Japan Wood Products
Prices
Dollar Exchange Rates of
15th October 2009
Japan Yen 90.60
Reports From Japan
Strong Yen hits log prices
The recent strengthening of the Japanese Yen affected
prices of imported logs. At one point last month it looked
as if the Yen had stopped its strengthening trend and
Japanese buyers started to show signs of buying tropical
logs. But, with the stronger Yen and FOB prices in US$
falling, buyers have pulled out of the market again.
However, the Japan Lumber Reports (JLR) is saying that
any drastic drop in log prices is unlikely as plywood mills
have started to increase production and are actively
buying.
Over the past 2-3 months log consumption by plymills has
increased to over 50,000 cubic metres monthly and the
forecasts are for this to be maintained.
The JLR reports that Sarawak Kapur log prices are firming
due to active buying by India. At prices of US$240-250
per cu.m Japanese buyers pull out of purchasing. Overall
tropical log prices are reported as steady.
Ranking house builders
It has been reported that the Japan Forest Products Journal
has concluded a survey of house builders. For 2008, the
top builder was Tama House which claims to have built
over 10,000 units. Second ranked was Sumitomo Forestry
with over 9,000 units. The survey notes that many house
building companies have gone bankrupt and that this is
causing realignment in the house building sector in Japan.
In other news, Sumitomo Forestry is reported as having
acquired a major share in an Australian house builder.
This is part of the companies plan to diversify its business
outside of Japan to compensate for falling starts in the
Japanese market.
August housing starts
Total housing starts are reported by the JLR. August starts
were down over 38% on the same month in 2008 and the
August data represent nine consecutive months of falling
starts.
N. American sawnwood
For the first seven months of the year imports of N.
American sawnwood is almost 30% lower than for the
same period last year. July arrivals are down 34% year on
year. The weak housing market is primarily the cause of
the falling imports.
Wood flooring for Japan
China is now a major producer of high quality wooden
flooring and is attracting Japanese buyers. Wood flooring
is manufactured in Dalien, Shanghai, Guanzhou and
Kunming. Hardwood timbers such as oak and ash from
Russia are processed in Dalien while in Shanghai and
Guanzhou there is more emphasis on tropical hardwood
flooring.
Japanese buyers first dealt with producers in Dalien for the
oak and ash flooring but eventually shifted purchases to
the Shanghai and Guanzhou area where the quality was
reportedly better. However, because of rising prices of
flooring from Shanghai and Guanzhou manufacturers who
are facing rising production costs, Japanese buyers have
reverted to buying from producers in the Dalien area.
The trend is now to purchase composite flooring with
hardwood overlays as the demand in Japan is for
inexpensive flooring.
Low carbon housing
The JLR is reporting on the momentum towards reduction
of carbon emissions and other energy saving systems in
housing.
To effect a reduction in carbon dioxide emissions in the
life cycle of a building Japan is developing what is called
locally the Life Cycle Carbon Minus (LCCM) house
design.
Designs for model house are scheduled to be completed by
the end of this year and units will be built and assessed for
carbon reductions in 2011.
|
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 |
|
|
|
