Japan Wood Products
Prices
Dollar Exchange Rates of
13th Mar. 2009
Japan Yen 98.03
Reports From Japan
Log and lumber imports drop in 2008
In 2008, Japan’s log imports registered a 31% decline and
lumber imports (excluding those from Europe) dropped
4% (See Table 1 below). Japan Lumber Reports (JLR)
noted Russian log exports dipped nearly 54% from 2007
levels. Additionally, South Sea log volumes fell, since
plywood mills were consuming less. European lumber
imports dropped nearly 25% after losing their
competitiveness due to the strong Euro, although this trend
is now reversing.
In early 2009, prices for South Sea logs have become
stronger in producer countries, although Japanese import
prices are starting to fall, reported Japan Lumber Journal
(JLJ). Prices of logs from Sarawak were down by about
100 yen, while those from Solomon Islands and PNG were
up about 200 yen from the previous month. The
differences in prices were due to the varying quality of
items and exchange rates. Although log extraction from
sites in Malaysia has been difficult due to poor weather
since early March, there is adequate supply as there has
been little motivation from Japanese buyers to purchase
logs for plywood and lumber products. Japanese trading
firms are hoping sales will pick up soon in order to move
inventory.
Plywood imports and housing starts continue to weaken
Plywood imports and housing starts for January 2009 both
dropped lower from January 2008 levels, reported JLR.
Plywood imports fell 12.4% while housing starts dropped
18.7% from the previous year, and both fell further from
levels registered in December 2008. JLR noted domestic
softwood plywood production was at the lowest level seen
since January 2003. In recent weeks, demand from China
for imported plywood dropped, while there was continued
stable demand for Vietnam’s plywood. JLJ reported that
the movement of plywood continued to be sluggish at the
beginning of March.
Sumitomo forestry plantation in Indonesia receives FSC certification
According to JLR, Kutai Timber (KTI), the manager of
Sumitomo’s plantation forest in Indonesia has received
FSC certification. The certificate will be the first for
Sumitomo’s forestry business overseas. The plantation
covered about 5,000 ha in 2008. KTI along with 259 local
farmers helped establish a cooperative to manage the
plantation, which was an essential step for helping the
company meet FSC certification requirements.
Forestry Agency announces new projects beginning 2009
As reported in JLJ, the Japan Forestry Agency will focus
its attention on promoting a new system for processing
regional timber; improving processing at regional
production centers; and establishing emergency measures
for the lumber industry during its period of reform. To
promote processing of regional timber, the Agency will
work with small scale sawmills over 2009 to 2013, with
the Agency financing about 50% of the activities in the
project. The agency will provide guidance to sawmills on
switching from imported to domestic log supply, assist
with technical equipment and applied techniques for
lumber drying and provide assistance at the regional level
to support high quality manufacturing systems in key
factories. The Agency will spend about JPY13 billion over
a three year period, 2009-2011, to support changing the
type of wood products manufactured, improve product
quality and streamline distribution, and ensure stability in
log supply. To address emergency measures for the lumber
industry, the Agency will implement programmes over a
three to four-year period to help sawmills adjust to the
change to using domestic log supply, support initiatives
for low cost manufacturing and subsidize installation of
new facilities for manufacturing.
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