Total plywood supply in April was 583,000 cbms, 18.0% more than April last year and 6.1% more than March, which is the largest in two years since May 2011.
In particular, arrivals of imported plywood increased by about 30,000 cbms. from March and domestic softwood plywood production exceeded 220,000 cbms.
Imported plywood in April was 347,900 cbms, 23.3% more than April last year and 9.4% more than March, the highest since July 2011.
Volume by source is 164,900 cbms from Malaysia, 39.2% more and 7.8% more. 75,500 cbms from China, 24.5% more and 31.6% more.
Average monthly arrivals in last twelve months were 303,000 cbms, about a 5,000 cbms increase from the average until March.
Reason of the increase of Malaysian plywood is that the largest supplier shipped cargoes waiting shipment all at once in March with larger fleet with a newly built ship.
May arrivals are estimated over 300,000 cbms but with declining future purchase, the arrivals after June are expected to decrease.
Domestic plywood production in April was 235,100 cbms, 11% more than the same month a year ago and 1.6% more than March, out of which softwood plywood was 220,100 cbms, 14.0% more and 1.7% more.
This is the largest production in about six years. The shipment of softwood plywood in April was 221,100 cbms, 14.4% more and 1.0% more. This is seventh straight months with over 200,000 cbms.
The inventories were 124,000 cbms, about 1,000 cbms less than a month ago.
Price trends for imported Indonesian and Malaysian plywood
Data source: Nikkai Mokuzai Shimbun
Data source: Nikkai Mokuzai Shimbun
Composite floor market
Composite floor manufacturers need to pass higher manufacturing cost onto sales prices. They announced price hike in June but each manufacturer has different attitude of price increase, depending on volume and price.
Base material of composite floor is imported plywood. From ordering, shipment, unpacking to storing at the plant, it takes more than a month so that it takes time that exchange rate influence the cost.
Low cost inventories with exchange rate of around 80 yen have been consumed and recent materials’ cost is getting higher as the yen is weakened over 100 yen.
FOB prices of tropical hardwood plywood have been unchanged at around $690 per cbm C&F so that the factor to influence is exchange rate.
Plywood
Domestic softwood plywood market has been active with busy demand and the mills enjoy brisk shipment and the inventories remain in low level.
In the first quarter, there were some speculative purchases among wholesalers, which simmered down then in the second quarter was much busier than expected and the shipment increased.
April production and shipment surpassed 220,000 cbms, which was the highest production in about six years since June of 2007 then the shipment was also the largest since November 2011, fifth largest monthly shipment in all time.
The main driver of the demand is house builders and pre-cutting plants. April shipment exceeded the production and the inventories were 124,000 cbms, about a half month demand so with busy demand continuing, securing the volume becomes priority issue for users.
The prices in Tokyo market are 930 yen per sheet delivered on 12 mm 3x6 (special type/F4 star), 20 yen up from May, 1,870 yen on 24 mm 3x6 thick panel, 40 yen up, 1,370 yen on 9 mm 3x10 long panel, 20 yen up.
Imported plywood market in Japan remains unchanged while the plywood manufacturers in South East Asian countries continue pushing the export prices by log shortage and higher log cost. The market prices in Japan stay flat so that there are large gap between export prices by the suppliers and market prices in Japan.
Actually the arrivals in April and May increased and the supply eased. The importers are asking higher prices but the market refuses price hike.
The market prices are about 1,130 yen per sheet delivered on JAS concrete forming 3x6, about 1,230 yen on 3x6 concrete forming for coating.
Both are unchanged from May. Only item with higher prices are 12 mm structural panel at 1,150 yen, 20 yen up.