Japan Wood Products Prices
16-30th June  2004

Japan Wood Products Prices

Dollar Exchange Rates of  25th June  2004

Japan Yen 107.65 

Report From Japan  

Double digit decline in tropical log import  

The Japan South Sea Lumber Conference has revised its demand projections for tropical log imports for 2004 to 1,619,000 cubic metres, which is 14% lower than consumption in 2003. The projection for logs for plywood imports is 1,443,000 cubic metres, 15% down and that for logs for  tropical lumber, 176,000 cubic metres, a decline of 2.4% on 2003.  

Domestic plywood manufacturers are now using more softwood logs such as Russian larch and domestic cedar to produce plywood. Tropical lumber demand is declining especially in house construction where imported laminated lumber and pvc products are replacing hardwood lumber. The declining availability of high quality logs and the higher prices demanded for logs has meant that demand has fallen in Japan.

Upward projection on North American log and lumber

In contrast to the tropical timber situation the Japan North American Lumber Conference has revised upwards its projections of demand for North American logs and lumber for 2004.  As imports in the first quarter were much higher than expected, projections for the year are higher. The demand projection for logs is 3,897,000 cubic metres, 1.9% more than last year and for lumber the projection is for imports of 3,942,000 cubic metres, and 2.7% up on 2004.

Imported board and plywood market  

The cost of imported plywood and other panels is rising due to firm export prices and the weakening Yen/Dollar exchange rate, at the same time demand in Japan remains rather subdued. The Japan Lumber Report says that there have been some speculative purchases by importers in anticipation of even higher costs in the future. Some importers say that they are hesitant to sell what they have on hand as they would rather hold stock anticipating that prices will be higher in the future.  

Tropical Structural Panel Prices Hit Yen 1,000  

The market for imported JAS concrete formboard is inactive inquiries but other 12 mm plywood products are reported as moving actively particularly as the supply of tropical structural panels as well as standard panels declined.  Analysts say that supply and demand are now balanced; however prices are rising because the supply is said to be getting tight.  

Tropical structural F 4Star panel prices are up to Yen 990-1,000 per sheet delivered Tokyo dealers, 50-60 yen higher than a month ago. The recent low price was Yen 850, so a jump of Yen 140-150 and firming is significant. The prices for 3x6 concrete formboard for coating are around Yen 1,080-1,100 yen delivered, 30-50 yen up and some say Yen 1,150 has been seen.

Tropical thin panels, 2.4 mm panel F4Star is at Yen 290-320 per sheet, 10 yen up. Traders report that in recent exchanges, export prices from Indonesia and Malaysia seem to have peaked and are leveling off.  

Domestic Makers Up Prices Again  

Seihoku plywood companies have announced another price increase on domestic plywood as of June 17.  The new price for 12 mm softwood structural panel is Yen 940 per sheet delivered, Yen 20 up and for 12 mm hardwood concrete formboard panel the price is Yen 970, Yen 20 up.  

The reason for the increase is the higher cost of logs such as Russian larch. Softwood log inventories in Japan are said, by the JLR, to be improving compared to extreme low levels seen in February and March, but the log costs remain high. There is brisk demand being reported for thick softwood panels and some mills have reduced production of 12 mm panels.  

Tropical hardwood log prices are but there are good orders for hardwood concrete formboard  panels. Because imports of these items have fallen, domestic mills are bullish with strong order book balances.  

Eidai developed lightweight PB  

Eidai Co., Ltd has reportedly succeeded in developing a new type of particleboard which has the same performance as regular panels but is 30% lighter. The problem of water resistance has been solved but particleboard remains a very heavy item. The company studied the arrangement of the wood chip and developed longer thinner chips to make the new product.

Japanese Cypress Processed in China  

Maruu Wood Marketing and Katsura Mokuzai Shoten apparently ship cypress boards to China for processing into interior furnishing products which will be shipped back to Japan. Trial shipments have been made of wall panels. Monthly production of about 3,300 square meters is planned.  

The company says that demand for high grade cypress post has been declining as a result of fewer Japanese style rooms being built into new houses so supplying Cypress interior items is a way for the company to diversify.  

Price hike of composite floor 

Due to the price increases for imported plywood, composite floor manufacturers have been forced to increase sales prices. The prices of floor base plywood has jumped by 35% since late last year and the cost of other materials, such as adhesive, have also increased pushing up manufacturing costs.  

Logs For Plywood Manufacturing      

For more information on the Japanese market please

see www.n-mokuzai.com

Wholesale Panel Prices June