KUCHING: Japan’s monthly plywood imports have continued the downtrend, which began in mid-2022. In July 2023, plywood arrivals in Japan were down 42 per cent from a year ago, with all the shippers seeing year-on-year decline in the shipment value.
“The volume of shipments from Malaysia and Indonesia (top two supplying countries) were down sharply,” according to data provided by the Japan Finance Ministry quoted by International Tropical Timber Organisation (ITTO) in its tropical timber market report (Sept 1-15, 2023).
During the January-July 2023 period (7m2023), Japan imported a total of 747,900 cubic metres (cu m) of plywood, down from 1.22 million cu m in 7m2022. Indonesia shipped 295,900 cu m (7m2022:468,000 cu m) to Japan as the top supplier, followed by Malaysia with shipments of 267,100 cu m (489,500 cu m). Vietnam exported 99,400 cu m (96,600 cu m) while China sold 85,500 cu m (166,700 cu m) to Japan.
The report said compared to arrivals of plywood in Japan in June 2023, import volumes were flat in July for each of the four top suppliers. In July, Malaysia exported 38,800 cu m, Indonesia 43,100 cu m, Vietnam 12,900 cu m and China 10,600 cu m to Japan.
According to Japan Lumber Reports (JLR), the movement of domestic softwood plywood in Japan last month was not good.
“Since the price of domestic softwood plywood reached the bottom in July, there had been orders to trading companies and wholesalers. However, demand of house is unclear in the future, so movement of domestic softwood plywood became slow after the summer holiday in August.
“Consumers purchase only a small amount to fill current needs. Plywood companies in western and eastern Japan left prices unchanged in August.
“Thus, several plywood companies would raise the price in September because of increasing fuel expenses, electricity bills and salaries. “Volume of imported plywood has been decreasing and demand of imported plywood is not active after the summer holiday ended in August,” it added.
On logs, the JLR said the volume imported by Japan in 6m2023 was down by 9.3 per cent from 6m2022, and one of the reasons for the decline is that Russia banned exporting logs to overseas buyers.
In 6m2023, Japan’s laminated structural lumber imports plunged by 42.8 per cent to 281,102 cu m as compared to 6m2022. And this is for the first time in 13 years that the import was under 300,000 cu m.
“The reason is that orders for laminated structural lumber have been a small volume since last year due to excessive supply. Volume of laminated small lumber, such as laminated post, decreases a lot from first half of 2022.
“Laminated structural lumber from Finland is 130,713 cu m, 32.1 per cent down from the same period last year. Laminated structural lumber from Romania is 38,156 cu m, 57.8 per cent down from the same period last year. Imports from Austria declines by 49.4 per cent, Russia declines by 47.3 per cent and China declines by 64.1 per cent.” According to the Japan Lumber Importers’ Association, the volume of imported lumber during 6m2023 is 4,438,000 cu m, 34 per cent less than the result of January to June 2022.
This volume would not exceed the result of 1962 which was 9,310,000 cu m. “Imported logs is 1,058,000 cu m, 26.7 per cent less than the same period last year due to a decrease in North American log. Imported lumber is 1,692,000 cu m, 40.5 per cent less than the same period last year. “European lumber decreases 43.5 per cent from the first half of 2022.
The woodshock, which occurred in Spring 2021, started to calm down in Autumn 2021. “However, volume of imported lumber at the first half of 2022 was massive volume because the lumber arrived in Japan very late. Then trading companies decreased a number of orders for lumber at the second half of 2022.
“Therefore, the volume of lumber at first half of 2023 plunged. North American log and lumber are 29.8 per cent down, European log and lumber are 43.3 per cent down,” said the association. Japan’s imports of laminated structural lumber are 281,000 cu m in 6m2023, 42.8 per cent less than 6m2022. Plywood is 33 per cent less than 6m2022.
