KUCHING: Malaysia’s plywood exports to Japan has expanded by more than 10 per cent in April 2022 to 79,300 cubic metres (cu m) from 71,000 cu m in the previous month of March.
April’s shipment to Japan from Malaysia was the highest monthly recorded in 2022, according to Japan Finance Ministry data. The export figures in January and February were 78,600 cu m and 61,000 cu m, bringing total exports in the first four months to 289,900 cu m.
Malaysia remains the No 1 supplier of tropical hardwood plywood to Japan, with close rival Indonesia ranked second.
In April 2022, Indonesia’s plywood shipment to Japan fell to 72,000 cu m from 76,900 cu m in March. The export volume in January and February were 73,900 cu m and 56,800 cu m respectively, bringing Indonesia’s total shipments to Japan in the first four months to 279,600 cu m.
Japan’s plywood import volume grew by 12 per cent in April, a second month-on-month rise, according to International Tropical Timber Organisation’s (ITTO) Tropical Timber Market report (June 16-30, 2022).
“The major news in April was the doubling of plywood imports from China. At 25,000 cu m, April shipments were at a level not seen since 2014/15. The Japan Lumber Reports has explained that imports of softwood plywood from China have been climbing sharply in recent months,” added the report.
China has now overtaken Vietnam as the third biggest supplier of plywood to Japan, with shipments of 69,300 cu m in the first four months of 2022 against 57,300 cu m recorded by Vietnam.
Of the various categories of plywood imported by Japan in April 2022 (as in other months), HS441231 is the most common type, accounting for almost 90 per cent of total plywood import volume.
According to figures provided by Japan Lumber Report (JLR), Japan imported 11,800 cu m of softwood plywood from China in April 2022, which was a 14-fold increase from a year ago, and doubled the imported volume in March. The report attributed the soaring import volume to the chronically short supply of domestic softwood structural plywood. It expects Japan’s high level imports to continue for some time.
“(Japan’s) imports of Chinese softwood plywood in 2019 was 10,900 cu m ason, the import in April (2022) exceeded one year import of 2019. Since last summer, wholesalers started purchasing Chinese products since the supply of domestic plywood has priority to direct sales to pre-cutting plants.
“Chinese plywood mills see that tight supply of softwood plywood (in) Japan seems to continue, so many try to acquire JAS certificate and the present high price of over 2,000 yen per sheet is good enough to make profit. Also China can buy Russian larch veneer, which is the main material for the Japanese plywood manufacturers. With Russia stopped from exporting to Japan (due to sanctions related to the Russian-Ukraine war), Chinese manufacturers have plenty of raw materials.
“However, there are criticisms to use plywood with Russian material among house builders in Japan. The prices of Chinese plywood have gone up to 2,300 yen per sheet, so the dealers are becoming cautious in buying for future,” said JLR, its bi-monthly trade journal of which is reproduced by ITTO report.
The JLR report said housing starts in Japan may decline after summer and once the demand weakens, import plywood will be the first one to be dumped and this would create confusion in the plywood market.
Japan’s import volume of softwood plywood from China was less than 2,000 cu m before it increased sharply from January 2022 to 1,902 cu m, February (3,975 cu m), March (5,844 cu m) and April (11,853 cu m). April volume comprise 3,268 cu m of 6-12 mm thick and 8,519 cu m of 12 mm or thicker panel.
On JAS certified lumber, the Japan Lumber Inspection and Research Association disclosed that the volume certified in 2021 was 1,088,251 cu m, up 7.9 per cent or 79,397 cu m than 2020. This is slightly higher than 1,086,452 cu m in 2018, the highest level recorded.
“The volume of domestic lumber increased for four consecutive years with 387,625 cu m, 3.6 per cent more than 2020. In the meantime, certified imported lumber was 700,626 cu m, 10.4 per cent more than 2020, the first increase in two years. Share of imported lumber is 64.4 per cent and domestic is 35.6 per cent. Number of JAS certified lumber is 301 out of total of 496,” it added.
