Japanese Timber Market Plugged
Timber exporters dealing with Japanese clients do not overstate timber demand for reconstruction in Japan. Indeed, earthquakes and tsunami on March 11 destroyed 100,000 to 150,000 houses. But glulam manufacturers and export managers of large sawmills in Central Europe are assuming that reconstruction will stretch over a period of five years. 2010, housing starts amounted to 819,000 units, for 2011, 900,000 units are expected. Thereof, buildings in timber have a share of 56%. That means one should not come from an export boom in in the coming months.
In addition, there are still problems with logistics. Destroyed ports and roads in the affected regions are still making distribution difficult.
Great Demanf For Low-Valu Lumber and Wood-Based Panels
Currently, there are urgent needs for plywood, OSB and low-value softwood lumber, that is mostly supplied from Russia and North America. These materials are needed for emergency accomodations. Nearly 40,000 barracks will be built, 27,000 are already completed.
Japanese plywood industry has been hit for six by earthquake and tsunami. Plywood plants in the northeast of the country were destroyed as well as log storages in the ports. Main suppliers of plywood, China, Malaysia and Indonesia, increased their exports to Japan. Immediately after the catastrophe, there were sharp price increases of 30 to 50%, meanwhile increases were withdrawn. In softwood lumber, a real additional demand will not exist.
Reduced Glulam Demand
The focus on emergency shelters might reduce the need for high-quality glulam beams. European manufacturers guess that at the end of fourth Quarter of 2011 or early 2012 increasing demand could be expected at the earliest. By March, the glulam business was good. The exchange rate of Yen/€ promotes shopping in Euro zone since 1st Quarter of 2010. Volumes offered by Scandinavian producers are high. Attempts to raise prices of redwood lamellas have failed. In spruce glulam prices are stable. Prices for glulam lamellas in Japan are under pressure.
Beech and Fir logs exporters do not expect any effects by the catastrophe in March. Beech is used as a niche product primarily for flooring and furniture industry. Fir supplies go to Southern Japan, which was not affected.
In addition, there are still problems with logistics. Destroyed ports and roads in the affected regions are still making distribution difficult.
Great Demanf For Low-Valu Lumber and Wood-Based Panels
Currently, there are urgent needs for plywood, OSB and low-value softwood lumber, that is mostly supplied from Russia and North America. These materials are needed for emergency accomodations. Nearly 40,000 barracks will be built, 27,000 are already completed.
Japanese plywood industry has been hit for six by earthquake and tsunami. Plywood plants in the northeast of the country were destroyed as well as log storages in the ports. Main suppliers of plywood, China, Malaysia and Indonesia, increased their exports to Japan. Immediately after the catastrophe, there were sharp price increases of 30 to 50%, meanwhile increases were withdrawn. In softwood lumber, a real additional demand will not exist.
Reduced Glulam Demand
The focus on emergency shelters might reduce the need for high-quality glulam beams. European manufacturers guess that at the end of fourth Quarter of 2011 or early 2012 increasing demand could be expected at the earliest. By March, the glulam business was good. The exchange rate of Yen/€ promotes shopping in Euro zone since 1st Quarter of 2010. Volumes offered by Scandinavian producers are high. Attempts to raise prices of redwood lamellas have failed. In spruce glulam prices are stable. Prices for glulam lamellas in Japan are under pressure.
Beech and Fir logs exporters do not expect any effects by the catastrophe in March. Beech is used as a niche product primarily for flooring and furniture industry. Fir supplies go to Southern Japan, which was not affected.