Japan Wood Products
Prices
Dollar Exchange Rates of
28th May 2010
Japan Yen 90.92
Reports From Japan
Log enduses in Japan
The Japan Lumber Reports (JLR) has indicated that Japan’s log consumption in 2009 amounted to 22,803,000 cu.m, 12.4% lower than in 2008. Of this, total domestic supplies were 16,619,000 cu.m (down 6% cf. 2008) and imports were 6,184,000 cu.m (down 26%).
In terms of enduses, some 15,279,000 cu.m was used for sawnwood production, (down 13% cf. 2008) and another 3,107,000 was used for the manufacture of plywood (down 22% cf. 2008). The balance was used mainly for wood chips.
Imported logs for sawnwood production declined 22% while the use of domestic logs for sawnwood fell only around 8%. Logs imported for plywood production dropped by 39% in 2009 compared to levels in 2008.
In 2009, the number of sawmills in Japan dropped to 6,865 (down 7% on 2008) while the number of plymills fell to just 208 with 25 mills ceasing operation.
Plywood prices
Plywood manufacturers in Japan are desperately trying to find ways of improving company profitability after a long period of poor demand and low prices coupled with increasing log and adhesive costs.
The JLR says that there are some signs of demand recovery but plywood dealers are resisting the higher prices as these are not demand driven but are being demanded by plywood manufacturers. At the moment, the manufacturers are able to push up prices so that the dealers have no choice but to accept the new price levels and to try and pass these on to endusers.
According the JLR, both Malaysian and Indonesian plywood mills are facing difficulties in securing adequate supplies of logs. This, and the fact that one of the largest plywood manufacturers in Malaysia has decided to delay a decision on its new price structures until June, is adding pressure to the calls to raise plywood prices.
The latest offer price from suppliers for 3x6 concrete formboard at US$480 per cu.m C&F was made in April, up US$25 per cu.m on earlier levels.
The wholesale price in Japan for concrete formboard for coating is mixed and supply is tight says the JLR. Prices are said to be firming at a level of Yen 780- 800 per sheet for 2x6 and this is Yen 20-30 per sheet higher than a month ago.
Importers are proposing a price of Yen 900 per sheet delivered for 3x6 concrete formboard while the market level is still hovering around Yen 880-890 per sheet.
March plywood supply improves
The total supply of plywood in March was 457,100 cu.m, almost 8% up on levels in March last year and an improvement on levels in February this year. Plywood imports fell while domestic production increased.
Imports from Malaysia and Indonesia dropped while imports from China increased considerably. First quarter imports of plywood from China were up by more than 50% compared to the level in the first quarter 2009.
In March, plywood sales grew and inventory levels declined by around 5% according to the JLR. Inventories in March stood at 162,600, the lowest level since May 2007.
Adhesive prices moving up
The prices of phenol and methanol have increased recently and this is impacting on the cost of producing resins for the timber industry. Due to the weak demand for plywood and board products, adhesive manufacturers have not been able to raise prices to compensate for their increased production costs. However, now that plywood prices are being forced up, they see an opportunity to increase adhesive prices.
The adhesive manufacturers say that the price levels attained in 2008, when the market was buoyant, have been wiped out. According to the JLR, several of the large adhesive suppliers will increase prices in June.
Marketing drive for structural MDF
Structural MDF is marketed as an alternative to plywood for some enduses and the Japanese company, Hokushin, intends to increase production and promotion of structural MDF. The JLR reports that the company will increase production by 1,500 cu.m per month and that its promotional campaign will target builders and construction companies who are focussing on the so-called ‘long-life’ residential homes.
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