Japan Wood Products
Prices
Dollar Exchange Rates of
13th June. 2008
Japan Yen 106.18
Reports From Japan
Seven and i Holdings contributes JPY 100 million to ITTO
Japan Corporate News Network reported on Seven and i
Holdings Co.’s recent contribution to the ITTO, which
will help support initiatives to protect the world’s
rainforests and curb illegal logging. The Japanese retail
company will contribute about 100 million yen (about
USD1 million) to protect nearly 8,000 hectares of forests
in Asia, Africa and Latin America. While the initiative
directly supports alternatives to slash and burn agriculture
in rainforests, it will also enable the company to cut
carbon dioxide emissions by about 1.2 million tons, or half
the company’s annual carbon dioxide emissions.
First quarter results show log and lumber imports eclining in Japan
The Japan Lumber Reports (JLR) reported on log and
lumber imports for the first quarter of 2008, noting that log
import volumes from Russia, North America and South
Asian countries all declined. Russia had the most notable
drop of 66% from the same period in 2007, which resulted
from the spike in log export tariffs imposed by the Russian
government. Chinese products were also struggling due to
the strong appreciation of the yuan. The chart below
shows the main items and sources of logs, lumber and
plywood and their respective changes from the 2007-2008
period.
Demand for South Sea logs still weak in Japan
Log production in the South Sea region has recovered,
said JLR. Nevertheless, it was noted that priority for log
sales would be given to domestic suppliers in South Sea
producer countries before filling contracts for export.
Demand for plywood continues to be weak in Japan
although prices are generally firm.
Despite the boost in supply, the Japan Lumber Journal
reported that there was still a ‘weakness in demand from
end-users’ in Japan for South Sea logs. Prices for Sarawak
logs, PNG and Solomon logs remained unchanged for the
third consecutive month. Lumber manufacturers also saw
a decline in South Sea log quality, due to the growing
production of small diameter logs that result in difficulties
for product sizing. Transport of logs via sea freight is still
a problem, as only three to four ships are operating from
Sabah.
Plywood imports and housing starts rise in April 2008
Japan Lumber Reports provided data that showed rises in
both plywood imports and housing starts in April 2008.
The volume of plywood imports in April 2008 (Figure 1)
rose 14.8% since March 2008, although it showed a yearon-
year decrease of 16%. For housing starts (Figure 2),
figures for April 2008 showed a 16.6% rise from March
2008 levels, but an 8.7% drop from April 2007 levels.
The Japan Lumber Journal also noted that housing starts
for June are expected to be ‘relatively low’ since it is the
rainy season in Japan. Domestic plywood manufacturers
continue long-term production curtailment and the total
plywood import supply from the January to April 2008
period was about 26% lower than during the same period
in 2007. In early June, manufacturers were increasingly
using materials manufactured from domestic logs and
searching for possible substitutes for South Sea logs such
as Douglas fir and radiata pine logs.
|
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 |
|
|
|
