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Dollar Exchange Rates of 21th October 2005 Japan Yen
115.72 Source:ITTO' Tropical Timber Market Report Traders agree on higher log prices At
the monthly meeting of the Tokyo Chapter of Japan Southsea Lumber
Conference held on 29 September, most of the species were priced higher
than in previous month by ¥200 per koku (koku=0.278 m3) and
rated as bullish. Log production remains tight in Indonesia and Malaysia
and prices are not likely to ease. Fuel price rises have also contributed
to increased logging and other costs. The
prices per koku of logs for plywood were quoted as follows: Sarawak ¥8,400-8,800;
Solomon ¥8,500-8,900; and PNG ¥8,600-8,900. They were rated ¥100-200
per koku higher than in previous month with some variation in the higher
and the lower price ends. Prices for logs for lumber: Sabah ¥12,200-12,600;
Apitonclane ¥11,500-11,900; and Melapi ¥11,000-11,800. Those were
also rated ¥100-200 per koku higher. Japanese log market shrinks 10% From
the beginning of the summer, the arrivals of imported plywood started to
decrease remarkably to 357,000 m3 in July, and a similar or
lower figure was expected in August. This decline in supply is unlike;y to
affect the mood of the market. Japan’s import of Southeast Asian logs
during January-July 2005 fell almost 3% against a year ago to 862,400 m3.
Demand also decreased nearly 9% to 889,800 m3 in the same
period while inventories reached 337,000 m3 at the end of July
(about 2.6 months of supply). The amount of logs shipped for plywood
production during January-July 2005 shrank 9.3% against the previous year
period to 797,600 m3. Overall estimates indicate that the
Japanese market has shrunk by about 10% in 2005. Malaysia is Japan’s leading
sawnwood supplier Total
Japanese import of Southeast Asian lumber products from January to July
2005 was 313,800 m3. This breaks down into 148,200 m3
of lumber products (hardwood plus softwood), and 165,600 m3 of
processed lumber (hardwood plus softwood). Both categories recorded
declines of 15% and 2.3%, respectively against the same period last year.
Lower imports from Indonesia, a major supplier, were the main reason for
the decline. Imports of lumber products from Indonesia fell sharply 29% to
59,200 m3 in January-July 2005 compared with imports from
Malaysia which surged 7% to 65,400 m3 surpassing those from
Indonesia. Demand‑driven Japanese plywood
market In
September, one of Japan’s largest and oldest plywood factories in
Shizuoka halted the manufacturing plywood. However, this has not affected
the market significantly indicating that the Japanese plywood market is
currently driven by demand rather than supply. Prices for concrete forming panel firming At last, hardwood plywood
market is turning around on tight supply of imported panels. Prices of
imported JAS 3x6 concrete forming panel, currently very scarce, are
gradually on the rise. Prices are quoted at 830 yen per sheet delivered
Tokyo, 10-20 yen per sheet higher than in September. The reason for the
upturn is low inventories as importers had been curtailing purchase of
panels due to a price gap between import costs and actual market sales
prices. Prices of Southeast
Asian hardwood structural panel F 4stars (prime category), also available
in low volume, surged 10-20 yen to about 860 yen per sheet delivered.
Imported thin panels are also facing tight supply. In contrast, prices for
domestic 12 mm softwood panel F 4stars (category 1) remain weak at 660-670
yen per sheet delivered Tokyo. Some wholesalers complain that in the
second half of October, some distributors have been dumping sales. Orders
for softwood thick panel seem to be coming in steadily but prices are
weak. The prices of 24 mm F 4stars (prime category) with T&G (Tongue
& Groove) are at 1,400 yen per sheet delivered while 28 mm of
the same grade are at 1,700 yen, unchanged from September. The slowdown in
new housing starts is reducing the demand for plywood, making price hikes
unlikely. September and October Wholesale
Prices
Japan prepares a wood procurement law Following the
conclusion of the G8 Summit at Gleneagles, Scotland last July, the
Japanese government plans to base its wood products procurement policy on
wood certified from stump to processor sourced from sustained yield
forests for both domestic and import materials. To be certified, one of
following will need to be furnished: 1.
A forest authentication issued by official certification bodies; 2.
A certificate authorized and issued by industrial groups; or 3.
A certificate issued by large corporation (private timber holding
companies) or local governments, certifying its wood or wood products. Once the Cabinet
approves the law the current fiscal year, government agencies are expected
to set up procurement programmes and start purchasing legally authorized
wood products from 2006. The main purpose of the law is to abolish the use
of illegally harvested timber by tracking the source. Steep hike in container freight rates Major container
liners have proposed higher bunker charge (BC) and adjustment factor (BAF).
On North American routes, BC for the last quarter of 2005 was set at
US$455 per 40’ container, 11% higher than in the previous quarter and
65.5% higher than earlier this year. On North European routes, BAF for
November was set at US$540 for 40’ container, up 143.2% (or US$318) from
February. This will have a bearing on the North American route BC for the
first quarter of 2006. The rate for that period is certain to go up
considerably since the rate for the European route is set ahead of the
rate for the North American route. EU companies promote products in
Japan In
mid-September, some 31 European companies held an exhibition of
construction materials and business meetings in Tokyo. The event was part
of the "EU Gateway to Japan," a campaign to promote trade
between Japan and the EU. The companies exhibited products such as
flooring, wood panels, wall panelling, marble, bricks and dampers for
earthquake resistance. Austria’s
Mitteramskogler GmbH introduced thermo-wood, a hardwood processed with
heat. With declining supply of tropical wood and increased opportunities
in the European market, the use of this material is expanding from
flooring and exterior use into furniture (garden furniture) and musical
instruments. Timberwise Oy from Finland displayed a 3-layer 4.5mm wood
flooring that can be used for floor heating. France’s Europlac Cabannes
SAS presented a 3.2mm flooring with a 0.6mm wood veneer surface. The
company’s wood flooring uses a unique “no-coating system” in which
installation is made without any glue. The company indicated that this
flooring is especially popular in the DIY market since it is easy to
install. Czech
Republic’s Agrop Nova introduced 3-layer and 5-layer solid wood panels.
Spruce wood is selected for interior use while larch is for exterior use.
Jures Medis from Lithuania promoted straight and curved beams. Estonia’s
Barrus Ltd. offered plywood made from red pine used for doors and window
frames. Muylle Facon from Belgium introduced paints that do not get soaked
into the wood and require only one-fourth of the normal amount. In
addition, its application saves time as the finished colour and coating
can be done at the same time. JHLC cuts interest rate for housing
loans Japan’s
Housing and Loan Corporation announced that the standard interest rate for
housing loans would be reduced from 3.23% to 3.19% from 4 October.
For more information on the Japanese market see www.n-mokuzai.com | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
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