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Japan Wood Products Prices
Dollar Exchange Rates of 11th June 2004
Japan Yen 110.05
Japanese building materials wholesalers have closed their books for the
2003-2004 business year that ended in March. All enjoyed increased sales
revenue and profit as a result of the rush-to-buy which began late last
year as consumers moved to take advantage of tax break measures on housing
from the Japan Lumber Report say shipments of F 4star building materials
to remedy the so-called 'sick house syndrome' increased. Nice
Corporation's sales of house building materials, which accounts for 70% of
its total sales, was reported as up by 9.4% to Yen 181.1 billion. Also,
company sales in western Japan increased by 75% to Yen 14.8 billion driven
by various promotional fairs.
Kenzai Co., Ltd. recorded an increase in revenue and profit. This company
maintains it top position in terms of housing materials sales by
aggressive business tie-ups and mergers with other companies.
Corporation's performance reflects the effect of business cooperation and
revenue is reported as Yen 140 billion which is said to have yielded a
consolidated profit of about Yen 1 billion.
Japanese government has introduced plans to increase procurement of wood
products through a revision of basic plan to promote procurement of
environmentally friendly items under the law 'Green purchase' which was
enacted in March. The
Ministry of Land, Infrastructure and Transport disclosed the new
procurement plan for the public works in 2004.
the plan, twelve new items are added for procurement. For wood products,
four items; lumber, laminated lumber, plywood and LVL are added with
certain conditions. Lumber must be produced out domestic thinnings,
leftover logs or small diameter logs.
lumber, plywood and LVL must be made out of thinnings or waste wood
produced in sawmills and plywood mills and such materials must be over 10%
in volume in the final product. For interior use, formaldehyde emission
standards must be less than 0.3 mg/lrer and the maximum shall not be
higher than 0.4 mg/litre.
this revision, the purchase list included recycled wood products such as
particleboard, fiberboard, wood cement composite board and small diameter
thinning logs. In 2002, actual procurement was 44,591 cubic metres of
small diameter logs, 385,163 square meters of particleboard, 100,664
square meters of fibreboard and 58,963 square meters of wood cement
housing starts were just above 96,000 units, which is the first decline in
five months. The Ministry of Land, Infrastructure and Transport commented
that such a decline could be temporary and that it is too early to say
that the steady improvement in housing starts has changed.
raises plywood prices
of May 20, plywood manufacturers in the Seihoku group have raised the
prices for 12 mm structural softwood panel (F 4star category 1) by Yen 20
yen per sheet to Yen 920 per sheet delivered Tokyo. Prices of 12 mm 3x6
tropical hardwood concrete formboard plywood panels are up by Yen 30 yen
per sheet to Yen 950 yen.
have been pushed up by rising production costs, especially by increased
log and adhesive costs. Mill inventories are reported low and demand is
expected to increase towards the end of June so the manufacturers are
active, particularly for thick softwood panels. The demand for imported
plywood is also reported by the JLR as firm. Prices for concrete formboard
F 3star are up by Yen 20 yen per sheet to Yen 900 and non-JAS panel prices
are up by Yen 20-30 to Yen 770-780 per sheet.
importers are asking for higher prices from end-users. Sarawak Meranti
regular logs are priced at Yen 6,200-6,300 yen per koku CIF, Yen 500-600
higher than in early May and some Yen 900-1,000 higher than late February
mills have finally agreed to accept a Yen 300-400 per koku increase but
say a price hike of Yen 500 yen is too much too soon because plywood
prices are not going up that fast.
the importers, last month's purchase prices translate to a Yen 300-400 yen
per koku increase in wholesale prices so they are desperate to pass the
cost on to their customers.
small and super small logs, normally contracts between Japanese plymills
and importers are made ahead of actual shipments, but plywood mills now
complain that when the logs arrive the prices asked by importers is too
high. The Japanese mills realize that the importers are losing money and
only the exporter is benefiting.
log production is reportedly improving in SE Asia but active demand for
logs by Malaysia processors is supporting a high level of FOB prices.
prices have just about peaked at about US$195-200 per cubic metre driven
up by Indian buyers.
Logs For Plywood Manufacturing
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