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Dollar
Exchange Rates of 7th September 2005
Japan
Yen 111.10
Report from Japan
July
housing starts hit a 7-year high
Total housing starts were 115,343 units in July, up 5.6% from June
(109,184 units) and 8.3% in the year to July. This is the fourth expansion
in a row and the highest in more than seven years. The positive news
contrasted with figures showing a 1.1% contraction in July industrial
production, compared with June.
Imports
from Malaysia expand in June
According to trade statistics published by Japan Plywood Manufacturers’
Association, Japan’s imports of plywood (the aggregate of regular
plywood, special plywood and blockboards, etc.) decreased in June for the
fourth month in a row. Plywood imports fell to 401,000 m3 in
June, down 2.6% against a year ago. However imports from Malaysia,
Japan’s largest plywood supplier, increased over 20% to 192,000 m3.
In contrast, imports from Indonesia continued to decline consecutively in
the past nine months to 159,000 m3 in June, down almost 20%
from June last year. Imports from China, which were increasing, eased
slightly 0.3% to 38,000 m3 in June 2005.
Total
plywood imports from Malaysia reached 1.15m m3 in the period
from January to June 2005, up 16% from 2004. Malaysia’s market share in
Japan grew to nearly 47% while Indonesia’s shrank to less than 43%
(1.04m m3). Plywood imports from China increased by 26% to
193,000 m3 during the same period.
Prices
for logs and sawnwood remained firm
The South-east Asian sawnwood situation remained unchanged. Although
prices of Sarawak products were firm, those for low‑grade sawnwood
may stall as China buys growing amount of cheap PNG lumber.
Hardwood
prices are soaring as India, Thailand, and China are very actively buying.
In Sabah, prices for logs have risen so high that manufacturers are
reluctant to accept prices offered by Japan for seraya products. As for
Indonesian lumber, prices of scarce products in the Japanese market such
as agathis or perupok are strong.
Mortgage
interest rate increased The
Government Housing Loan Corporation announced on 5 September that the
standard interest rate for housing loans for those who apply from 5
September 2005 would be increased from 3.08% to 3.23%.
Softwood
plywood inventories tightening
Although the market was inactive in July, inventory of finished products
decreased, especially that of softwood plywood. As factory production fell
by 30% in August due to the summer holiday, inventories have further
decreased. Prices for coated plywood for concrete form, the domestic
production of which has fallen significantly, as well as structural
softwood plywood (12mm 3x6’), for which price recently dropped below
cost, bounced back by ¥10‑20 per sheet. Prices for thick
softwood plywood are more stable. However, orders for new contracts are
likely to decrease from September as will the number of arrivals.
August
and September Wholesale Prices
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August
|
Septemb.
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Indonesian
Plywood
|
Size
(mm)
|
(¥/sheet)
|
|
2.3mm
(thin plywood, F 4star, type 2 )
|
920
X 1830
|
290
|
|
300
|
|
|
3.7mm
(med. thickness, F
4star, type1)
|
910
X 1820
|
430
|
|
430
|
|
|
5.2mm
(med. thickness, F 4star, type 1)
|
910
X 1820
|
540
|
|
540
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|
|
12mm
for sheathing (F 3star, type 2)
|
910
X 1820
|
800
|
|
830
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|
|
12mm
for foundation (F 4star, special)
|
910
X 1820
|
850
|
|
850
|
|
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12mm
concrete-form ply (JAS)
|
900
X 1800
|
820
|
|
810
|
|
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11.5mm
flooring board
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945
X 1840
|
1100
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|
1100
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3.6mm
baseboard for overlays (OVL)
|
1230
X 2440
|
780
|
|
780
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5.2mm
for packing
|
1230
X 2440
|
830
|
|
830
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|
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8.5mm
for packing
|
1230
X 2440
|
1080
|
|
1080
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|
|
Malaysian
Plywood
|
|
|
|
|
|
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2.3mm
(thin plywood, F 4star, type 2)
|
920
X 1830
|
290
|
|
300
|
|
|
3.6mm
(med. thickness, F 4star, type1)
|
910
X 1820
|
430
|
|
430
|
|
|
5.2mm
(med. thickness, F 4star, type 1)
|
910
X 1820
|
540
|
|
540
|
|
|
12mm
for sheathing (F 3star, type 2)
|
910
X 1820
|
800
|
|
830
|
|
|
12mm
for foundation (F 4 star, special)
|
910
X 1820
|
850
|
|
850
|
|
|
11.5mm
concrete-form ply (JAS)
|
900
X 1800
|
820
|
|
810
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|
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11.5mm
flooring board
|
945
X 1840
|
1100
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1100
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|
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3.6mm
baseboard for overlays (OVL)
|
1230
X 2440
|
780
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|
780
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Softwood
Plywood (Canadian CSP)
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|
|
|
|
|
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9.5mm
foundation of wall (JAS)
|
1220
X 2440
|
1500
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|
1500
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|
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12.5mm
sheathing (T&G JAS)
|
606
X 2273
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1050
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1030
|
|
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15.5mm
foundation (T&G JAS)
|
1220
X 2440
|
2500
|
|
2500
|
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|
18.5mm
foundation (T&G JAS)
|
1220
X 2440
|
2850
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2850
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Particleboard
(Indonesian)
|
|
|
|
|
|
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12mm
for woodworking
|
910
X 1820
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n/a
|
|
n/a
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|
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15mm
for woodworking
|
910
X 1820
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n/a
|
|
n/a
|
|
|
OSB
(North American)
|
|
|
|
|
|
|
12mm
foundation of roof (JAS)
|
910
X 1820
|
980
|
|
980
|
|
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9.5mm
foundation for 2 by 4 (JAS)
|
910
X 2440
|
1020
|
|
1020
|
|
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9.5mm
conventional foundation (JAS)
|
910
X 2730
|
1280
|
|
1280
|
|
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9.5mm
conventional foundation (JAS)
|
910
X 3030
|
1370
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1370
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Biggest
plywood company reduces production
The
biggest plywood manufacturing company in Japan decided to reduce
production of domestic softwood plywood by 20% in August. Although
inventories are gradually decreasing due to the cut in production which
started from April this year, the price of softwood plywood is still weak.
Prices for larch logs, the main plywood material, firmed, so manufacturers
are compelled to accept the raised costs.
Like tropical plywood, softwood plywood is facing dull business in
Japan due to low consumer spending. Japanese household
spending fell 4% in nominal terms in the year to July, the sixth
consecutive monthly decline.
It
is becoming increasingly difficult for shippers in plywood exporting
countries to secure logs and absorb raised prices of materials such as
glues and adhesives. It is becoming particularly difficult to obtain
high‑quality logs and this has caused delay in producing thin and
middle thick plywood. The prices of those items in Japan are likely to
climb in the future as this situation exacerbates.
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Logs
for Ply Manufacture, CIF
Meranti
(Hill, Sarawak)
Medium Mixed
STD Mixed
Small Log (SM60%, SSM40%)
Taun,
Calophyllum
and others (PNG)
Mixed
Light Hardwood,
G3-G5 grade (PNG)
Okoumé
(Gabon)
Keruing
MQ & up (Sarawak)
Kapur
MQ & up (Sarawak)
|
Yen
per Koku
6,450
6,550
5,400
5,200
4,500
7,000
7,700
7,100
|
Koku=0.278
m3
|
Logs
for Sawmilling, CIF
Melapi
(Sarawak) High Select
Agathis
(Sarawak) High Select
|
Yen
per Koku
8,800
8,600
|
|
Lumber,
FOB
White
Seraya (Sabah)
24x150mm, 4m 1st grade
Mixed
Seraya, Sangi
24x48mm, 1.8-4m, S2S
|
Yen
per Koku
105,000
43,500
|
Koku=0.278
m3
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