Japan: Plywood market trends

  • January 30, 2010
  • • Source: ITTO's Tropical Timber Market Report
  • • Views: 6795
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The plywood market in Japan has seen tough times in 2009 and to end the year things got worse as the bottom fell out of the market for softwood plywood. In December prices were falling day after day. The JLR suggests it is too early yet to tell what the first quarter market is likely to be like. Some Japanese manufactures have been cutting back production to try and stabilise the market but others have continued production and have been selling at very low prices. The JLR is reporting that, despite the weak demand in Japan, some wholesalers have been seeking concrete formboard after reports emerged that Malaysian suppliers where cutting formboard shipments because of the low prices in Japan and profitable alternative markets in other countries.

Freight rates likely up
The JLR is speculating that freight rates may be increased substantially in the near future. The indications are that the availability of west bound containers on the west coast of N. America is becoming a problem. The weak dollar has resulted in a decline in west bound containers but an increase in eastbound cargo, hence the shortage.

Demand projections for N. American timber
In mid Dec the Japan Lumber Conference released projections of demand for 2010. Japan’s demand for logs is expected to rise by around 3% while lumber demand is forecast to be up 7% for the year.

Promotion of legal timber
The JLR is reporting that the All Japan Federation of Lumber Associations ended 2009 with a symposium to promote procurement of legally certified wood. This was the 4th such symposium to deliver information on how the private sector in Japan is tackling the illegal timber issue. The Keynote speech at the year end meeting was delivered by the former Executive Director of ITTO Dr. B.C.Y. Freezailah.

Japan’s green housing
In a recent economic stimulus package the Japanese government created incentives for sustainable homes. Home owners who opt for eco-friendly and thermally efficient homes will earn so-called eco-points which can be exchanged for gift certificates, prepaid cards for public transport or merchandise. New houses with double glazing and insulation can earn the so-called ‘eco-points’.

Japan
Log and Sawnwood Prices in Japan
Plywood, FOB Georgetown Port
$ Avg unit val. per m3
Baromalli     BB/CC    5.5mm
-
    12mm
387
Utility     5.5mm
-
   12mm
-
Logs for Ply Manufacture, CIF
Meranti (Hill, Sarawak)
Yen per Koku
(koku=0.278 m3)
Medium Mixed
6,400
Standard Mixed
6,600
Small Log (SM60%, SSM40%)  
6,400
Taun, Calophyllum, others (PNG)
7,500
Mixed light hardwood, G3/4 grade (PNG)
-
Keruing MQ & up (Sarawak)
10,800
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)
Oct
Nov
(¥ 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
460
450
5.2mm (med. Thickness, F 4star, type 1) 910 X 1820
550
560
11.5mm for sheathing (F 4star, type 2) 910 X 1820
880
880
12mm for foundation (F 4star, special) 910 X 1820
890
850
12mm concrete-form ply (JAS) 900 X 1800
820
790
12m coated concrete-form ply (JAS) 900 X 1800
930
890
11.5mm flooring board 945 X 1840
1070
1070
3.6mm baseboard for overlays (OVL) 1230 X 2440
740
740
OSB (North American)
12mm foundation of roof (JAS) 910 X 1820
1000
1000
9mm foundation for 2 by 4 (JAS) 910 X 2440
1050
1050
9mm conventional foundation (JAS) 910 X 2730
1250
1250
9mm conventional foundation (JAS) 910 X 3030
1350
1350