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Japan
Wood Products Prices
Dollar
Exchange Rates of 29th June 2006
Japan
Yen 116.27
Reports
From Japan
Log prices escalate as supply worsens
The Japanese plywood market has been increasingly active supported by a robust building activity (see
below). Thin panel and floor base plywood are particularly short in supply and domestic manufacturers
of these panels are eagerly looking for logs. Meanwhile , FOB log prices continue to surge despite the appreciation
of the yen in May. However, late May price negotiations between plywood mills and log importers failed to reach
an agreement and were postponed for June. In the meantime, FOB prices continue to advance. The hope
that log production would improve after the end of the rainy season in Southeast Asia failed to materialize as
rains continued in the region. The fact is that production remains slow while demand exceeds supply.
Plywood imports resume downward trend
Japanese plywood imports resumed a downward trend in April, falling to 367,061 m3, down 9.4% from March
2006 and 14% from April last year. Just over 191,000 m3 came from Malaysia (down 11%) and 111,000 m3 from
Indonesia (down 20%). The import decline pulled total plywood supply down in Japan, felling to 638,000 m3,
down 6.7% from March 2006 and April 2005.
Prices of concrete-forming panel escalate
The declining availability of tropical plywood in Japan is pushing prices up. Prices for imported JAS 3x6
concrete-forming plywood continue to rise week after week. Importers reported that shipments for June were
largely delayed while those for July would be further reduced. Deliveries from Indonesia, in particular, are
shrinking rapidly while volume per contract is increasingly smaller. Dealers of concrete-forming panel
were eagerly securing any available volume, anticipating demand recovery after the rainy season is over in
mid-July.
Housing starts register third consecutive growth
Housing starts reached 111,260 units in April, up 15% from April last year and the third consecutive monthly
gain. Seasonally adjusted annual housing starts stood at 1,335,000 units. Wood based units were 46,220, up 1.7%
from April last year and the seventh consecutive monthly increase. Wooden units accounted for 41.5% of the total
housing starts in April. The general recovery of the economy and improved corporate performance continue
to encourage construction activity in the country, a trend that seems to persist in 2006.
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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
Plywood grades. Letter(s) on the left indicate
face veneer(s), those on the right backing veneer(s). Veneer grade
decreases in order B, BB, C, CC, etc. |
MBF
1000 Board Feet
|
|
Plywood |
MDF
Medium Density Fibreboard |
| BF
Board Foot |
F.CFA CFA Franc
|
| Sq.Ft
Square Foot |
PHND
Pin hole no defect grade |
| Hoppus ton 1.8 cubic
metres |
 
Price has moved up or down |
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