Japan Wood Products
Prices
Dollar Exchange Rates of
14th February 2010
Japan Yen 90.25
Reports From Japan
Sawlog trade 2009
Log consumption for lumber production in 2009 has been
estimated at 15.4 mil cu.m, 13% less than in 2008. Double
digit declines were reported for both imported and
domestic logs destined for lumber mills. The following
table provides and overview of the sawlog and lumber
trade for 2009.
2009 housing starts
Housing starts in 2009 were 27.9% lower than in 2008 at
just 787,410 units. This was the lowest level recorded for
45 years.
The greatest decline was seen in the number of
condominium units built in 2009, these were down a
massive 58% on 2008 levels.
Hardwood plywood market
Malaysian plywood suppliers decided not to accept the
low price offers being made by buyers for the Japanese
market and thus did not ship any plywood to Japan in
January. This caused some panic in the market says the
Japan Lumber Report (JLR) as companies found
inventories at very low levels.
The current price for JAS concrete formboard is now Yen
38,000 per cu.m according to the JLR, this is some Yen
2,000 per cu.m higher than in November and December.
This price per cubic metre translates to a panel cost of
about Yen 870-880 delivered but the current wholesale
price is only Yen820-830 per sheet.
With inventories still in decline the price of imported
plywood will inevitably rise.
Plywood consumption in 2009
Total consumption of plywood in 2009 was 5,140,000
cubic metres down 16.5% on 2008, the lowest for 41 years
according to the JLR. Imported plywood was particularly
hard hit dropping just over 20% while consumption of
domestic plywood fell slightly less at about 12%. The
depressed state of the plywood sector is mainly as a result
of the collapse in house building across Japan.
The following table provides details of consumption and
sources of supply.
Tropical logs
The sentiment in the trade, according to the JLR, is that
the tropical log market has seen the bottom of price
declines and that an upward movement in prices should be
observed from February. Japan’s plywood manufacturers
were active in the log market and were stocking up in
advance of the Chinese New Year Holidays which always
slows log harvesting and transportation, especially in
Malaysia.
Plywood mills in Japan are still running well below
capacity (70-80%) so monthly consumption of tropical
logs is only around 45,000 and average inventories are
said to be just under 3 months stock.
Market prices in early February were Yen 5,900 – 6,000
per koku CIF for Sarawak Regular Meranti and Yen 4,900
– 5,000 for Small Meranti. These price levels, says the
JLR, reflect the bottom of the market.
Log export prices in Sabah and Sarawak are firming as log
supplies are tight. Log arrivals at Tanjonmani, the main
log depot in Sarawak, are being delayed due to poor
weather conditions. FOB prices are at around US$185 for
Meranti regular and US$145 for small Meranti. Kapur
prices are high and firming due to strong active purchasing
by India and China. The latest price for Kapur was said to
have reached US$260 per cubic metre for logs from
Sarawak while logs from Sabah have been selling at
around US$245 per cubic metre.
For the full JLR report see: www.n-mokuzai.com/english.htm
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