Japan Wood Products Prices
16-31th October  2004

Japan Wood Products Prices

Dollar Exchange Rates of 22th Oct.  2004

Japan Yen 107.24 

Report From Japan

Return on domestic log production continues to decline 

According to a survey made by the Japan Real Estate Institute, prices for timberland and domestic logs for both industrial wood and fuel wood have steadily declined for 13 years since 1992. 

Pine prices have fallen for three straight years falling 11% in 2003 and 18% in 2002. The price for pine logs at Yen 2,401 per cubic metre is far lower than the prices back in 1955. Cedar log prices are also lower than the price of Yen 4,478 recorded in 1955. These log prices are net on truck at logging forn standard grade logs (top diameter of 20-22 cm and length of 3.65-4.0 meter). 

These prices exclude harvesting cost, which are for the timber owners.

Indonesia mulls ban on rough lumber export 

As of October 15, the Indonesia government planned to place a ban on the export of rough sawn lumber including railroad ties. This is to stop the out flow of rough sawn lumber for reprocessing in other countries. However, official documents on this ruling are not yet available so details of the ban are not clear.  

According to the trade the ban is on air-dried rough lumber of all species but kiln dried, finger jointed and molded lumber can be exported. Apparently the moisture content of kiln dry lumber must be less than 16%. S4S lumber is supposedly not affected but some shippers are confussed as to the situation regarding S4S lumber. 

Concrete formboard market bottoming out 

Trends in the market are rather difficult to discern at present as sales of the different panels vary by type of business of users. For tropical hardwood plywood, the market for 3x6 JAS concrete formboard seems to be bottoming out as inventories are balancing demand, some importers are asking higher prices. The prices in Tokyo regional market are Yen 870-880 per sheet delivered, about 10 yen up from September. 

Export prices from Malaysia are a minimum US$350 per cubic metre C&F for JAS 3x6 concrete formboard panel and, compared to the recent low, prices are rebounding a bit. For structural panel F 4star(prime category), prices remain unchanged at Yen 930-950 per sheet although dumping sales for inventory disposal as seen in September are no longer seen this month. 

Tropical floor baseboard prices weaker  

Export prices of 12 mm panel from Indonesia and Malaysia are firming as log prices are rising. The rain season is approaching in these countries so log production will be lower in coming months which could put more pressure on prices. JAS concrete formboard panels are especially scarce at the moment as production of Meranti logs, the raw material for these panels, is tight. Japanese importers have begun placing orders as inventories are dropping in Japan. 

Meanwhile export prices for floor baseboard and thin panels, which need good quality logs are reported by the Japan Lumber Report as on the softer side. Floor baseboard prices are US$450-470 per cubic metre C&F, US$10-20 lower than September. US$510-520 for thin 2.3 mm F 3star (category 2), about US$10 down. Prices for imported 3x6 concrete formboard for coating are said to be weakening to Yen 1,050-1,060 per sheet delivered Tokyo wholesalers.Finally, standard 12 mm tropical F 3star (2 nd grade/category 2) prices are Yen 880-900 per sheet delivered.  

New poplar LVL plant in China  

A new LVL plant, a joint venture between Japanese and Chinese, the Shanghai Toking Wood Products, started production running in September. Toyo plywood Co., Ltd. and three other Japanese companies participate in this business.  

The new plant is built right next to an existing plant. Fast growing Chinese poplar the raw material for the LVL and all the products are shipped to Japan. Toyo Plywood uses this LVL as a base material for its major product 'e-WOOD' Since poplar LVL is very competitively priced demand has been expanding rapidly in Japan.  

October Wholesale Prices

 For more information on the Japanese market please see www.n-mokuzai.com

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  Grade B faced and Grade C backed	MBF           1000 Board Feet
Plywood	MDF           Medium Density Fibreboard
BF         Board Foot	F.CFA         CFA Franc
Sq.Ft     Square Foot	Price has moved up or down

Source:ITTO