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Japan Wood Products Prices

01-15th November 2010

Japan Wood Products Prices

Dollar Exchange Rates of  15th Nov 2010

Japan Yen 83.19

Reports From Japan

 Log prices forecast to climb
According to the Japan Lumber Reports (JLR), the Japanese market for hardwood logs is firming. The strong Yen has lowered CIF log prices in Japan in recent months. However, prices are forecast to climb in December. FOB prices are expected to further increase due to log shortage and robust demand from China and India.

In Sarawak, meranti regular log export prices continue to climb from US$230 per cu.m FOB last month to US$236-238 per cu.m FOB. Small meranti prices gained US$6-8 per cu.m from a month ago to US$206-208 per cu.m FOB.

Plywood mills in Japan utilising imported tropical hardwood logs are maintaining reduced production levels at around 70% of full capacity. However, plywood manufacturers in Japan demand more hardwood logs as their log inventories are low and the rain season in Sarawak is expected to curtail log supply, reports JLR.

In Japan, CIF prices remained relatively stable from last month at Yen 7,100-7,200 per koku for Sarawak meranti regular logs, Yen 6,000-6,100 per koku for small meranti logs, and Yen 5,800-5,900 per koku for super small meranti logs. Sabah kapur log prices remained unchanged from last month at Yen 9,500 per koku.

September housing starts third lowest ever recorded
Total housing starts in Japan during September were 71,998, up 18% from September last year. Housing starts has increased for the fourth consecutive month this year, reports JLR.

Condominium units are making the major contribution to the growth of housing starts. Starts of condominium units doubled in September compared to last year.

However, the seasonally adjusted housing starts grew only slightly by 1% compared to levels in August. Wood frame units were up by 13% and these constituted about 57% of the total housing starts in September.

Despite the positive growth from last year, housing starts are still far lower than the pre-crisis levels. In fact, September housing starts were third lowest ever recorded.

Plywood industry groups meet in Seoul
A regular meeting between plywood industry groups of Japan, Republic of Korea and Taiwan P.o.C was held at Seoul, Republic of Korea, reports JLR. A total of 35 industry representatives participated the meeting to discuss the market situation and share information.

Participants were concerned over the growing demand for softwood logs in China, India and the Middle East. These countries are importing more and more logs and producing highly competitive plywood and panel products for export. Participants agreed on maintaining import duties and common efforts in promoting plywood.

New production line for composite concrete formboard
Taisei Electronic Industries, Inc. announced the commissioning of a plant to produce composite concrete formboard (2x6 and 3x6 / 9 mm and 12 mm). The composite board is made of saw dust and waste plastic and it is said to be an alternative to concrete formboard in floor manufacturing. The new plant is planned to start production in September 2011 with a production capacity of 100,000 sheets of 9mm 2x6 formboard per month.

• Wood Market Prices in Japan (16-31,Oct 2010)

• Wood Market Prices in Japan (01-15,Oct 2010) 

• Wood Market Prices in Japan (16-30,Sep 2010) 

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