KUCHING: Indonesian plywood, both all-natural wood and falcata-combination types, has maintained a firm pricing trend in the Japanese market.
This firm market tone is driven primarily by elevated log prices due to limited log availability.
Thin plywood, which depends on high-grade logs, is experiencing tight raw material supply, according to the latest Japan Lumber Reports (JLR).
“The quoted origin price for Indonesian ordinary plywood is approximately US$970 per cubic metre for 2.4mm thickness (3×6 panel), US$880 for 3.7mm and US$850 for 5.2mm — all on a C&F (cost & freight) basis, with lower prices available depending on the deal.
“Compared to last month (October), prices have held steady: US$600-610 per cubic metre for painted formwork plywood, US$500-510 for standard formwork and US$510-520 for structural plywood (all C&F).
“For the wood construction market, domestic painted formwork plywood (12mm thick, 3×6 panel) is trading at 1,800yen-1,850yen per sheet (delivered) while both standard formwork
and structural grades are approximately 1,550yen. Prices for standard plywood remain firm, with 2.5mm at around 780yen, 4mm at 930yen and 5.5mm at 1,100yen per sheet (wholesaler delivery),” said JLR, its publication of which is reproduced in International Tropical Timber Organisation (ITTO) Tropical Timber Market Report (November 16-30, 2025).
Indonesia and Malaysia are the largest plywood suppliers to Japan.
The JLR report said shipments of domestic plywood in Japan have picked up this Autum, mainly driven by demand from precut factories. In October, domestic softwood structural plywood (12mm 3×6 panel) was priced at approximately 1,100yen per sheet (wholesaler delivery in the Tokyo area),largely flat compared to the previous month.
“As builders accelerated construction during September and October, precut factories began operating at higher utilisation rates. Among domestic products, cedar studs are in highest demand, with some mills carrying a one-month order backlog since September.
“Likewise, 90mm square cedar and cypress are in short supply, prompting producers to adopt a stronger position on price increases when dealing with large housing firms,” said the report.
Last year, Japan’s wood exports to the United States (US) totalled some 5.6 billion yen (RM147.6 million), making it the third largest export destination after China and the Philippines, according to the country’s Forestry Agency.
Japan shipped 2.7 billion yen worth of cedar lumber to the US last year, accounting for about 49 per cent of the country’s overall volume of wood exports, and are subject to a 10 per cent tariffs.
The import tariffs imposed by US President Donald Trump on lumber and related products took effect from October 14, this year. Softwood lumber, logs and processed goods such as sofas and furniture, are subject to tariffs ranging from 10 per cent to a maximum of 15 per cent.
In 2024, Japan exported wooden fittings, bamboo products, softwood edge-glued lumber, wooden tableware and other items totalling some 2.9 billion yen in value to the US. All these products are now subject to a 15 per cent tariffs.
Meanwhile, according to JLR, softwood lumber which US imported from Canada is subject to a 10 per cent tariff, and when combined with existing duties — namely anti-dumping and countervailing duties – the total average tariff on Canadian softwood lumber reaches about 45 per cent.
“Shippers are closely monitoring the situation. As domestic market prices in the US have not risen to offset the previous tariff increases, the additional Trump tariffs are expected to deal a further blow, leading to a series of temporary closures of lumber mills due to worsening profitability.
“Due to last-minute purchases by buyers ahead of the increase in anti-dumping and countervailing duties. The market is now oversupplied. In addition, winter is typically an off-season for demand in the US and a recovery is unlikely until Spring,” said JLR.
