Japan Wood Products
Prices
Dollar Exchange Rates of
15th November 2011
Japan Yen 77.03
Reports From Japan
Plywood imports slow bringing some stability to the market
Plywood imports in September dropped sharply and were
down to about 202,300 cu.m, 36% less than in August and
25% less than the same month a year ago. The high level
of plywood imports following the March earthquake has
now come to an end. Estimates of plywood arrivals for
October are also low so the market, says the Japan Lumber
Reports (JLR), should firm as inventories decline.
In September plywood arrivals by source were; Malaysia
63,000cu.m, 52% down from August and 49% down from
September last year.
Imports from Indonesia were72, 000 cu.m, 32% down
compared to August and around 20% down year on year.
Imports from China totalled 56,000 cu.m, almost 18%
down on levels in August but still 19% up on September
2010 levels.
The supply of plywood from Malaysia dropped by almost
a third from the peak levels in May and supplies from
China are now down by half. In September this year
supplies from Canada were only 1,000 cu.m, 95% less
than in the peak month of June.
In late August, the plywood market virtually collapsed
under the strain of huge imports and prices plunged, says
the JLR. Today, plywood prices in the Japanese market are
bottoming out and there has been a hint of a rebound for
12 mm concrete formboards.
Importers estimate October arrivals at around 220-230,000
cu.m and say inventories are continuing to fall.
SE Asian log supplies tight
The JLR is reporting that log supplies in Malaysia remain
tight and vary by region. In the regions of Malaysia where
India is aggressively purchasing the supply is tight and the
log prices are higher than in other areas. In Sarawak
suppliers said to be asking more than US$330 per cu.m
FOB for meranti regular logs.
Logs suitable for the Japanese market are also in tight
supply but Japanese plywood mills are not chasing these
high priced logs because of uncertainty in the Japanese
plywood market and because they have adequate
inventories of about three months supply.
Sarawak meranti regular log prices are US$285-300 per
cu.m FOB, which is up by US$10-15 per cu.m. Meranti
small log prices are ranging from US$250 to US$270 per
cu.m FOB reports the JLR.
In recent months there has been an increase in ocean
freight costs adding around US$1 per cu.m to the landed
cost mainly because the number of loading ports for any
one shipment has had to be increased, says the JLR.
Third supplementary budget plan by the Forestry Agency
The third supplementary budget includes money for
restoration in Eastern Japan and for restoration work after
the typhoon during the summer. Funds are also allocated
for disaster prevention.
Around Yen140 billion has been allocated for extension of
the forest industry revitalization fund and for domestic
forest maintenance. Part of this fund is to be used to
subsidise transportation of thinnings from domestic forests
reports the JLR.
Another Yen11.24 billion is for restoration of quake
damaged wood processing facilities. This, it is estimated
by the JLR, will be enough to restore about 50 plants in
Iwate, Miyagi and Fukushima.
Plans are also in place to utilise wood waste resulting from
the damage caused by the earthquake and tsunami for
power generation. Around Yen 9.5 billion has been
allocated for this in the latest budget.
Housing starts rise after slowing in aftermath of the
March disaster
Housing starts in July and August were over 900,000 units
in terms of annual starts. The supply of homes has started
to catch up after the slow down because of the March
earthquake and negative effect of the termination of the
house eco point system. The eco point system has now
been re-introduced giving a boost to starts.
September starts were 64,206 units, around 11% less than
the same month a year ago and this was the first decline in
six months. Seasonally adjusted starts were 745,000 units,
20% less than August, the lowest in two years.
The largest decline by category was rental units, 18%
down, the lowest on record for the month of September.
Owners’ units also dropped recording the first decline in
three months and the second lowest in record.
Condominium starts, which were the driving factor for
housing starts recently also declined.
Japanese company to market FSC certified plywood
Jutec Corporation (Tokyo) will start marketing
domestically made FSC certified softwood plywood from
January next year. Jutec has been handling certified
products since 2008. So far, the certified products have
been imported but now the company will handle
commodity softwood plywood.
Jutec acquired ISO 14001 in December 2005 and started
marketing environmentally friendly products. It obtained
CoC certification by both FSC and PEFC in 2009.
Initially, imported certified materials were the main
products such as FSC certified Indonesian and Malaysian
plywood, Chilean radiate pine plywood, European OSB
and Chinese radiata pine products.
The company also traded the first FSC certified
domestically produced tropical hardwood plywood
produced by Ofunato Plywood, however this plywood mill
was destroyed by the tsunami in March this year.
Since November this year Jutec started marketing FSC
certified softwood structural plywood produced by Akita
Plywood. Jutec trades a variety of hardwood and softwood
panel products as well as imported and domestic products.
Nankai Plywood builds sawmill in Indonesia
The JLR is reporting that Nankai Plywood Co., Ltd. is
building a sawmill in South East Java in Indonesia. The
mill will be completed by March next year and will utilise
plantation falcata.
The mill will produce boards for lamination which will be
sent to their Surabaya finishing plant. Nankai Plywood
began its plantation development in 2006.
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