KUCHING: Japan has increased its plywood imports from China for the third consecutive month but slowed down shipments from the top supplying countries Malaysia and Indonesia.
In June 2022, Japan shipped 37,500 cubic metres (cu m) of plywood from China compared to 32,200 cu m and 25,000 cu m in the previous months of May and April respectively.
In the first six months of 2022 (6m2022), Japan’s total imports from China amounted to 139,000 cu m or an average monthly of 23,166 cu m.
China is the third largest plywood supplier to Japan and has overtaken Vietnam, according to data from Japan Finance Ministry quoted by International Tropical Timber Organisation (ITTO) Tropical Timber Market Report (Aug 16-31, 2022).
In June 2022, Japan’s plywood imports stood at 171,465 cu m, up 17 per cent from June 2021 but was down six per cent from May 2022.
“Indonesia and Malaysia are the main suppliers of plywood to Japan and together they accounted for close to 70 per cent of Japan’s June imports. Plywood imports from China have been steadily rising since the start of the second quarter and at almost 38,000 cu m June imports accounted for over 20 per cent of total plywood imports.
“Shippers of plywood in Vietnam also did well in June, seeing an almost 40 per cent increase in shipment,” said the report.
June’s shipments from Indonesia fell over 20 per cent to 52,400 cu m from 68,200 cu m in previous month May while shipments from Malaysia fell to 61,400 cu m from 67,600 cu m month-on-month but well below the average for the year so far.
In 6m2022, Malaysia continued to dominate the market share in Japan, with total exports of 418,900 cu m versus 400,200 cu m by close competitor Indonesia. Vietnam exported 81,400 cu m to Japan in 6m2022.
According to Japan Lumber Report (JLR) in its latest report, there is still a shortage of domestic softwood plywood in Japan.
“The reasons are that demand decreased and Chinese softwood plywood was imported in May and June with a volume of 19,000 cu m.
“However, Japanese plywood companies’ shipment are very good. The inventory at the end of June was 92,200 cu m. Shipment base is 0.3 month. The prices of 3×6 and 12mm thickness of plywood are holding at 2,000 yen, delivered per sheet.”
The JLR said the prices of South Sea (tropical) plywood are still high.
“Since it will be in rainy season in South Asia when new contracts are produced, there are not much new orders and product will be started after October. JAS 3×6 plywood panel for concrete forming from costs US$850, C&F per cu m and the yen cost will be higher in Japan due to a weak yen.
“A movement of imported South Sea plywood is sluggish. This is an unusual situation in this season. Usually, the sluggish movement occurs at the end of July through August but it has been slow since the beginning of this year.
“Future prices of JAS 3×6 plywood panel for concrete forming are 2,450 yen, FOB per sheet and this is 50 yen higher than last month. The prices in Japan are 2,300 yen delivered per sheet and this is also 50 yen higher than last month,” added JLR, its bi-monthly publication of which is reproduced by ITTO report.
JLR said the prices of South Sea lumber and Chinese lumber are skyrocketing due to the high-priced lumber in South Asia and a weak yen.
The price of Merkusii pine lumber in Indonesia are US$950,C&F per cu m and of red pine lumber in China are US$1,020 — 1,050 C&F per cu m.
“It is a good season to cut down Merkusii pine in Indonesia and Indonesia companies are willing to produce. However, there are enough inventory in Japan, so negotiations for new contracts are rough going. Demand in Japan is not lively. Indonesian Merkusii pine lumber in Japan costs around 135,000 yen, delivered per cu m.
“Chinese red pine lumber costs around 140,000 yen, delivered per cu m. Both kinds of lumber are 2,000 yen more than last month.”
On South Sea logs, JLR said the movement is slow even if there are much demand for South Sea lumber for steel makers and ship building companies, and there are not enough demand for producing trucks.
