Japan: Plywood prices
Plywood manufacturers in Japan are desperately trying to find ways of improving company profitability after a long period of poor demand and low prices coupled with increasing log and adhesive costs.
The JLR says that there are some signs of demand recovery but plywood dealers are resisting the higher prices as these are not demand driven but are being demanded by plywood manufacturers. At the moment, the manufacturers are able to push up prices so that the dealers have no choice but to accept the new price levels and to try and pass these on to endusers.
According the JLR, both Malaysian and Indonesian plywood mills are facing difficulties in securing adequate supplies of logs. This, and the fact that one of the largest plywood manufacturers in Malaysia has decided to delay a decision on its new price structures until June, is adding pressure to the calls to raise plywood prices. The latest offer price from suppliers for 3x6 concrete formboard at US$480 per cu.m C&F was made in April, up US$25 per cu.m on earlier levels.
The wholesale price in Japan for concrete formboard for coating is mixed and supply is tight says the JLR. Prices are said to be firming at a level of Yen 780- 800 per sheet for 2x6 and this is Yen 20-30 per sheet higher than a month ago.
Importers are proposing a price of Yen 900 per sheet delivered for 3x6 concrete formboard while the market level is still hovering around Yen 880-890 per sheet.
March plywood supply improves
The total supply of plywood in March was 457,100 cu.m, almost 8% up on levels in March last year and an improvement on levels in February this year. Plywood imports fell while domestic production increased.
Imports from Malaysia and Indonesia dropped while imports from China increased considerably. First quarter imports of plywood from China were up by more than 50% compared to the level in the first quarter 2009. In March, plywood sales grew and inventory levels declined by around 5% according to the JLR. Inventories in March stood at 162,600, the lowest level since May 2007.
The JLR says that there are some signs of demand recovery but plywood dealers are resisting the higher prices as these are not demand driven but are being demanded by plywood manufacturers. At the moment, the manufacturers are able to push up prices so that the dealers have no choice but to accept the new price levels and to try and pass these on to endusers.
According the JLR, both Malaysian and Indonesian plywood mills are facing difficulties in securing adequate supplies of logs. This, and the fact that one of the largest plywood manufacturers in Malaysia has decided to delay a decision on its new price structures until June, is adding pressure to the calls to raise plywood prices. The latest offer price from suppliers for 3x6 concrete formboard at US$480 per cu.m C&F was made in April, up US$25 per cu.m on earlier levels.
The wholesale price in Japan for concrete formboard for coating is mixed and supply is tight says the JLR. Prices are said to be firming at a level of Yen 780- 800 per sheet for 2x6 and this is Yen 20-30 per sheet higher than a month ago.
Importers are proposing a price of Yen 900 per sheet delivered for 3x6 concrete formboard while the market level is still hovering around Yen 880-890 per sheet.
March plywood supply improves
The total supply of plywood in March was 457,100 cu.m, almost 8% up on levels in March last year and an improvement on levels in February this year. Plywood imports fell while domestic production increased.
Imports from Malaysia and Indonesia dropped while imports from China increased considerably. First quarter imports of plywood from China were up by more than 50% compared to the level in the first quarter 2009. In March, plywood sales grew and inventory levels declined by around 5% according to the JLR. Inventories in March stood at 162,600, the lowest level since May 2007.
| Mar-10 | %
change 2010 on 2009 |
Jan-Mar 2010 | %
change 2010 on 2009 |
|
| Malaysia |
132,112 |
95.1 |
356,927 |
94.2 |
| Indonesia | 60,020 | 72 | 204,232 | 96.9 |
| China |
34,873 |
154.1 |
126,400 |
151.8 |
| New Zealand | 1,833 | 71.2 | 6,826 | 79.3 |
| Canada |
510 |
59.9 |
1,027 |
81.4 |
| Others |
5,231 |
130.2 |
14,676 |
130.9 |
| Import total |
234,579 |
92.9 |
710,088 |
102.3 |
| Domestic | 222,527 |
129.1 |
619,154 |
120.6 |
| (Softwood) | 189,188 |
131.4 |
528,598 |
125.2 |
| Total supply |
457,106 |
107.6 |
1,329,242 |
110.1 |