Tropical log demand
The Japan South Sea Lumber Conference has revised its demand projection made in December
2001 for tropical hardwood logs. The new project is for a total imports of 1,784,000 cubic
metres, 25% less than in 2001. It is estimated that 1,595,000 cubic metres will be for
plywood use, 26.5% less than in 2001 and 189,000 cubic metres will be for lumber use,
20.4% less than last year. Recent harvest logging restriction in Sarawak to prevent
illegal logging have pushed log prices considerably higher which, it is anticipated, may
trigger a reduction in consumption by Japan of SE Asian tropical logs.
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Tropical Plywood Supply Tight
Log production in Sarawak has dropped due to enforcement of restrictions on illegal
logging and this has reduced the availability of logs and has caused log prices to soar.
This has also pushed export plywood prices higher because of reduced offers.
The supply of tropical hardwood plywood has become extremely tight and
prices are rising. Imported sheathing and concrete formboard for coating are in short
supply and the availability of domestic manufactured concrete formboard, thin and medium
thick B & C plywood is also getting tight. This is a supply side issue while on the
demand side there is a very mixed picture. Demand by precut mills is steady but in regular
distribution channels, such as Tokyo, wholesalers say enquiries have become are inactive
as of last week.
In the Tokyo market, imported long sheathing prices are yen 820-830 per sheet delivered
wholesalers, yen 20-30 higher than last week. Import 3 x 6 coated concrete formboard
prices are about yen 1,050,yen 50 higher than a month ago. Imported 3 x 6 JAS concrete
formboard prices are yen 860-880, yen 20-30 higher than a week ago.
Domestic 3 x 6 coated concrete formboard prices are yen 1,030. Yen 60-70 higher and JAS
concrete formboard is yen 850-860, yen 50-60 higher. The prices of 12 mm structural
softwood Fc2 are rising due to a strong push by plywood mills, going to around yen 720-730
per sheet. DD grade is in short in supply so that the prices are up by yen 60-70 at about
yen 700.
Source:ITTO News |
