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Japan Wood Products Prices

01-15th January 2011

Japan Wood Products Prices

Dollar Exchange Rates of  15th Jan 2011

Japan Yen 82.63

Reports From Japan

 Tropical log prices continue to climb
Log export prices at the Tanjon Manis port continue to climb due to the tight supply situation. At the other ports such as Bintulu and Sungai Balam, the rate of the price surge is milder. At the Tanjon Manis port, meranti regular log export prices are approaching US$250 per cu.m FOB, while prices in the other ports are US$5-10 per cu.m less.

Indian companies have shifted to buying meranti as the supply of their preferred species like keruin and selangan batu has become unstable. As a result, demand and prices of meranti logs have soared. According to Japan Lumber Reports (JLR), some log suppliers sell small meranti without any sorting as mixed qualities to the Indian market. Unless higher offers are made by Japanese importers, Malaysian log suppliers prefer to sell to India.

Current prices to the Indian market are at US$240 per cu.m FOB for meranti regular logs and US$225 per cu.m FOB for small logs. Japanese buyers are offering prices of US$250 per cu.m FOB for meranti regular logs and US$230 per cu.m FOB for small logs.

Log shortage hampering plywood production
Manufacturers are retaining a bullish stance on pricing as log supplies are tight in Malaysia. Prices for imported 3x6 concrete formboard are now Yen 930 per sheet delivered. Prices for 3x6 coated concrete formboard remained at Yen 1,040 per sheet delivered, despite declining inventories.

The JLR reports that prices for thin and medium panels are also moving up. Indonesian 2.4mm plywood (F 4star, type 2) export prices gained from US$720-730 per cu.m C&F to US$750 per cu.m C&F while prices for 3.7mm plywood firmed to US$600 per cu.m C&F. Indonesian floor baseboards are now priced at US$750 per cu.m C&F.

Manufacturers have orders till February but are cautious in taking any new orders due to the log shortage. Japanese buyers are resisting price increases but the current position of the Yen is making their position even more difficult.

International symposium on certified wood
All Japan Federation of Lumber Association and Japan Lumber Inspection & Research Association held an “International Symposium on legally certified wood” in Tokyo in December.

Some 200 participants from Indonesia, Malaysia, China, Europe and North America deliberated on promoting the use of certified wood and common perception on measures to combat illegal logging. Measures to reduce illegal harvest of timber were presented at the meeting.

Japan presented its system of certifying legality of wood products. Indonesia and Japan are also working together on developing a technology on timber origin traceability.

• Wood Market Prices in Japan (01-15,Dec 2010) 

• Wood Market Prices in Japan (16-30,Nov 2010) 

• Wood Market Prices in Japan (01-15,Nov 2010) 

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