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Japan
Wood Products Prices
Dollar
Exchange Rates of 30th March
2007
Japan
Yen 117.84
Reports
From Japan
Traders regard tropical log market as still bullish
Japanese traders met recently at the Southeast Asia Lumber Conference in Tokyo. Attendees agreed that the
price situation for tropical logs remained bullish. There were reports that the rainy season still continued in timber
producing areas such as Sabah and Sarawak. Following
the end of the Chinese New Year celebrations, workers have returned to the logging sites, but the productivity was
reportedly about half of the usual pace.
Demand for softwood plywood expands
The plywood market conditions of softwood and Southeast Asian plywood seems contrasting in Japan. Major housing companies and regional builders are
rushing to secure thick softwood plywood, particularly 24-28mm which are used for base sheets of houses. The
usage of thick plywood for floor foundations is spreading among builders and demand is expected to
increase further. Japanese manufacturers of softwood plywood have frequently raised prices, following price
hikes for Russian logs. Prices of 12mm plywood, for instance, are now close to the levels of those for tropical
plywood.
Domestic prices for plywood are bottoming
In contrast, the market for imported plywood had been deemed as “bearish” due to adequate stocks. However,
discounted products are gradually disappearing from the Japanese market due to stock adjustments. The decline
of domestic prices for tropical plywood seemed to be bottoming out in late March. In Southeast Asia,
exporters continued to hold plywood prices firm on the back of increasingly expensive logs.
2006 Japanese log imports slow down to 2005 levels
Imports of tropical logs by Japan fell 30% to 98,329 m3 in December. Japanese imports of tropical logs have been
mostly declining since September due to Ramadan and New Year festivities, after growing for most of the year
since March 2006, helped by stronger prices (see chart). Overall, total Japanese imports of tropical logs amounted
to 1.37 million m3 in 2006, a mere 0.1% up from 2005. Log imports in 2006 came from Malaysia (78.3%, over
two-thirds of which from Sarawak), PNG (13.8%), Solomon Isl. (7.7%) and Africa (0.5%). Tropical log
exports to Japan were anticipated to decrease in early 2007 due to reduced supply during the Chinese Lunar New Year
festivities.
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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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