Japan Wood Products Prices

16-30th April  2005

Dollar Exchange Rates of  22th April  2005

Japan Yen 106

Report From Japan

Government policy guideline on housing  

Japan's Ministry of Land, Infrastructure and Transport has released guidelines on future housing policy the main elements are as follows:  

·         There is a 1.5 million unit deficit in earth quake proof house, this is around 25% of the total housing stock. The ministry estimates that it will take about 15 years to achieve the target of having 90% quakeproof units. 

·         The proportion of current homes that meet the new energy saving standards is a low of just 23% (2003) and the target is to bring this up to 50% of all newly built by 2008.  

·         To promote barrier-free housing units with handrails, flat and level accesses and hallways of more than 80 cm width.  The target is to have at least 20% of the total housing stock meet this requirement by 2015. 

·         To establishing guideline of house performance standard. 

In addition, the policy is to increase the trade of used houses to 300,000 units annually by 2015 (in 2003 only 175,000 units were traded). 

Timber tracking system 

The Japanese government has decided to set up a system to keep track of the movement of wood products it imports. 

The purpose is to help address the illegal harvesting and trade in illegally sourced wood products. 

As one of the largest wood products importing countries, Japan will reportedly  proposal an international framework to address these issues. 

The objective is to ensure that Japan does not import any wood product from illegally harvested logs for government use. 

A tracking system is envisioned that will allow recording of harvest location name of logger and the subsequent distribution route.  

2004 Increase in Russian logs use 

The Ministry of Agriculture, Forestry and Fisheries has released plywood market statistics for 2004. The number of mills producing standard and specialty plywood and veneer in 2004 was 286, six less than 2003. Log consumption for plywood by these mills increased by 9.7% to 5,389,000 cubic metres in 2004, which was the third year in a row that consumption was up. In 2004 only Russian log imports increased. Due to higher FOB prices and increased ocean freight costs, New Zealand radiata pine logs lost its competitive edge allowing Russian larch to firmly establish its place in plywood industry. 

Drop in 2004 plywood imports  

Because of the higher production for logs and higher transportation and adhesive costs, plywood suppliers in Indonesia and Malaysia could not reduce prices.  On top of this  then the yen weakened and plywood market was stagnant. Under these circumstances Japanese buyers could not commit to buy the high cost imported plywood.  

More cuts in production 

Plywood mills under the Seihoku group have been reduced plywood production by 20% since April 1. The group announced that it would continue cutting back on production throughout May.

 Logs For Plywood Manufacturing      

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