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Japan
Wood Products Prices
Dollar
Exchange Rates of 14th Mar. 2008
Japan
Yen 100.78
Reports
From Japan
Tokyo association anticipates upbeat trends in spring
Japan Lumber Journal reported on the market’s
sluggishness in February, after seeing stronger movement
of goods in January. Participants at a recent Tokyo
Lumber Wholesalers’ Association committee meeting
noted that the market was ‘rising from the bottom’ and
expected to pick up by April. Most prices for items were
said to be at the previous month’s levels, but some prices,
such as those for lauan structural plywood were higher
than those in January.
Plywood supply in December plunges 24.5%
The Japan Plywood Manufacturers Association announced
that plywood imports had dropped 24.5% to 280,000 m³ in
December 2007 from December 2006 levels. Japan
Lumber Journal said that imports from Malaysia fell
31.6% from the previous year and Indonesia’s imports fell
14.4%, continuing to slide for the seventh month in a row.
China’s imports were also reduced, falling 17.1% from
December 2006 levels. In 2007, Malaysia was still the
biggest importer (50.1%), followed by Indonesia (29.4%)
and China (16.7%). China was the only country to have
increased its share of imports in 2007.
At the end of February 2008, JLJ noted that the imported
plywood situation was tight. Japanese buyers also
continued to face pressure from exporters, who were
holding firm on prices and negotiations of volume. In
addition, vessels to Japan had been delayed, causing
suppliers further problems. As a result, slow movement of
imported plywood was expected during February and
March.
Japan Forestry Agency’s 2008 budget cut by 2.3%
The Japan Forestry Agency’s budget for fiscal year 2008
has been lowered 2.3% from the previous year’s level,
reported the Japan Lumber Journal. The emphasis of this
year’s budget has shifted from public to non-public works.
About 30.6 billion yen of the budget is set aside to help
Japan reach its Kyoto Protocol emissions targets through
carbon sequestration in forests. Japan will also focus on
improving its domestic wood processing and distribution
systems. Other areas that will be addressed in the 2008
budget include training for forest managers, research in
silvicultural techniques and boosting local timber
production.
NTFPs boosted forestry production in 2006
The Statistical Department of the Ministry of Agriculture,
Forestry and Fisheries stated that Japan’s forestry
production rose 3.7% in 2006 from the previous year, the
first increase in 10 years. The JLJ noted that production of
lumber was up 3.3% and cultivation of mushrooms
jumped 4.3%. The primary factor for the increase in
production of lumber was a price rise for cypress and
continually growing outputs of cedar. Prices rises for
various Japanese mushrooms also helped boost overall
forest production.
Sluggish housing starts impact Japanese business
The Japan Lumber Journal said that low housing starts
throughout 2007 have begun to impact Japanese
businesses, noting the recent closure of Shimosawa
Sangyo Co, Ltd. While the company was well-revered in
Japan, its 2006 sales slumped and the company suffered
further losses from weak construction demand in 2007.
However, other businesses were more optimistic about
their outlook for 2008. Japan Kenzai Co., Ltd. last month
held an exhibition with major building material makers.
The sponsors of the exhibition said turnout was more
positive than expected, given the slowdown in the housing
industry. Sales also met expectations at about JPY44
billion.
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