Japan Wood Products
Prices
Dollar Exchange Rates of
29th May. 2008
Japan Yen 105.59
Reports From Japan
Southsea log prices keep Japanese buyers at bay
Japan Lumber Reports (JLR) explained that the high
prices for Southsea logs contributed to weak demand from
Japanese buyers. Log production continued to be low in
Malaysia and Indonesia due to rainy conditions and thus
kept logs in tight supply. The JLR noted that the process of
slowing production began last year, which set the tone for
a reduction in logistical services including towing and
stevedoring. JLR suggested that it would be difficult to
pick up the pace of production even with stronger demand.
It was expected that buyers in Japan would wait until mid
or late June to return to the market, when prices are
expected to be lower and production is expected to
increase.
Industrialization of Russian Far East stalls
At a joint meeting of the Council of Wood Industry
Development and the Far Eastern State Commissions, it
was noted that the wood industry in the region has not
made much progress. The prime minister of the
Khabarovsk region also reaffirmed that the 80% duty on
log exports, expected to be implemented in January 2009,
will not be postponed. The Council of Wood Industry
Development was last year tasked with developing an
eleven year strategic plan for the wood industry, said the
JLR. However, it was noted there were only 20 investment
plans in the wood industry in the Far East and Zabaikarsk
so far. Additionally, China has continued its boarder log
trade with Russia. JLR noted that China was building up
log supplies before the implementation of the Russian duty
next year.
In other industry news from the JLR, Japanese-owned
Sumitomo Corporation and Terneyles are developing a
wood processing complex in Plastin, Primorski krai,
Russia. The complex is expected to require an investment
of about 18.1 billion Japanese yen, one of the largest
overseas investments in the wood industry. Sumitomo
Corporation is undertaking the development of wood
processing facilities, using Terneyles timber resources, so
that it will not be affected by the increased log duty
imposed by Russia.
Plywood imports rebound in March 2008
Japan Lumber Reports indicated that plywood imports in
March 2008 rose 30% from February 2008 levels (Figure
1). However, when compared with the same month in
2007, March imports showed a 9.1% fall, since demand
had been low during the first two months of the year.
Nevertheless, imports in March helped relax the tight
supply of plywood in the local market, which also resulted
in a price reduction when compared to January and
February 2008. Imports from Malaysia by volume
increased 164,000 m³, while shipments from Indonesia
remained low. Imports from Malaysia over the first quarter
were 27% less than the first quarter in 2007 and imports
from Indonesia were 39% less. Domestic plywood
production also continued to be scaled back, an ongoing
trend since August 2007.
Housing starts also showed a year-on-year decrease of
15.6% (Figure 2). Wood-based units accounted for 47% of
the total housing units for March 2008. Annual starts for
2008 were also revised downward to 1.08 million units.
|
Abbreviations
| LM Loyale Merchant, a grade of log parcel |
Cu.m
Cubic Metre |
| QS Qualite Superieure |
Koku 0.278 Cu.m or 120BF |
| CI Choix Industriel
|
FFR
French Franc |
| CE
Choix Economique |
SQ
Sawmill Quality |
| CS Choix Supplimentaire |
SSQ
Select Sawmill Quality |
| FOB Free-on-Board |
FAS Sawnwood Grade First and |
| KD Kiln Dry |
Second |
| AD Air Dry |
WBP Water and Boil Proof |
| Boule A Log Sawn Through and Through |
MR
Moisture Resistant |
|
the boards from one log are bundled |
pc per piece |
|
together |
ea
each |
| BB/CC Plywood
grades. Letter(s) on the left indicate face veneer(s), those on the right backing
veneer(s). Veneer grade decreases in order B, BB, C, CC, etc. |
MBF 1000 Board Feet
|
|
Plywood |
MDF Medium
Density Fibreboard |
| BF Board Foot |
F.CFA
CFA Franc
|
| Sq.Ft Square
Foot |
PHND
Pin hole no defect grade |
| Hoppus ton 1.8 cubic metres |
  Price has moved up or down |
|
|
|
