Japan Wood Products
Prices
Dollar Exchange Rates of
28th August 2011
Japan Yen 76.83
Reports From Japan
Peak demand for plywood for emergency housing over
The Japan Lumber Reports (JLR) has indicated that the
total plywood supply (production plus imports) in Japan
for the first six months of 2011 was 3,113,700 cu.m, 9%
more than during the same period last year.
Domestic production in the same period dropped by 14%
due to the effect of the March earthquake and tsunami
while imports increased by 28%.
Imports of plywood in May were the largest for over four
years but then declined in June to 383,000 cu.m; however
this was still 38% more than in June last year.
Producers of tropical plywood in Malaysia increased
exports to assist with the quake recovery efforts so imports
of plywood from Malaysian increased. Indonesian
producers were unable to expand production for Japan due
to log availability problems.
Up until early May the plywood market was very active
says the JLR but this was largely the result of speculative
trading in anticipation of strong demand for reconstruction
efforts.
The basic demand drivers had not changed in Japan so
once the demand for plywood from the quake hit areas
was satisfied, the market weakened sharply and prices for
structural and concrete formboard panels softened.
Domestic plywood production on recovery track
Domestic plywood production in June was 198,900 cu.m,
17.4% less than June last year but 5.6% more than May
reports the JLR. Softwood production was 173,300 cu.m,
17% less than June last year. June domestic plywood
production was the largest since the March disaster. The
quake and tsunami damaged plywood mills were quickly
restored and production began in some during July.
The JLR anticipates that domestic supply will gradually
increase so the issue facing the sector is how to balance
supply and demand to maintain stability in the plywood
market.
Fake JAS stamped plywood detected
The JLR is reporting that immediately after the March
disaster some traders imported plywood samples from
China and that some of this was falsely JAS marked with a
certificate of origin from China. The samples provided
were 910x1,820 mm and of an uneven thickness of 12.1-
12.5 mm.
These panels had marking for both structural and standard
quality and were nine ply panels with a pintangor face and
back and poplar cores.
Tropical log FOB and wholesale prices ease
Prices for tropical logs in Japan peaked in July and this
was most noticeable for Sarawak Meranti says the JLR.
Since July wholesale log prices have eased as stock levels
have improved and because FOB prices have fallen
slightly.
Meranti log prices in Sarawak in early August were about
US$310 per cu.m FOB, US$20-30 lower than in early July
reports the JLR. Some log suppliers are asking peak
prices, claiming the logs are from virgin forest and are of
high quality. Other suppliers, who also export to China,
have been accepting slightly lower prices from Japanese
buyers.
Small Meranti prices are around US$280 per cu.m FOB
and super small Meranti prices are at US$265 per cu.m
FOB. Future price levels are difficult to predict says the
JLR as Indian importers have resumed active buying so a
continual downtrend in FOB prices seems unlikely, say the
JLR.
Sabah log prices are mixed but, in general, they are on the
high side. In Japan, July wholesale log prices for Sarawak
Meranti regular were Yen 10,000 per koku CIF but, as the
Yen has appreciated, prices recently eased to Yen 9,700
per koku CIF.
Demand for tropical hardwood structural plywood weakening
Domestic demand for imported tropical hardwood
structural plywood is weakening says the JLR. Prices
moved down in July then dropped further during August.
JAS structural panel (special type/F4star) prices are Yen
1,100 per sheet delivered. Prices for Type 1 panels are
Yen 30-50 lower than for structural panels. Concrete
formboard 3x6 (JAS) prices are Yen 1,100 per sheet
delivered while coated concrete formboard 3x6 panels are
priced at Yen 1,200 per sheet delivered.
The current stock replacement cost of imported coated
concrete formboard panels is around Yen1,280 per sheet
so the current wholesale price of Yen 1,200 per sheet is
too low for the importers.
Compared to structural panels and non-JAS panels, for
which inventories are rather high, inventories of concrete
formboard panels are not high says the JLR so prices for
this type of panel should not weaken as prices for other
panels types could.
Prices for thin and medium thin panels are reportedly flat.
Panels of 2.4 mm thickness (F4star/type two) are Yen 380-
400 per sheet delivered. Medium thick 3.7 mm panels
(type one) prices are Yen 540-570 while 5.2 mm panel
prices are Yen 640-670 per sheet. As the supply of thin
panels is limited and the demand is stable the market is
well balanced at present.
Only bright spot in June housing starts is units built for sale
June 2011 new housing starts, says the JLR, were 72,687
units, almost 6% more than in June last year. This
represented three months of consecutive increases.
However, for the month of June this was third lowest level
of housing starts.
Construction of units for owner occupiers in June was the
second lowest for a June month and continued the
downward trend which began two months ago. Units built
for rent increased for the first time in nine months but still
they were the third lowest for a June.
The only bright spot was in units built for sale. In
particular, condominium starts climbed almost by 50%.
Condominium starts in the Tokyo metropolitan area
increased by 92% and the considerable increase continues
the trend which began last September.
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