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Japan Wood Products Prices

01-15th September 2009


Japan Wood Products Prices

Dollar Exchange Rates of  15th September. 2009

Japan Yen 91.06

Reports From Japan


New leadership announces changes to forest management policy
Newly elected officials of the Democratic Party of Japan
recently assumed their duties in office and announced
changes to Japan’s forest management policies. Although
most of the policies regarding logging road maintenance
systems, harvesting machinery, national forest
management reform and promotion of biomass businesses
largely remain the same, there have been some changes to
the policy. According to the Japan Lumber Reports (JLR),
these include: the creation of a new policy to pay directly
for systems of forest management and environmental
conservation; a more direct focus on private operators in
forest management efforts; an increase in Japan’s reliance
on domestic supply for the wood industry to 50% (instead
of the current 24%); and the introduction of a traceability
system to prevent illegally imported wood.

July plywood imports and housing starts slow
In July 2009, Japan’s plywood imports fell 26.6% by
volume from the same month in 2008 (Figure 1), reported
JLR. Housing starts in July were 32% less than the same
month of 2008 (Figure 2), the same as in June 2009, with
wood-based units making up 57% of total units.

South Sea plywood mills reduce production
Due to recent low demand for South Sea logs in Japan,
Japanese South Sea plywood mills have reduced
production by 20-30%. However, JLR reports that logs
may be in short supply in some areas as a result of the
cuts. Price negotiations are becoming more active as the
log inventories decline, an indication that the market is
showing signs of improvement.

JLR also reports that imports of South Sea logs were down
by 50% during the first half of the year, reaching a volume
of 354,318 m³. The main reason for this decline was the
depressed plywood market in Japan. Sarawak and PNG’s
imports each fell over 58% during the first half of 2009
and Solomon Islands’ imports fell about 24% from the
same period in 2008.


Abbreviations

LM        Loyale Merchant, a grade of log parcel  Cu.m         Cubic Metre
QS         Qualite Superieure    Koku         0.278 Cu.m or 120BF
CI          Choix Industriel                                                       FFR            French Franc
CE         Choix Economique                                                        SQ              Sawmill Quality
CS         Choix Supplimentaire      SSQ            Select Sawmill Quality
FOB      Free-on-Board     FAS            Sawnwood Grade First and
KD        Kiln Dry                               Second 
AD        Air Dry        WBP           Water and Boil Proof
Boule    A Log Sawn Through and Through MR              Moisture Resistant
              the boards from one log are bundled                      pc         per piece      
              together                      ea                each      
BB/CC  Plywood grades. Letter(s) on the left indicate face veneer(s), those on the right backing veneer(s). Veneer grade decreases in order B, BB, C, CC, etc. MBF           1000 Board Feet          
              Plywood   MDF           Medium Density Fibreboard
BF         Board Foot F.CFA         CFA Franc        
Sq.Ft     Square Foot  PHND             Pin hole no defect grade
Hoppus ton     1.8 cubic metres              Price has moved up or down

Source: ITTO'  Tropical Timber Market Report


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