Japan Wood Products Prices
16-31 March.  2004

Japan Wood Products Prices

Dollar Exchange Rates of  19th March 2004

Japan Yen 106.78

Report From Japan

Price up across the board

Higher costs have pushed up the prices of most building materials. As forecast by the Japan Lumber Report, prices of wood products and building materials are rising.  As raw material cost go up the lumber and plywood mills have been lifting prices. Analysts report that market is generally receptive to moderately higher prices but that, so far, the price increases that have been secured by manufacturers are not enough for all to cover their higher production cost so further increases will be keenly sought.

Indonesian Plywood Prices jump

Apkindo, the Indonesian Plywood Association, has proposed a further round of price increases for Indonesian plywood for April-May shipment and prices look set to go up by around US$10 per cubic metre from prices seen in February.

The proposed price for 12 mm JAS concrete formboard plywood for April -May shipment is US$400 per cubic metre C&F. The main reason quoted for the higher prices is higher log cost as a result of limited log production after Indonesian government tightened logging controls and reduced harvest levels in kalimantan.  The longer than normal rain season this year also resulted in tight log availability. Higher ocean freight is also another factor causing price increases.

The importers say that, considering the current market situation in Japan, purchases of such highly priced plywood is becoming difficult even though the Yen has strengthened recently.  Importers fear that if prices go too high imports may be reduced drastically.

Wholesalers in Japan point out that, at the moment, the plywood market in the country is still inactive with little movement in demand. However, they do say that there have been some speculative purchases of plywood items in short supply in the market especially as future supplies may be uncertain and export prices seem set to continue to rise

In particular, 3x6 hardwood concrete formboard panels for coating are in very short supply. The availability of this item is dropping fast and there is little in the market. Because of this prices for this product have moved to about yen 1,020 per sheet delivered, yen 40-50 higher in February.

Domestic plywood prices are unchanged at around yen 980-990 yen.

Prices for standard sheathing plywood (12mm /F 3star/category two) and standard structural plywood (12 mm/F4Star/premium category) are reported as tight and prices are firming.

Imported standard plywood prices are yen 820 yen per sheet delivered yen 20 yen up while structural plywood prices are at yen 860-880, yen 10-20 up. Concrete formboard panel prices are at yen 860-870, yen 10 up.

Softwood Log Prices Surge

Increasing demand at home and in the export markets, as well as a broad-based strengthening of currencies, are the two reasons given to explain recent price increases.

Douglas fir log prices

FAS prices for Douglas fir logs for March shipment increased to US$770 per thousand Scribner for on bark IS grade. Log demand by the Pacific Northwest sawmills reported as extremely active and domestic log prices are advancing such that, in some area, suppliers prefer to sell logs into the domestic market.

Higher FOB prices for NZ Radiata

FOB prices for New Zealand radiata pine (A logs for March shipments) were agreed at US$74-75, US$3 per cubic metre higher than February. FOB prices have gone up US$18 over the past six months and, as ocean freight remains high, Japanese analysts expect further increases.

In addition, Chilean suppliers of Radiata have proposed US $15 per cubic metre increase on pine lumber for mid April, early May shipment.  

Off-shore Processing 

The Japan Lumber Report says that Sumitomo Forestry has started marketing imported KD cedar lumber which has been produced from Japanese logs shipped to its Chinese plant in Fujian Province. Production of this plant is reported at 2,000 cubic metres per month, out of which 1,000 cubic metres will be shipped to Japan.

Logs For Plywood Manufacturing  

 For more information on the Japanese market please

see www.n-mokuzai.com