KUCHING: Japan’s imports of plywood has continued to slide, falling 38.2 per cent to 142,632 cubic metres (cu m) in June 2023 from a year ago. The demand and supply of South Sea (tropical) plywood in the Japanese market is very tight, according to Japan Lumber Report (JLR) in its latest bi-monthly report.
The price of 12mm 3X6 of painted plywood for concrete form has risen by about 50 yen in June 2023 to 1,900 yen, delivered to form plywood forms per sheet. And it is 1,950 yen delivered at wholesalers per sheet. Form plywood and structural plywood are 1,800 yen, delivered to wholesalers per sheet.
This is levelled off from the previous month, said the JLR report, which is reproduced by International Tropical Timber Organisation (ITTO) Tropical Timber Market Report (August 16-31, 2023). According to JLR, the inventory of painted plywood for concrete form is decreasing in Japan, and some shippers in South Asia have raised the selling price by US$10- 20, C&F per cu m, up from the previous time.
It said consumers in Japan have been cautious about purchasing plywood due to the exchange rate fluctuation but some consumers purchased plywood when the yen appreciated against the US dollar in the middle of July.
On Japan’s domestic softwood plywood, the report said its price is about to hit bottom because the inventory has been decreasing and plywood companies did not change the price at the end of July 2023. “The 12mm 3X6 of structural softwood plywood is 1,600 yen, delivered per sheet. In some areas, the price is under 1,600 yen, delivered per sheet but it has not influenced the market price so far.
“Anticipation of falling prices has been solved and consumers started purchasing structure softwood plywood. Inventory at plywood companies in June 2023 was 0.7 month of shipment, and this is an appropriate level. “There is a shortage of several kinds of plywood but lumber can be found and purchased at other companies,” added the report.
On South Sea (tropical) logs and products, JLR said exchange rate fluctuation has affected South Sea lumber and Chinese lumber. Japanese buyers purchased lumber when the US dollar dropped to 130 yen from 145 yen but they stopped purchasing the lumber as the yen depreciated against the dollar.
Logistic companies are waiting for the right time to purchase lumber. Indonesian Merkus pine lumber is US$820-850, C&F per cu m while Chinese red pine lumber is US$870- 890, C&F per cu m. These prices are steady.
“It is the season for fresh Merkus pine logs in Indonesia and it is not easy to change the prices. “Chinese companies narrow down the orders of raw materials and they are not active to produce lumber. They have decided to not lower the lumber price for Japan because they know that demand for lumber in Japan is very sluggish.”
According to JLR inquiries, South Sea lumber are sluggish due to low demand of deck. “Demand and supply of South Sea logs are balanced. Arrival volume during January to June 2023 is 14,343 cu m, 21.4% less than the same period last year.
The arrival volume decreased by over 20% from last year but there are enough South Sea logs for steel manufacturers and shipbuilding companies. “South Sea log companies in South Asia will not lower the price because they do not have enough logs.”
Data from the Japan’s Ministry of Agriculture, Forestry and Fisheries revealed that shipment of lumber during the JanuaryJune 2023 period declined by six per cent from the same period in 2022 but inventory is 12 per cent more during the same period of comparison. In 1H2023, shipment of logs was nearly five per cent down from 1H2022. “Arrival volume of domestic log at the first half of 2023 is 6,494,000 cu m, 3% down from the first half of 2022.”
