world news - 17.12.2003

Japan: Highest Plywood Imports

As reported, September plywood imports were the lowest this year but, surprisingly, October arrivals jumped to the highest of the year. However, imports (including blockboard) in October were 480,000 cubic metres, which although 6.6% lower compared to the same month last year, is still the highest monthly import this year. Supply sources expanded as more Indonesian mills can produce to the new JAS requirements and have the necessary certificate. Also, importers had delayed clearing imports until October as they were readying to for their interim accounts closure at the end of September and did not want to be carry over big inventories. These factors pushed up the import volume.

As importers had very low inventories, even though arrivals were considerable most seems to have been absorbed smoothly by the market and there are no surpluses reported. Commodity items such as imported concrete formboard plywood and domestic 12 mm softwood panels are still short in supply so the extra high imports has had no negative impact in the market say wholesalers.

In terms of source, 246,000 cubic metres was from Indonesia, 24% up, year on year and 187,000 cubic metres was supplied by Malaysia, an increase of around 40%. The Indonesian supply once again surpassed that from Malaysian.

China shipped 20,600 cubic metres, 12.9% up on the same period last year and this is the third straight month when arrival from China have been at this level and the Japan Lumber Report says this is because demand for crating quality plywood in Japan is steady. However, November arrivals from China are likely say analysts as the major supplier, Global Timber suspended its plywood production since the end of October.

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