KUCHING: Sarawak’s plywood manufacturers are pushing for higher prices in the Japanese market as they grapple with rising production costs, according to the Japan Lumber Reports (JLR), a bi-monthly trade journal cited in the latest Tropical Timber Market Report by the International Tropical Timber Organisation (ITTO) for June 16–30, 2025.
Key cost pressures include higher log prices, increased minimum wages, and a stronger ringgit against the US dollar.
Japan remains Sarawak’s largest export destination for plywood.
JLR reported that despite a strengthening yen, Malaysian plywood prices continue to climb—particularly for 12mm plywood—suggesting further upward momentum. As of late June: 12mm 3×6 painted formwork plywood: ¥1,850 per sheet (delivered to wholesalers); Standard formwork & structural plywood: ¥1,550 per sheet; 2.5mm plywood: ¥780 per sheet; 4mm plywood:
¥930 per sheet; 5.5mm plywood: ¥1,100 per sheet.
“Some contracts in May saw price hikes of US$10 per cubic metre (C&F),” JLR noted.
In Indonesia, another major supplier to Japan, shortages of falcata and natural wood logs are prompting calls for price hikes.
However, prices remain steady for now, with 12mm 3×6 painted formwork plywood priced at US$590–US$600 per cu m (C&F).
In the Kanto region, imports of tropical (South Sea) plywood declined in May, but extreme shortages have yet to materialise.
Meanwhile, in Japan’s domestic softwood plywood market, profitability concerns persist.
Manufacturers announced a further ¥50 per sheet price increase in June, citing stagnant demand from lumberyards and construction firms, though orders from precutting plants remain firm.
This followed a surge in housing starts in March, as builders rushed to meet new building regulations that took effect in April.
In Tokyo, 12mm 3×6 domestic softwood structural plywood rose to ¥1,080–¥1,100 per sheet in May—an increase of ¥10–¥20 from April.
The ITTO also highlighted a growing trend in Japan toward using timber in larger and taller buildings, as part of efforts to reduce carbon emissions by 60 per cent by 2030 and achieve net-zero by 2050.
Architect Kengo Kuma used certified timber from all 47 prefectures for the Tokyo 2020 Olympic Stadium, while Expo 2025 Osaka will feature a massive timber ring—20 metres high and 2km in circumference—constructed with wood from Fukushima, one of the regions hardest hit by the 2011 disaster.
In Yokohama, Port Plus, the country’s first all-timber fire-resistant high-rise, boasts columns rated for three hours of fire resistance and incorporates earthquake isolation technology to meet Japan’s stringent seismic standards.
