Japan’s government has been pushing policies that favor green building and promote the use of domestically sourced timber. As construction trends shift, imports of softwood sawlogs continue their decades-long decline, but as volumes dwindle North America’s market share increases.

Historical Import Volumes
Japan’s annual softwood log import volumes peaked at almost 18 million m3 in 1987, and between 1986 and 1990 Japan imported upwards of 16 million m3/year. By the end of 2017, annual softwood log import volumes barely exceeded 3 million m3.


Source: ResourceWise

Japan’s softwood log imports are almost entirely sawlogs. One factor in the import decline has been a decline in traditional Japanese construction, particularly single-family homes, amid demographic changes, which has reduced demand for lumber and plywood. Japan has the world's fastest-ageing population; more than 29% of its 125 million population is 65 or older. Japan’s total housing starts between 2003 and 2023 declined by almost 30%, and in the same period, wooden housing starts fell by 13%.

The Rise of Engineered Wood Products
Another trend that has influenced log imports is the increasing use of engineered wood products (EWPs). Laminated veneer lumber (LVL) and glued laminated timber (glulam) have become increasingly popular for residential and commercial construction and Japan has domestic production of EWPs. Rising interest in tall mass timber buildings and recent legislation to support the use of wood in construction is likely to bolster the market for EWPs.

The Japanese government has also been encouraging the use of the country’s own forests. In 2023, Japan Lumber Journal reported that Daito Trust Construction Co. Ltd. had started construction in Iwate Prefecture on apartments made of all domestic lumber. About 80% of the buildings supplied by the Daito Group are wood structures built using 2x4 framing and CLT (cross-laminated timber) construction techniques.

In 2023, Japan’s annual softwood sawlog imports fell to a little more than 1.9 million m3 from 3.1 million m3 in 2017, according to WMP data. Japan’s imports from January through November 2024 show a year-over-year decline of 14%.

For dominant suppliers such as the US and Canada, market share in Japan has risen even as softwood log export volumes have trended downwards. In 2017, the US accounted for 52% of Japan’s softwood sawlog imports, and Canada about 31%. In 2024 through November, combined US and Canadian exports to Japan accounted for 86% of Japan’s imports.
  
Source: resourcewise.com