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Dollar Exchange Rates of 23th September 2005 Japan
Yen 112.42 Sales
prices went up in late August The
price gap between Japanese log importers and plywood mills has been
usually wide this year. But in late August, importers were able to push
the sales prices up close to their cost. Importers had been asking price
rises attributed to the surge in FOB prices which has been resisted by
plywood mills plagued by a weak domestic plywood market.
Agreed prices were about 6,700 yen per koku CIF (koku=0.278 m3)
for logs which arrived in July versus the importers’ proposal of 7,000
yen (a 200-300 yen gap). Plywood
mills tried to reduce log cost by increasing the use of small meranti
instead of regular meranti or by seeking low‑cost logs elsewhere
(e.g. Sabah), which turned out to be unsuccessful. The costs of materials
such as adhesives have also gone up while plywood sales remain dull.
Ocean freight continues to firm and further hikes are likely due to
rising oil prices. Plywood mills are struggling to secure low FOB prices
for logs before the rainy season starts in November. August
and September Wholesale Prices
Prices
level off in September FOB
prices seemed to peak and levelled off in September, although the supply
of yellow meranti, keruing and kapur is tight.
Importers are resisting new price rises so further price hikes have
temporarily stopped. Sarawak meranti regular prices are about US$170-173
per m3 FOB. Prices for small Meranti prices are about $139-140
per m3, keruing at $210 per m3 and kapur at $195 per
m3. These are unchanged from August. Relapse
of the plywood market in September The
signs of recovery in plywood demand in late August did not last long and
market went quiet again in September. There was only some demand in the
builders and precut plant sector. Since September was book closing for
mid‑term account settlement, some dealers were selling inventories
at low prices. Meantime, plywood manufacturers were trying to stop the
downward price trend. Seihoku group, the largest manufacturing group,
decided to reduce 12 mm standard softwood production while increasing the
production of structural long panels (3x8, 3x9 and 3x10) and thick panels
(24 and 28 mm thick). Seihoku intends to raise the prices of 12 mm
structural softwood panel delivered Tokyo. Plywood
supply and trade slumped in July Total
supply of plywood in July was 640,000 m3,
down 3.7% from June and lower than 650,000 m3
for the first time in four months. Imports of plywood in July were
350,000 m3, down almost 11% from June and the lowest since
March 2005. High export prices of South East
Asian products and depressed plywood market in Japan contributed to the
import decline. In
addition, port inventories of imported plywood have gradually been
declining while some items are getting short. Availability of thin panel,
in particular, is tight and importers are trying to procure it from
Indonesia and Malaysia. The prices of thin panel are firming with 2.4 mm F
4star (category 2) at about 300 yen per sheet delivered to Tokyo area. The
inventories of JAS 3x6 concrete forming panel are also dropping but
inquiries are limited and prices continue to soften at about 800- 810 yen
per sheet delivered. As
a result of lower imports, domestic production of standard plywood was
280,400 m3
in July, the highest so far this year. Softwood plywood production
accounted for 198,000 m3 of
this production, close to the record 205,000 m3 level in
March 2005.
Koku=0.278
m3
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