prices.

On the other hand, it expects inventories to have been depleted by about 11 million barrels by the end of the first quarter.
"Rising oil consumption and the realization that additional Opec production may not be sufficient to arrest the inventory decline are keeping markets firm," it noted.

Analysts said they expected the market to remain febrile as prices neared $100.
"But the overall market sentiment is still bullish and prices appear to be on an uptrend towards the $100 mark," said Victor Shum, from energy consultancy Purvin and Gertz.

Fuel prices

As at 08th November 2007

Petrol (bennzin)    R5.21 a litre c.i.f    

Diesel                      R5.76 a litre c.i.f