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Japan
Wood Products Prices
Dollar
Exchange Rates of 30th Sep.
2007
Japan
Yen 114.88
Reports
From Japan
Fukuda elected as new Japanese Prime Minister
New Liberal Democratic Party President Yasuo Fukuda was sworn in as the new Japanese
Prime Minister on 26 September 2007, reported The Japan Times. While the Japanese House of Representatives and the House of
Councilors elected different candidates for the PM position and consultations between the two chambers
failed to identify a clear victor, the Lower House’s choice, Mr. Fukuda, triumphed based on guidance contained in the
Constitution. A new Cabinet was also formed, containing many of former Prime Minister Abe’s members, in an
effort to maintain continuity in legislative affairs.
Conference held amid falling plywood market in Japan
After the market for plywood fell in Japan (see TTM 12:17), the Indonesian Plywood Association
(APKINDO), the Malaysian Plywood Manufacturers Association (MPMA) and the Japan
Federation of Plywood Manufacturers held a plywood conference in Jakarta, Indonesia. The
three main participating countries met in early September to discuss how to adjust plywood
production for the rest of the year. Plywood manufacturers from Japan agreed to curtail
production, while plywood mills in Indonesian and Malaysian would reduce production for
exports to Japan and other countries. All participants hoped that prices would recover by the
end of the year and urged a second conference be held to reassess the situation.
Composite floor production slips 8% in 2007
Production of composite flooring reached 28.3 million m2 in the first half of 2007, down 8% from
the same period in 2006. Plywood base flooring fell 20.6%, but composite material base flooring
increased by 46.9%. The shift was due to declining supplies of South Sea hardwood and
increasing prices. Shipments of flooring were down 7.6%, reaching 29.0 million m2.
Demand for plywood remains flat
During the month of September, the plywood situation was stagnant and there was no sign of
recovery for domestic or imported products. Although some importers claim that the bottom of
the market for import hardwood plywood from South Sea countries had been reached, there
is little hope that the wholesale market would turn around soon since prices were extremely low.
Prices of imported plywood were low due to adjustments being made to port inventories.
According to the Japan Lumber Journal, imports from Malaysia, Japan’s largest supplier,
showed a 31.1% decrease in July’s imports due to the slow pace of negotiations between
importers and manufacturers. Indonesian imports also decreased 16.1%, while Chinese
imports grew 14.1%.
Wood products imports rise in value by 18.9%
While imports of wood products slightly decreased in volume during the first half of 2007, they
increased in value by 18.9% to JPY669.5 billion yen. Rising suppliers’ prices triggered the jump
in value and the appreciation of the Euro increased total value. However, demand
continued to be weak, and buyers were less willing to absorb higher prices. As a result, imports during the
second half of the year are expected to slow.
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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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