Japan Wood Products Prices

01-15th December 2007

Japan Wood Products Prices
Dollar Exchange Rates of  15th Dec.  2007
Japan Yen 113.4
Reports From Japan

Southsea log prices weaken due to lower plywood consumption
Japan Lumber Reports said that log inventories in Japan were still at high levels, although arrivals were slower due to falling consumption at plywood mills. However, with the Christmas and New Years holidays approaching, many plywood mills had started to replenish their log stocks despite the weak market for plywood. Since the yen was appreciating, market prices were weakening for certain types of logs. In contrast, with the onset of the rainy season in producing countries and rising freight rates, FOB prices were strengthening. The two factors have offset each other, and as a result the arrival cost had not changed. FOB prices were rising, with prices holding firm for kapur and keruing due to consistent demand from China and prices bottoming for certain species from Sarawak.

Plywood imports show upturn despite housing slowdown
Plywood imports rebounded 25% from September 2007 levels, reaching 329,835 m3 in October 2007 (Figure 1). However, imports fell 31.3% from October 2006 levels. This occurred due to a rebound in housing starts, even though overall housing starts for October 2007 fell 35% from the previous year’s levels (Figure 2).

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