Japan Wood Products
Prices
Dollar Exchange Rates of
30th January 2010
Japan Yen 90.25
Reports From Japan
Wood in public buildings
The trade press in Japan has reported that the Minister of
Agriculture, Forestry and Fisheries intends to submit a Bill
intended to promote the use of wood in public buildings.
The purpose is to generate demand for wood products, one
of the priorities of the Ministry.
The Ministry has been active in encouraging the private
building sector to use more wood but it is expected that the
new legislation will result in a shift away from concrete
and steel and greater use of wood in public buildings
Demand projections
The Japan Lumber Reports is saying the Forestry Agency
in Japan has consulted with industry to prepare demand
projections for the first half of 2010. As the housing
market is expected to remain severely depressed, demand
for logs and lumber in the first half of the year are likely to
be lower than in the same period 2009.
Imported log and lumber volumes are projected to be low
in the first quarter but could be higher than the same
period 2009 simply because 2009 second quarter imports
were so low according to the Forestry Agency.
Demand for plywood and structural laminates in the first
quarter are forecast to be the same year on year but
demand could rise in the second quarter. Despite the
depressed demand imports of Russian logs and lumber are
expected to be higher than in the same period last year.
Russian log imports for the year are expected to be around
670,000 cu.m while imports of lumber could top 681,000
cu.m. If these projections are correct 2010 would be the
first year ever in which lumber imports from Russia
exceed log imports.
For N. American logs and lumber, demand will remain as
it is with little prospect of increases.
Tropical log prices firming
Due to pressure from suppliers tropical log prices in Japan
are firming say the JLR despite a weaker Yen. Traders are
reporting that prices have bottomed out and are moving
up. Prices for Sarawak Regular Meranti are at from Yen
6,3000 – 6,000 per koku CIF and Small Meranti is moving
at Yen 5,200 – 5,300 per koku CIF which is unchanged
from last month but the downward momentum of prices
has gone.
Plymills in Japan using tropical logs say they are
maintaining the production cuts but overall, the tropical
log consumption has crept up to above 45,000 cu.m and
mills are actively seeking log supplies. Log stocks at the
ports are said to be less than three months consumption.
The JLR says it seems that some mills have shifted away
from softwood logs and back to hardwoods for plywood
production as the softwood plywood market virtually
collapsed at the end of 2009.
According to the JLR, there are ‘chronic’ log shortages at
the ports in Malaysia due to poor weather which is
hampering transportation. This, in turn is driving up
asking prices.
Stagnant plywood consumption
The plywood market in Japan remains depressed but the
tight supply of imported plywood, particularly formboard,
may give domestic manufacturers the opportunity to
increase prices if and when end-users start to replace
inventories.
The JLR is reporting that JAS 3x6 concrete formboard is
selling at about Yen 600 per sheet up Yen 10 per sheet
from December. Some traders expected the market for
domestic plywood to improve in January but this did not
materialise. Currently wholesalers are buying to meet
immediate needs as they are concerned about the extent of
the so-called ‘dumping sales’ when prices fall further as
companies try to generate cash to close their books in
March.
Russian export duty saga continues
The JLR has reported that the Russian government has
once again postponed the implementation of the 80% duty
on log exports. Apparently the new target date for the duty
hike is now January 2011.
The duty is intended to stimulate domestic processing in
Russia but the JLR suggests that investment has been slow
hence postponement of the export duty increase.
Export duties on Russian logs have been increasing
gradually since 2007 and the current duty works out at
around 25%. After the 80% duty rate was announced
Japan’s plywood and lumber mills shifted to using N.
American and domestic logs and as a consequence imports
of Russian logs fell to be overtaken by lumber imports
from the same source.
Investment in Nanning
Reports have emerged that JK Holdings is to build a
plywood plant in China based on eucalyptus raw material.
JKHD principal activity is the wholesale marketing of
construction material as well as the production and
retailing of plywood and building materials.
The plant will apparently be located in Nanning the capital
of Guangxi Province. Nanning borders Vietnam, is
neighbour to Guangzhou, close to Hong Kong and Macau,
and South Asia. This advantageous location makes the city
a commercial and communication centre. Products are
expected to be marketed domestically in China and
eventually in Europe, the middle-east and in Japan.
For the full JLR report see: www.n-mokuzai.com/english.htm
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Abbreviations
| LM Loyale Merchant, a grade of log parcel |
Cu.m
Cubic Metre |
| QS Qualite Superieure |
Koku 0.278 Cu.m or 120BF |
| CI Choix Industriel
|
FFR
French Franc |
| CE
Choix Economique |
SQ
Sawmill Quality |
| CS Choix Supplimentaire |
SSQ
Select Sawmill Quality |
| FOB Free-on-Board |
FAS Sawnwood Grade First and |
| KD Kiln Dry |
Second |
| AD Air Dry |
WBP Water and Boil Proof |
| Boule A Log Sawn Through and Through |
MR
Moisture Resistant |
|
the boards from one log are bundled |
pc per piece |
|
together |
ea
each |
| BB/CC Plywood
grades. Letter(s) on the left indicate face veneer(s), those on the right backing
veneer(s). Veneer grade decreases in order B, BB, C, CC, etc. |
MBF 1000 Board Feet
|
|
Plywood |
MDF Medium
Density Fibreboard |
| BF Board Foot |
F.CFA
CFA Franc
|
| Sq.Ft Square
Foot |
PHND
Pin hole no defect grade |
| Hoppus ton 1.8 cubic metres |
  Price has moved up or down |
|
|
|
