First quarter results show log and lumber imports declining in Japan
09/07/2008 - 09:03
The Japan Lumber Reports (JLR) reported on log and lumber imports for the first quarter of 2008, noting that log import volumes from Russia, North America and South Asian countries all declined. Russia had the most notable drop of 66% from the same period in 2007, which resulted from the spike in log export tariffs imposed by the Russian government. Chinese products were also struggling due to the strong appreciation of the yuan. The chart below shows the main items and sources of logs, lumber and plywood and their respective changes from the 2007-2008 period.
Demand for South Sea logs still weak in Japan
Log production in the South Sea region has recovered, said JLR. Nevertheless, it was noted that priority for log sales would be given to domestic suppliers in South Sea producer countries before filling contracts for export. Demand for plywood continues to be weak in Japan although prices are generally firm. Despite the boost in supply, the Japan Lumber Journal
reported that there was still a ‘weakness in demand from end-users’ in Japan for South Sea logs. Prices for Sarawak logs, PNG and Solomon logs remained unchanged for the third consecutive month. Lumber manufacturers also saw a decline in South Sea log quality, due to the growing production of small diameter logs that result in difficulties for product sizing. Transport of logs via sea freight is still a problem, as only three to four ships are operating from Sabah.
Plywood imports and housing starts rise in April 2008
Japan Lumber Reports provided data that showed rises in both plywood imports and housing starts in April 2008. The volume of plywood imports in April 2008 (Figure 1) rose 14.8% since March 2008, although it showed a yearon-year decrease of 16%. For housing starts (Figure 2), figures for April 2008 showed a 16.6% rise from March 2008 levels, but an 8.7% drop from April 2007 levels. The Japan Lumber Journal also noted that housing starts for June are expected to be ‘relatively low’ since it is the rainy season in Japan. Domestic plywood manufacturers continue long-term production curtailment and the total plywood import supply from the January to April 2008 period was about 26% lower than during the same period in 2007. In early June, manufacturers were increasingly using materials manufactured from domestic logs and searching for possible substitutes for South Sea logs such as Douglas fir and radiata pine logs.
Japan Log and Sawnwood Prices in Japan
Logs for Ply
Manufacture, CIF
Meranti (Hill, Sarawak)
