KUCHING: Plywood manufacturers in Malaysia and Indonesia are expected to strongly raise the export prices of their products as a result of the strengthening of the local currencies against the US dollar, according to the Japan Lumber Reports (JLR).
The exchange rate of Japanese yen was 140 yen against the US dollar between August-September 2024, and it appreciated to 150 yen against US dollar in October and November.
Therefore the future price of Malaysian and Indonesian plywood prices are higher than the spot price in Japan, said JLR, a bi-monthly trade journal, which is reproduced in International Tropical Timber Organisation (ITTO) Tropical Timber Market Report (December 1-15, 2024).
The trading of plywood between Malaysia and Indonesia is traditionally transacted in the US dollar.
The JLR said the price of 12mm painted plywood for concrete form/normal plywood in South Asia in November was levelled off.
“However, suppliers in Malaysia and Indonesia expect to raise the price strongly because their local currencies are stronger (have appreciated) than the US dollar,” it added.
On domestic plywood in Japan, the JLR said in October and November, shipments of the product increased at manufacturers, trading companies and wholesalers.
Shipment of domestic softwood structural plywood was 204,000 cu m in October, up 10.3 per cent as compared to September, and this was the highest monthly shipment in 2024.
“The plywood price kept declining until the middle of November 2024. However, major plywood manufacturers in Eastern Japan announced that they would stop lowering the plywood price in December 2024. The reasons are that the shipment of plywood increased in autumn, the inventory of plywood at plywood manufacturers decreased, and it will take time to deliver,” it added.
On domestic lumber and logs, JLR said the supply of lumber has been decreasing since September 2024 due to a log shortage, especially cypress lumber is in tight supply.
“As for domestic logs, the price of cedar and cypress logs increases in the northern part of Kanto region and the southern part of Tohoku region.
The price of cypress logs increases in western Japan.
According to JLR, the demand for houses in Japan is low this year and the production dropped from the previous term. But now, the orders started to recover.
