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Japan: Tropical log demand improves |
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Demand for tropical logs from manufacturers in Japan is increasing according to the Japan Lumber Reports (JLR) and FOB prices are firming on the back of this renewed buying. Plywood mills in Malaysia and Indonesia are maintaining reduced production levels in the face of the weak demand for plywood but there are indications that they have started to rebuild log inventories. This is supporting an improvement in domestic log prices.
Japan’s monthly consumption of tropical logs is around 45,000 cubic metres and this was maintained in January but there are signs of slightly higher production levels in Japanese mills so stocks must be falling.
Market prices for Sarawak Meranti Regular are currently around Yen 6,400 per koku CIF up 200 from levels in March. Prices of Yen 5,400 for Meranti Small and Yen 4,900 for Meranti Super Small are an improvement of levels seen in March.
Supporting the upward movement in log FOB prices has been renewed active buying for the Chinese and Indian markets. The JLR is saying that log shipments during April will be affected by a diminished supply in the producer countries with Meranti Regular logs being particularly affected.
Current prices for Meranti Regular are around US$190 per cubic metre but suppliers are pushing for a price of US$200. Kapur prices in Sabah are also moving up sharply on the back of strong demand from buyers in China.
February plywood supply
The availability of both domestic and imported plywood during February was 102% higher than in February 2009 and more than 100% more than in January this year. However, plywood imports in February 2009 were the lowest for 21 years, so this improvement is not so startling.
Imports of plywood from all sources increased during February. Imports from Malaysia were up 126% and imports from Indonesia jumped 134%. The biggest increase was seen in imports of plywood from China which grew 250% because of the demand for low priced Poplar crating plywood. According to the JLR plywood inventory levels at the end of February were up slightly from January levels.
Plywood imports
| February
2010 (cu.m)
| Feb-10 compared to
Feb-09
| Malaysia
| 113,484
| 126%
| Indonesia
| 75,558
| 134%
| China
| 40,234
| 250%
| New Zealand
| 3,902
| 99%
| Canada
| 203
| 94%
| Others
| 4,833
| 149%
| Total
| 238,214
| 141%
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source JLR
(ITTO's Tropical Timber Market Report)< |
| [01.05.2010] |
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