Japan Wood Products Prices
16-31th August  2004

Japan Wood Products Prices

Dollar Exchange Rates of  20th August  2004

Japan Yen 109.27 

Report From Japan  

Imported plywood market  

The market for both domestic and imported 12 mm thick plywood, the most standard item on the market, is reported as dull. Inquiries for imported tropical hardwood JAS 3x6 concrete formboard  panels, structural panels for sheathing, standard 12 mm panels and domestic softwood structural panel are weak.  

This is putting importers in a tough spot since because they are carrying inventories of high cost panels and cannot pass on the costs to the consumers.

Indonesian concrete formboard  

Export prices of plywood from Malaysia are reported as firming while prices from Indonesia suppliers are said to be weakening. In Malaysia, log production is recovering but exporters are bullish because mills are said to be having healthy order book positions.  

On the other hand despite weak log supply in Indonesia the orders for plywood from the U.S.A. and from Middle East buyers have weakened so much that actually panel prices are weakening. Also  contracts for JAS concrete formboard panels from Japan remain rather low so, overall, export prices are on the weak side.  

Current export prices for Indonesian JAS concrete formboard 3x6 are US$365-370 per cubic metre C&F, US$10-15 lower than a month ago. The Japan Lumber Report says that there indications of some offers at US$360. 

Unchanged demand and supply of composite floor  

The supply and demand in Japan for composite flooring in the first half of this year was about the same as last year. With an increase in condominiums starts, consumption of composite flooring  expanded for this sector.  

Total production of composite flooring for the first half was 28,046,000  sq.m out of which standard items such as flooring base covered by sliced veneer with a thickness less than 1 mm took around 93% of the market, up just 4.1% on last year.  

Categorized by use, flooring for direct application without joist was 3,669,000 sq.m, 11.5% more. Flooring for heated floor systems increased 4,213,000 sq.m.  

So far for the year flooring manufacturers have, according to the Japan Lumber Report, being able to absorb the higher cost of raw materials such as plywood and adhesives and have not had to try and pass the increases on to consumers.  

To respond consumers' demand to have durable and harder wearing surfaces, the manufacturers have been modifying the coatings rather than using thicker veneers.  

Particleboard market steady 

The large home appliance manufacturers using decorative particleboard for kitchen cabinets and the major prefabricated house floor sheathing  report that orders for particleboard are steady and analysts say that this market situation is expected to continue and that there is a chance of a supply shortage.  

The Japann Lumber Report says that the most active demand is for double soundproof flooring. The supply of particleboard has ben affected by the temporary shutdown of Japan Novopan's Tsukuba plant and by Taihei Kogyo's particleboard plant.  

The prices for particleboard are up as prices for woodchips and other raw materials have climbed so the manufacturers have raised sales prices by about 10% since August. Analysts say that it may take a month or so until this price increase is fully accepted in the market. Domestic production of particleboard in June was 89,000 cubic metres, 2.8% more than May.  

Thin MDF in tight supply  

The trade is reporting that the supply of MDF is getting tight as orders from building materials manufacturers and household units makers have picked up. In western Japan, the market for thick MDF is reportedly brisk and domestic MDF producers are said to be carrying full order books and delivery dates have been extended.  The same situation exists for thin MDF (2.4 mm and 2.7 mm) in the Tokyo market.  

In Western Japan, thick MDF (18 mm and 21 mm) is in short supply and producers say that there are few mill stocks as the products are shipped out as soon as they are made. Producers think that this busy situation will continue throughout the balance of the year 

Imported MDF is also reportedly hard to get due to competition from other markets so importers are struggling to secure stock. In this positive market situation, both domestic and overseas MDF producers have increased prices by more than 10% since August.  All say the price  increase was necessary because the costs of adhesives and wood chips are up.  

12 mm panel prices ease  

The plywood market in Japan has been very quiet during August as the holidays become the priority. There has been little active trading in the wholesale channels and any dealings were apparently limited for short covering of stocks.  

The market for tropical hardwood panels and domestic softwood structural panels has been dull and the prices have been gradually softening especially for 12 mm panels such as imported 3x6 concrete formboard. Port inventories of imported JAS 3x6 concrete formboard are reportedly increasing.  

Domestic market prices are Yen 870-880 yen per sheet delivered for domestically made softwood structural panel (12 mm thick F 4star type 1), Yen 10-20 lower than a month ago.  

Softwood structural panels, such as thick 24 mm and 28 mm, continue to move well to builders and the supply is reportedly on the tight side but prices are already at their upper limit says the Japan Lumber Report.The for 24 mm F 4star T&G premium grade are Yen 1,950-2,000 and for 28 mm they are are Yen 2,250-2,300, both are unchanged from last month.  

 There are said to be ample inventories of imported tropical structural panels so prices are weakening. 

Tropical hardwood structural panels (F4star premium grade) are traded at about Yen 950-980 per sheet,Yen  30-50 yen lower than in July. Prices for tropical Standard panels ( 12 mm type 2 second grade F 3star tm) are reported as down to Yen 820-880.  

For more information on the Japanese market please

see www.n-mokuzai.com

August Wholesale Prices

Source:ITTO