Japan Market Report
Tropical Log Importers Push Prices Up
Tropical log FOB log prices are firming but wholesale prices in Japan remain flat. Log
importers are, however, attempting to push their sales prices higher as their import costs
are rising because of the weaker yen. However, passing on higher log prices to plywood
mills is difficult because of a lack of active demand. Prices for concrete formboard
have moved up some but prices for thin and medium thickness plywood remain unchanged so
the plywood mills say that they will not be able to accept higher log prices until there
is an improvement in demand for plywood.
Log prices in late November were yen 4,900 per koku CIF for Sarawak Meranti regular,
unchanged on last month, Small Meranti is at yen 4,000 and prices are at yen 3,500 for
Super Small Meranti. Plywood mills are offering just yen 3,500 for Small Meranti mixed
with super small, and this is yen 400-500 lower than the actual purchase price.
Currently in Japan there is little interest in PNG logs. Taun and Calophyllum are about
yen 4,700-4,800 per koku CIF. Also there are few inquiries on relatively higher priced
African logs such as okoume.
Nankai Ends Plywood Production
Nankai Plywood has disclosed that it will stop plywood production at the end of March
next year. This company is one of a few integrated companies which has diverse operations
from production of plywood to building material.
The current high cost of making plywood impacts the overall cost cost of their building
materials production so the company decided to stop plywood manufacture. It has already
stopped buying logs. Imported Indonesian plywood will substitute their plywood needs for
building materials.
Hazardous Emission Control
Japan's Ministry of Land, Infrastructure and Transport will intensify the control of
hazardous chemical emission from various building materials. The standard for indoor
formaldehyde concentrations released by furniture, flooring, curtains and carpets must be
less than 0.08 ppm.
Building materials and items used inside the house, which are not regulated by JIS or
JAS, must have labels to show the level and type of chemical emission. Items, which are
not covered by Japan's emission standards such as JIS, will be assessed on ISO evaluation
measures. These new controls will come into effect before 2004.
Forest Certification Plans
Japan Forestry Association, chairman, Mr. T. Akiyama, has established a committee to
discuss ways to introduce forest certification in Japan. The first meeting was held
recently and a decision was taken that by March 2002 they will come up with ideas on
appropriate certification for Japanese forestry.
Tropical Log and Lumber Prices
Prices remain unchanged
| Logs For Plywood Manufacturing |
| CIF Price |
Yen per Koku |
| Meranti (Hill, Sarawak) |
|
| Medium Mixed |
4,900 |
| Meranti (Hill, Sarawak) |
|
| STD Mixed |
5,000 |
| Meranti (Hill, Sarawak) |
|
| Small Lot |
|
| (SM60%, SSM40%) |
3,800 |
| Taun, Calophyllum (PNG) |
|
| and others |
4,700 |
| Mix Light Hardwood |
|
| (PNG G3-G5 grade) |
3,700 |
| Okoume (Gabon) |
6,500 |
| Keruing (Sarawak) |
|
| Medium MQ & up |
6,800 |
| Kapur (Sarawak) Medium |
|
| MQ & up |
5,700 |
| Logs For Sawmilling FOB Price Yen per Koku |
| Melapi (Sarawak) |
|
| Select |
8,700 |
| Agathis (Sarawak) |
|
| Select |
8,500 |
|
|
| Lumber FOB Price |
Yen per Cu.m |
| White Seraya (Sabah) |
|
| 24x150mm, 4m 1st grade |
175,000 |
| Mixed Seraya 24x48mm, |
|
| 1.8 - 4m, S2S |
42,000 |
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