Japan Wood Products Prices
16-31th May  2004

Japan Wood Products Prices

Dollar Exchange Rates of  21th May  2004

Japan Yen 112.26 

Report From Japan

Imported plywood market 

With the continuing weak Yen and firm stance on FOB prices taken by exporters, the cost of imported plywood and wood-based panels has risen considerably and this is making forward purchases difficult, say Japanese importers.  

Some importers are quoted in the Japan Lumber Report (JLR) as saying that they are unable to purchase since today's landed cost has shot up by about 4% compared to costs in late April. In the short term arrivals may decline. Overall the view from Japan is that the market is tightening because of decreasing supply and that further price increases are unavoidable because of higher import costs.  

Mixed high and low prices 

The local supply of imported hardwood plywood such as 12mm structural panel, standard panels, 3x6 concrete formboard panel for coating and 2x6 concrete formboard panel is reported tight because of reduced arrivals and low inventories in Japan. Some dealer says they have no business because there is no stock to offer.  

Log supply in Indonesia continues tight according to the JLR while prices in Malaysia are reportedly easing. Indonesian manufacturers are said to be offering on 3x6 JAS concrete formboard panels at US$390-400 per cubic metre C&F. At the moment reports indicate that Malaysian export prices (at the current Yen rate) are about US$10 per cubic metre lower than Indonesian prices. 

The market for 3x6 concrete formboard panels for coating is very firm and this product is being traded at Yen 1,050 per sheet wholesale delivered some Yen 20-30 higher than a month ago. However this is not high enough to cover the landed cost of Yen 1,100 so further increases seem to be on the way. Structural panels are selling at Yen 930-950, Yen 30 higher and prices are said to be firming. The price for 2.4 mm F 4Star is reported at Yen 310 per sheet and firming.  

Oshika's Second China Plant  

The second glue manufacturing plant of Zhanjiangan Oshika Chemical Industries, in which Oshika Corporation participates as a joint shareholder, will start up in June. The joint venture company completed the first plant in October last year and within six months it was running at full capacity.  

The first plant produces 45,000 tons of resin together with about 1,000 tons per month of resin for plywood manufacture. With rising demand for this adhesive the plant plans to increase production up to 5,000 tons a month.  

The initial capital investment of US$6 million will reportedly be increased to US$8.5 million dollars. Demand in China for this type of resin is huge and growing especially as China has emerged as a key supplier of value added wooden products for the Japanese market.

 Added value Imports  

Japan's imports of Chinese wood products amounted to around Yen 170 billion in 2003 and Japanese imports of manufactured, added value products are growing. Imports of Chinese added value wood products in 2003 are reported as Yen 148 billion, up 13.5% on 2002.

 If imports of disposable wooden chopsticks and bamboo products are added to the total  then the figure was even higher and the Japanese dependency on Chinese producers grows.

 China has a vast domestic market which is growing rapidly and China needs to secure raw materials from Russia, Southeast Asia, Oceania and African countries and some say the sustainability of the supply of finished products from China may be doubtful because of the dependency on imported raw materials.

 However, given the competitive labour costs in China and given the high quality of production, China has a big advantage at the moment in the Japanese market and the mutual business association between China and Japan will become much closer.

For more information on the Japanese market please

see www.n-mokuzai.com

Source:ITTO