Japan Wood Products Prices

16-31th March  2005

Dollar Exchange Rates of  25th March  2005

Japan Yen 106.36

Report From Japan

Exporters bullish   

The divergence in prices exporters are asking and the actual market prices in Japan is widening. In Indonesia, the shippers are asking for higher export prices because of rising adhesive and transportation cost brought by higher oil cost and this is on top of the problems of tight log supply.  

Export prices for tropical 2.3 mm thick F 4star (second category) are now around US$545-550 per cubic metre C&F. The market prices in Japan for this product are about Yen 290-300 per sheet delivered with dull movement and this equates to a price below the C&F price.  

The wholesale price in Japan of concrete formboard for coating (3x6) is around Yen 960-970 per sheet, some Yen 10-20 lower than a month ago. 

Firming export prices for OSB  

Japanese analysts say that export prices for OSB are likely to go higher because of strong North American market and rising ocean freight. Some suppliers say there is widening gap between the export prices and North American domestic market prices so they need to raise the export prices.  

The export prices for OSB for April shipment (9.5 mm 3x6) is US$310 per 1,000 sqft C&F, which is flat from March. Japanese demand continues slow but the market prices have remained unchanged from February. 

Plywood 

There is reportedly strong competition amongst softwood plywood dealers to reduce inventories and this is leading to some drastic price cuts in a very stagnant market. 12 mm domestic softwood ply is apparently the worst affected and prices in the Tokyo region are as low as Yen 780 per sheet delivered.  

Because of this plywood mills in the Seihoku group cut plywood production by 20% beginning  April. The cut will continue until prices for softwood structural panels stop falling. Specifically 12 mm standard plywood production will be reduced by 25-30%. Current prices for 12 mm F 4star (category 1) are Yen 780-800 per sheet and Seihoku's target is to raise this to Yen 820.  

A supply glut and weak demand are the main reasons for falling prices says the Japan Lumber Report. Softwood panel inventories at the end of January reportedly were nearly double that of a year ago. 

Dealers' comments are that it is possible to bring the prices up if the supply is reduced since the demand should improve after April. 

Imported tropical hardwood plywood prices just about holding flat while exporters are pushing for  higher prices. So far this year, arrivals of tropical plywood have been steady while the market in Japan is suffering from a lack of direction.  

Wholesale prices of Indonesian JAS 3x6 concrete formboard panels are Yen 840-860 per sheet, about 10 yen lower than a month ago. Tropical structural 12 mm panel F 4star (prime category) prices are unchanged at Yen 860-880.  

The supply had been tight until February but now there is reportedly ample supply while, at the same time, inquiries are slowing say analysts. The only item in tight supply is 2x6 concrete formboard panel for coating where prices are now about Yen 680 and firming. 

January plywood supply 

The total supply of plywood into the Japanese market in January was 702,000 cubic metres, 5.9% more than December 2004 and it was the highest since August last year. The domestic supply of standard plywood in January was 8.7% lower than December due to snow and cold weather in Japan while imports of  plywood increased to 453,000 cubic metres, 16% more than December 2004. 

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