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Japan
Wood Products Prices
Dollar
Exchange Rates of 13th Oct. 2006
Japan
Yen 119.87
Reports
From Japan
C&F plywood prices hit new record highs in Japan
Unconfirmed reports that a leading Malaysian supplier of 12mm plywood had recently stopped accepting orders
have exerted some pressure on prices. The reports added that price leadership might have been virtually shifted to
Indonesian plywood. This has contributed to some of the
plywood price hikes seen since mid-2006. The slow down in Indonesian production during the Ramadan fasting
period has put added pressure on prices. In September, floor base panel 3’x6’ prices hit $700 per m3 C&F (to
Japan from Indonesia), matching the nominal price levels of mid-1993 when Sabah imposed a log export ban,
causing confusion across the markets. C&F prices for thin panels 3’x6’ ($790 per m3) and concrete form panels
($580 per m3), in turn, have reached record highs since the TTM Report started tracking these products in 1992.
While prices then plunged rapidly after supply increased and demand eased, the current conditions seem to be
different. Suppliers are not in the position to raise supply to reap the benefits of attractive prices due to acute log
shortages.
Since Japanese floor manufacturers did not have an immediate substitute for Southeast Asian floor base
panels, they had to conform to the new price levels. Hybrid floor (softwood plywood and MDF) might be an
alternative raw material but the supply of softwood plywood from Russia was also tight due to limited log
supply. Overall supply of these important plywood products was tight in Japan as manufacturer’s inventories
were less than 10 days, a situation that is likely to continue through November.
Japan and Chile reach agreement on FTA framework
Japan and Chile have agreed on an FTA framework that would abolish tariffs on 92% of both countries’ exports
over 10 years, after only seven months of negotiations. The agreement would be now translated into legal
documents and take effect early next year. Duty on lumber will be abolished after the FTA comes into effect while
those for plywood and laminated lumber were excluded and might be negotiated later. Fiberboard and
particleboard may be excluded or their duty freed eliminated after five and ten years, respectively. Wood
chip, Japan’s main import product from Chile (69% of Chilean exports), is duty free.
Japan has FTAs with Singapore, Mexico, Malaysia, recently signed one with the Philippines and reached a
basic FTA with Thailand.
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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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