Sarawak’s major timber companies gain as prices in export plywood products to key market Japan continue climbing.
Export prices for Sarawak plywood products to Japan have increase more than 10 per cent since late last year and are anticipated to continue the upwards trend.
Sarawak’s top plywood manufacturer and exporter, Miri-based Shin Yang group, had quoted higher export prices to Japan in April.
The price for the (JAS 3×6) concrete forming panel had increased to about US$580 per cu metre and US$680 per cu metre for coated concrete forming panel, according to the Japan Lumber Report’s figures in the May 16-31 timber tropical market report.
Japan is also the biggest client of other Sarawak timber companies, like Ta Ann Holdings Bhd and WTK Holdings Bhd, to whom they sell most of their plywood products.
Japan imported some RM570 million worth of Malaysian plywood in 2017.
In the first three months of this year, Japan imported 282,900 cu metre of plywood products from Malaysia, 12 per cent lower than the 322,000 cu metre in the same period last year.
“Exporting prices of plywood from Malaysia and Indonesia continue to climb,” said the latest ITTO report.
The report said market prices for plywood products in Japan are also rising. “Prices of coated concrete forming JAS 3×6 panel are 1,460-1,470 yen per sheet delivered, 20 to 30 yen up from March, and 1,240-1,250 yen on JAS 3×6 concrete forming panel, 10 yen up.
According to ITTO,, log supply is still slow even though the rainy season that usually hit log producing regions of Malaysia and Indonesia was over in early April. Sources complaint that logging roads are still muddy making log hauling harder, and that it may take another month before log hauling resumes normally.
Plywood mills continue to suffer log shortages and are forced to reduce production, pushing up production cost and log cost. Major plywood exporters like Shin Yang of Malaysia and Korindo of Indonesia propose higher prices for April, stated the report.
Source: the Star Online