KUCHING: Japan’s total imports of plywood from Malaysia dipped by about five percent in January and February 2019 from a year ago. In February, Japan imported 86,500 cubic metres (cu m) of plywood from Malaysia, which was lower by 7.2 percent as compared to January this year.
During the first two months of this year, Japan also reduced its total imports of plywood from Indonesia – by four percent. February’s imports amounted to 83,200 cu m.
Malaysia and Indonesia are the top two exporters of hardwood plywood to Japan.
“Because of escalating export prices and weak demand in Japan, the importers are not so anxious to commit future volume.
“Plywood market is deadlocked. Demand for domestic softwood plywood is steady by pre-cutting plants but wholesale channel is dull and some low offers are going around.
“Imported plywood is weak in demand but high priced cargoes keep arriving, so price reduction is impossible,” according to the latest edition of Japan Lumber Reports (JLR), which is published every two weeks.
JLR is reproduced by the International Tropical Timber Organisation (ITTO) Tropical Timber Market Report.
JLR said imported plywood market was confusing as although demand in Japan remains weak, suppliers are bullish as they insist on selling cost base prices.
“Some suppliers switch to container from bulk carriers (to transport the plywood), which plugs up port warehouses, so warehouse companies are increasing handling charge, which is another cost up factor.
“The market prices are weak by soft demand.”
In February, Japan’s total plywood supply was 489,800 cu m, which was down by five percent against January, and for the first time the supply dipped below 500,000 cu m.
According to JLR, domestic production continued to be active but the imported plywood supply has declined.
Softwood plywood production in February was 252,800 cu m, which was an increase of 4.1 percent from a year ago and 2.2 percent more than January.
Non-structural plywood production was 21,700 cu m, which was an increase of 21.8 percent from a year ago and 11.5 percent in January. This is to replace declining imported hardwood plywood for flooring.
In its review of 2018 Japan’s wood panel market, JLR said total supply of wood panels (plywood and wooden board) was higher by 0.2 percent in 2017 to about 9.15 million cu m (domestic panels were about 5.06 million cu m and imported panels 4.08 million cu m). The ratio of domestic and imports panels was 55.4 percent to 44.6 percent.
Domestic supply of wooden board was down by about 37,000 cu m but that of imported panels increased by 33,560 cu m.
According to JLR, the market for wood panels in 2018 stayed firm, supported by active demand.
“Total imported plywood in 2018 was 2,923,056 cu m, 0.7 percent more than 2017. By source, 1,062,086 cu m from Malaysia, 10.8 percent less than 2017; 977,557 cu m from Indonesia, 11.4 percent more than 2017; 642,008 cu m from China (1.9 percent less) and 241,405 cu m from other countries (32.2 percent more).
“Export prices of uncoated concrete forming 3×6 panel were (US)$520-530 per cu m C&F and coated concrete forming panel were $600 (per cu m) at the beginning of the year and the prices climbed to $580-590 and $680-690 by the end of 2018. The increase was $50-90 in one year.
“Also Indonesian 2.4 mm thin panel prices climbed by $300 (per cu m) in six months to $1,110,” it added.
JLR said as the suppliers were determined to sell based on actual cost, so the export prices have been climbing month after month. The Japanese buyers had to accept the high prices.
It was reported earlier that plywood suppliers from Malaysia and Indonesia have to increase the export prices of their products due to acute shortage of logs and increase in production cost brought about by higher wages.
On Japan’s housing starts, JLR said the March 2019 figure was 10 percent higher than a year ago and 6.5 percent higher month-on-month.
“The good figures for March mark the third straight rise in starts this year. However, total starts in the first quarter of 2019 were unchanged from levels in first quarter 2018.
