Japan Wood Products
Prices
Dollar Exchange Rates of
15th Feb 2011
Japan Yen 83.82
Reports From Japan
Bullish demand for tropical logs
According to the Japan Lumber Reports (JLR), log export
prices in Sabah and Sarak remain firm on the back of some
aggressive purchasing by China and India. As log supply
remains tight, there are no prospects for prices to ease.
At Tanjung Manis port in Sarawak, meranti regular log
export prices breached US$255 per cu.m FOB and inched
towards US$260 per cu.m, while small meranti log prices
gained US$5 per cu.m from December 2010 to US$240
per cu.m FOB. Prices at Bintulu port are getting closer to
those at Tanjung Manis port. In Sabah, log prices are
soaring for all species and grades. Log export prices at
Tawau port for mix serayah logs are at US$245 per cu.m
FOB and small serayah logs fetched US$230 per cu.m
FOB. Kapur and keruin prices also gained US$5 per cu.m
from December 2010, to US$285 and US$260-265 per
cu.m FOB respectively.
Log supply continues to be tight as a result of harvesting
limitations and delays in transportation to the ports. JLR
says that even some local plywood mills in Sarawak have
been forced to shut down temporarily due to the log
shortage. As a result of the delays, demurrage and total
shipping costs are now higher. Following hikes in November
2010 and January 2011, the revised freight costs are now at
US$47-48 per cu.m.
Log shortage pushes plywood prices up
The market for imported plywood is very firm following a
considerable increase in prices set by the largest plywood
supplier in Malaysia in January 2011. The bullish stance
on pricing is due to the shortage of logs which pushes
prices up. Importers have accepted the higher prices in the
face of the continuing tight supply and possible further
price hikes, although the higher prices may eventually
result in increased supply.
Prices for imported 3x6 concrete formboard are now Yen
930-940 per sheet delivered, up Yen 30 from January
2011. Prices for 3x6 coated concrete formboard are also
up Yen 30-40 at Yen 1,070 per sheet delivered.
12mm (F 4star, special) panel for foundations fetched Yen
970-980 per sheet delivered, up Yen 40 from January
2011. According to wholesalers, prices for 12mm panel
are shortly expected to exceed Yen 1,000 per sheet
delivered.
The JLR reports that thin and medium panels are tight in
supply with delayed arrivals. Wholesale prices for 2.4mm
thin plywood (F 4star, type 2) are now at Yen 320-330 per
sheet delivered and for 3.7mm medium plywood (F 4star,
type 2) at Yen 450-460 per sheet delivered.
2010 housing starts higher than in previous year
Total housing starts in Japan in 2010 were 813,126, up
3.1% from the record low in 2009, reports JLR. However,
housing starts in 2010 notably remained at the same low
levels as in 1964 and 1965.
Owner’s units and units built for sale showed some
improvement, but housing starts for rental units continue
to fall to below 300,000 units as in 1962 and 1963.
Wood frame units increased by 7% over 2009 accounting
for about 57% of the total housing starts, up 2 percentage
points from 2009.
The recovery in housing starts is concentred in populated
areas like the Tokyo metropolitan area where housing
starts jumped 30% over the previous year. The
government has undertaken various measures to stimulate
the housing sector in the country.
Wood use in public buildings improves sales of
domestic interior sawnwood
Ikemi Forestry Industrial Inc. specialises in producing
solid wood interior sawnwood made of domestic species
such as cedar and cypress.
Since the law promoting wood use in public buildings in
Japan came into effect on 1 October 2010, Ikemi’s interior
sawnwood orders have jumped. The company is now
planning to increase its production capacity by 20%.
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