Japan Wood Products
Prices
Dollar Exchange Rates of
30th November 2011
Japan Yen 77.96
Reports From Japan
Imports of plywood from China topped the agenda of
meeting between plywood suppliers and Japanese
importers
The annual meeting between the Japan Lumber Importers
Association (JLIA), the Japan Federation of Plywood
Manufacturers Association, the Indonesia Plywood
Association and the Malaysian Plywood Manufacturers
Association was recently concluded in Jakarta.
The focus of the meeting, reports the Japan Lumber
Reports (JLR), was the rapidly growing supply of plywood
from China and concerns for the quality and supply
capacity of Chinese plywood manufacturers.
Representatives from Malaysia requested Japanese
importers of Chinese made plywood to apply the same
quality, environmental and sustainability concerns which
Japanese importers have been asking of Malaysian and
Indonesian plywood suppliers.
On this issue representatives from Japan mentioned that
Chinese made plywood has had quality problems and that
sometimes even JAS stamped products were below the
required standard for JAS.
The meeting heard, says the JLR, that log supplies in
producer countries had been an issue for this year. firstly
because of floods and then drought which made river
transport difficult. It was a combination of these factors
which has pushed up log prices said participants at the
meeting.
The meeting was informed that the number of plywood
mills in Indonesia had dropped to less than 30 from the
peak of 130. The newly established mills were mainly in
Java and use plantation logs reports the JLR.
Japan’s Forestry Agency assess impact on timber
sector of Trans-Pacific Partnership
The Japanese government has signalled its interest in
participating in discussions on the Trans-Pacific
Partnership (TTP) and the Forestry Agency has assessed
the possible impact on the forest and wood products
industry in Japan should Japan decided to be a member of
the TPP.
The Forestry Agency pointed out, says the JLR, that
domestic manufacturers of plywood, lumber, laminated
lumber, particleboard and other wood products wouldl
face tough competition from foreign manufacturers as
goods would move to and from Japan duty free.
In particular, reports the JLR, the plywood industry would
face tough competition since imported plywood is subject
to an import duty. If the duty was withdrawn plywood
prices on the domestic market would drop threatening
domestic manufacturers.
There would also be an impact on domestic log suppliers
as log prices would fall because manufacturers would have
to minimize raw material costs to remain competitive.
This, says the Forestry Agency, would negatively affect
the economy and employment in rural areas.
According to the JLR the Forestry Agency has estimated
that the decline in value of domestic production could be
as high as Yen 50 billion and the impact on the forestry
sector could run to Yen 100 billion.
Weak demand provides little direction for plywood market
The JLR is reporting that at the end of November supplies
of imported thin, medium thin, special structural, and
concrete formboard plywood are tight and prices are
firming. However, demand is not strong enough to lift
prices significantly says the JLR.
The items for which demand is weak, says the JLR, are
Type one tropical structural hardwood plywood, North
American softwood and Chinese non-JAS products.
Tropical Type one structural panels flooded the market
after the March disaster and current inventories are
sufficient.
1
The price for 12 mm Tropical structural type one plywood
is about Yen 900 per sheet delivered in Tokyo. Prices for
Special type are about Yen 960-970 delivered. According
the JLR inventories of 9 mm Special type are low. Prices
for imported 2.4 mm type two thin panel are between Yen
360-370 per sheet delivered.
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