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Japan
Wood Products Prices
Dollar
Exchange Rates of 15th November 2006
Japan
Yen 118.10
Reports
From Japan
Housing starts chalk up strong gains
Total housing starts surged to 112,442 units in September, up 4% from a year ago and the second highest monthly
level in the year (see chart). The growth was supported by gains in rental and built-for-sale houses. Wood-based units
accounted for 44% of the total housing starts, down from 45% the previous month. However, wood structured
houses increased for the twelveth consecutive month compared with one year earlier. Seasonally adjusted
annual starts reached 1.298 million units, the fifth consecutive month over the 1.2 million level. In Jan-Sep 2006, total housing starts were 4.5% above the pace in 2005.
China lifts prices for plywood and LVL
Export prices for Chinese poplar plywood and laminated veneer lumber (LVL) for the Japanese crating market
jumped $30-50 per m3 in October, forcing importers to raise sales prices by ￥100 per ply sheet and ￥4,000-5,000
per m3 of LVL. Chinese exporters raised prices to offset a 2% cut of refund on export duties (see TTM 11:18), and in
response to the weak US dollar against the yuan and stronger demand from USA and the Middle East. Chinese
products were increasingly being used as a substitute for Southeast Asian hardwood products in short supply. These
products were being traded in Japan at ￥950-980 per sheet FOB truck of poplar plywood and ￥46,000-48,000 per m3
of LVL.
August log imports surge snaps declining import trend
Import of tropical logs by Japan surged 3% to 134,489 m3 in August. However, total Japanese imports of tropical
logs amounted to 855,866 m3 in the year to July, 12% below last year’s import volume (see chart). Japan’s total
supply of Southeast logs fell 12% to 846,117 m3 up to
August. Accumulated log imports in 2006 had come from Malaysia (77%, two-thirds of which from Sarawak), PNG
(15%), Solomon Isl. (7.5%) and Africa (0.5%).
Tropical log prices reach fresh 12-year highs
Log prices in Japan had climbed steadily over the last year, reaching fresh 12-year highs every month due to
imbalanced supply and demand. Sarawak, which supplied around 58% of the tropical logs to Japan, had been raising
log prices virtually for each shipment bound for Japan.
However, the available volume was lower compared with last year’s shipments, thereby exerting added pressure on
prices. The situation was likely to persist through late March or early April as the monsoon season further
affected log harvesting operations. This would in turn have an impact on Japanese plywood mills hoping to build up
log inventories.
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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 |
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