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Japan Wood Products Prices

16-30th June 2010


Japan Wood Products Prices

Dollar Exchange Rates of  29th June 2010

Japan Yen 89.40

Reports From Japan


 Imports of verified legal and certified wood on the rise
According to import statistics by the Japan Lumber Importers’ Association (JLIA), the volume of imported wood products from certified and legal sources in 2009 amounted to 2.71 million cu.m, up 4.7 % from last year. The amount represents 36% of the total wood product imports. The JLIA survey considered logs, sawnwood, plywood, boards and laminated products.

Some 82% of Japan’s plywood imports are from certified and legal sources. Plywood products from Malaysia and Indonesia are 80% certified, according to JLIA.

For sawnwood imports, only 2% are recorded as certified. The majority of imported sawnwood is from North America and Europe. While these products are from a certified origin, importers and/or wholesalers do not keep records on products from these sources, as certificates on tropical timber products are more significant from the consumer perspective.

Wood products from verified legal sources will be promoted in public buildings as prescribed in a public procurement bill on wood use in public buildings in Japan. This initiative among others will increase demand for verified legal and certified wood products in the future, reports the Japan Lumber Report (JLR).

More certified building materials for Japanese market
Japanese building material wholesaler, Jutec Corporation, intends to increase certified product supplies, according to JLR. Jutec acknowledges that certified products in Japan have yet to gain market advantage over non-certified products but the company expects to gain a positive image as a dealer of eco-friendly materials.

In 2009, Jutec sold 8,000 cu.m of certified wooden building materials. Hardwood plywood imports from Indonesia with FSC certificate amounted to 6,400 cu.m, while imports of radiata pine panels and Oriented Strand Boards certified under the PEFC scheme were 1,600 cu.m.

The JLR reports that Jutec is aiming to sell 13,000 cu.m of certified wooden building materials this year, up 60% from last year. Some 10,000 cu.m of hardwood plywood from Indonesia is targeted to be sold in the Japanese market in 2010. The future challenge for the company is to secure sources of certified products.

Forest Policy on expanding domestic wood consumption
The Ministry of Agriculture, Forestry and Fisheries of Japan has held a second meeting on the revitalisation of the timber sector including a revision of Japan’s Forest Policy.

The discussions on the new policy are centred on the multifunctional benefits from forests. The thinking is that the new policy will encourage commercial logging using efficient technologies and involving larger harvest areas than at present and encouragement of replanting after
harvesting. Investments are planned keeping in forest road building and the creation of an effective and profitable supply chain from the forest to the mills. All policy measures are aiming at increasing utilisation of domestic forest resources.

Panasonic’s green procurement guidelines for wood
PanaHome Corporation and Panasonic Electric Works Co. Ltd have introduced green procurement guidelines for wood to increase the share of eco-friendly wood in their wood consumption. The procurement guidelines were prepared in consultation with WWF Japan, reports JLR.

According to the guidelines, wood products are classified into three groups. The first group comprises FSC certified and recovered (recycled) wood products. The second group covers wood products certified under other certification schemes. All other wood products for which legality cannot be confirmed fall into the third group.

Panasonic Group’s wood consumption totalled 440,000 cu.m in 2009. Wood consumption under the first group was 47% of the total, while second group accounted for 51% of consumption and third group 2%. The target for 2011 is to procure wood products only from FSC certified sources and from recovered wood (first group).

Plywood prices firming
The JLR is reporting that prices for imported concrete formboard are firming. Byers in Japan are now well aware of shortage of South Sea logs in the market. However, the unavoidable price increases are difficult to be passed on to endusers until inventory levels are seen to fall.

The market price for imported 3x6 concrete formboard is Yen 900 per sheet but importers are proposing a price of Yen 930 per sheet. 2.5 mm thin plywood prices are Yen 320-330 per sheet and for 4 mm thin plywood around Yen 420-500 per sheet.

 

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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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