Japan Wood Products
Prices
Dollar Exchange Rates of
11th June 2010
Japan Yen 91.68
Reports From Japan
Increased plywood supply but trade remains cautious
The supply of plywood in Japan during April was 301,900 up 29% on March levels and nearly a third up on levels in April 2009, says the Japan lumber reports (JLR). Plywood imports rose notably from Indonesia and China and because domestic consumption rose, plywood inventories fell.
The JLR puts the increase in plywood supply during April down to both a delay in clearing some March arrivals and to arrivals of plywood under the 2010 preferential tariff arrangements.
Despite the apparent upswing in the plywood trade the JLR is reporting that the industry does not consider this as reflecting an improvement in the market and inventories remain low compared to levels in 2008.
The JLR is reporting that coated concrete formboard is in short supply so imports move immediately into the market.
Domestic plywood production increased again in April marking four consecutive months’ of increase.
Tropical plywood prices moving
Daishin Gouhan Koyyo Co. Ltd in Nigata Japan has been forced to raise the price for its plywood manufactured from imported logs. The JLR says the company has tried to maintain price levels but with soaring log costs and a sharp increase in adhesive costs, a price increase has become necessary.
Log costs have risen over recent months because of aggressive purchasing by China and India. Daishin apparently expects raw material costs to continue upwards and has given warning that further price increases for its tropical plywood may become necessary.
April housing starts
After 17 months of declining housing starts the figures for April show a modest (0.6%) increase. This turn-around is welcome news for the timber industry but as the JLR points out, housing start levels are still much lower than in 2008.
There are some grounds for optimism as the number of building permits issued has been increasing for the past six months and April permits were almost 11% up on levels in April 2009.
Meranti logs breach the US$200 level
Tropical log prices have been inching up in recent months and at long last Sarawak log exports have achieved the US$200 per cu.m for Meranti Regular logs that was their target, in fact current asking prices are closer to US$220 per cu.m.
Log availability in Sarawak is reportedly very tight because bad weather is hampering logging. Also, it is reported that some of the major suppliers are now moving into new concession areas which is disrupting the regular flow of logs.
Because log stocks are low in Sarawak, Japanese log importers have delayed sending vessels to load logs and the JLR says that the next loading could be as late as end June.
As log stocks are low and international demand is firm suppliers have been asking higher prices. For Japan, Small Meranti prices are at US$180 per cu.m FOB up US$4-5 per cu.m on levels in May. The JLR says prices of US$190 per cu.m will be seen soon.
In Japan, plywood mills are actively buying logs as plywood sales are improving slightly. Sarawak Meranti regular logs are priced at Yen 6,800 – 6,900 per Koku CIF, Yen 300 up on levels a month ago. Small Meranti log prices are at yen 5,800-5,900 per koku also up Yen 300 per koku on prices in May.
Demand for tropical hardwood logs by Japanese crating manufacturers has strengthened and this is another factor driving up log prices.
US supplying JAS and FSC Douglas fir
Demand for certified lumber is growing in Japan reports the JLR and this is giving a boost to US lumber exporters. Apparently many west coast US sawmills are increasing exports to Japan even in the face of rising US domestic log prices and higher ocean freight charges. To attract Japanese buyers US millers are now cutting metric sizes and are offering more kiln dried lumber.
Related News:
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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 |
|
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