Japan Wood Products Prices

01-15th October 2007

Japan Wood Products Prices
Dollar Exchange Rates of  15th Oct.  2007
Japan Yen 117.29
Reports From Japan

Southsea log situation slumps
Impacted by Japan’s plummeting housing starts, prices for Southsea logs are falling or weakly holding. Consumption for logs is decreasing in Japan, and as a result, no new inquiries are being made for logs in producing countries. Price negotiations are deadlocked, as Japanese importers try to alleviate the impacts of the weakening yen, while producers try to cover costs. Similar trends are occurring for plywood.

Plywood imports tumble to nine year low
Plywood imports in August dropped under 300,000 m3 (263,365 m3), the lowest level in nine years. Thisrepresents a 42.7% fall from July levels. Domestic softwood plywood production also fell to its lowest level in 2007. Malaysian imports were down 44.7% from July and Indonesian imports were 59.7% less. China’s steady supply of imports continued in August.

Japan housing starts lowest since 1965
Following drops in housing starts in July, housing starts in August fell 43.4% from the August 2006 levels, the lowest since 1965. Wood-based units were 34.4% down, and units built for rental and sale decreased significantly. The drop is attributed to the tighter laws implemented under the Building Standards Act, which require a closer examination of building applications.

Sumitomo Forestry increases use of domestic species
Sumitomo Forestry has increased its use of domestic species in 2006. The use of domestic cypress in production of structural laminated lumber increased 61% on the previous year, dried lumber from various domestic species rose 67% and the use of domestic cedar and larch ‘cross
panels’ gained 8.4%. Sumitomo aims to raise the percentage of domestic species in its housing materials from its current level of 51% to 70%.

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

Source: ITTO'  Tropical Timber Market Report