Japan: Meranti logs breach the US$200 level

  • July 02, 2010
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 4951
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Tropical log prices have been inching up in recent months and at long last Sarawak log exports have achieved the US$200 per cu.m for Meranti Regular logs that was their target, in fact current asking prices are closer to US$220 per cu.m.

Log availability in Sarawak is reportedly very tight because bad weather is hampering logging. Also, it is reported that some of the major suppliers are now moving into new concession areas which is disrupting the regular flow of logs.

Because log stocks are low in Sarawak, Japanese log importers have delayed sending vessels to load logs and the JLR says that the next loading could be as late as end June.

As log stocks are low and international demand is firm suppliers have been asking higher prices. For Japan, Small Meranti prices are at US$180 per cu.m FOB up US$4-5 per cu.m on levels in May. The JLR says prices of US$190 per cu.m will be seen soon.

In Japan, plywood mills are actively buying logs as plywood sales are improving slightly. Sarawak Meranti regular logs are priced at Yen 6,800 – 6,900 per Koku CIF, Yen 300 up on levels a month ago. Small Meranti log prices are at yen 5,800-5,900 per koku also up Yen 300 per koku on prices in May. Demand for tropical hardwood logs by Japanese crating manufacturers has strengthened and this is another factor driving up log prices.

US supplying JAS and FSC Douglas fir
Demand for certified lumber is growing in Japan reports the JLR and this is giving a boost to US lumber exporters. Apparently many west coast US sawmills are increasing exports to Japan even in the face of rising US domestic log prices and higher ocean freight charges. To attract Japanese buyers US millers are now cutting metric sizes and are offering more kiln dried lumber.

Japan
Log and Sawnwood Prices in Japan
Logs for Ply Manufacture, CIF
Meranti (Hill, Sarawak)
Yen per Koku
(koku=0.278 m3)
Medium Mixed
6,300
Standard Mixed
6,500
Small Log (SM60%, SSM40%)  
6,300
Taun, Calophyllum, others (PNG)
8,000
Mixed light hardwood, G3/4 grade (PNG)
-
Keruing MQ & up (Sarawak)
10,500
Kapur MQ & up (Sarawak)
8,900
Logs for Sawmilling, CIF
Yen per Koku
Melapi (Sarawak) High Select
11,500
Agathis (Sarawak) High Select
-
Lumber, FOB
Yen per m3
White Seraya (Sabah) 24x150mm, 4m, Grade 1
135,000
Mixed Seraya, Sangi 24x48mm, 1.8-4m, S2S
53,000

Wholesale Prices (Tokyo)
Indonesian & Malaysian Plywood Size (mm)
Mar
Apr
(¥ per sheet)
2.4mm (thin plywood, F 4star, type 2 ) 920 X 1830 320
320
3.7mm (med. Thickness, F 4star, type1) 910 X 1820
450
450
5.2mm (med. Thickness, F 4star, type 1) 910 X 1820
560
560
11.5mm for sheathing (F 4star, type 2) 910 X 1820
880
890
12mm for foundation (F 4star, special) 910 X 1820
900
920
12mm concrete-form ply (JAS) 900 X 1800
850
870
12m coated concrete-form ply (JAS) 900 X 1800
950
1010
11.5mm flooring board 945 X 1840
1100
1150
3.6mm baseboard for overlays (OVL) 1230 X 2440
740
740
OSB (North American)
12mm foundation of roof (JAS) 910 X 1820
-
-
9mm foundation for 2 by 4 (JAS) 910 X 2440
-
-
9mm conventional foundation (JAS) 910 X 2730
-
-
9mm conventional foundation (JAS) 910 X 3030
-
-