Volume 56 Number 13 (July 15, 2015)

Transcription

Semi-Monthly
Wednesday, July 15, 2015
ISSN 0021-4477
Volume 56 Number
13
The Japan Lumber Importers’ Association held
General Meeting for 2015
The Japan Lumber
I m p o r t e r s ’
Association (JLIA)
held its annual general
meeting for fiscal
2015 at Genboku
K a i k a n i n To y o cho, Tokyo on June
12. They discussed
and approved the
presented business
report and settlements
of account for fiscal
Satoru Yasuda as the new chairman of 2014, as well as the
the Association
budget and business
plan for fiscal
2015. It was approved Satoru Yasuda (Sojitz Building
Materials Corporation) to take office as the chairman,
replacing Masaru Ogawa. Also announced and approved
was a change in the board members in accordance with
the personnel reassignment in the member companies.
Haruhiko Momose (Sumitomo Forestry) took office as
the director of Southsea and Plywood Division, and Ken
Suzuki (Itochu Corporation) as the director of Softwood
Division. Besides, introduced were newly joined members
as follows: Sampo Bussan Co., Ltd. (Southsea and
Plywood), Toyotex Co., Ltd. (Southsea and Plywood),
Oshika Co., Ld. (Softwood, Southsea & Plywood), and
Hot Topic:
Chugoku Mokuzai Co., Ltd. completed the first stage
of construction of its Hyuga Factory (Takeshima Town
in Hyuga City, Miyazaki Prefecture) and held a ceremony on June 6. > Page 2
Copyright © 2015, JLJ Inc.
Western Forest Products Inc. (Softwood).
Mr. Yasuda, who took office as the chairman, touched on
the illegal logging problems, which JLIA has been putting
more efforts to solve lately, in his speech as follows: “I
would like to work on it hard and to perform the yearly
duty as best as I can.” As a guest, Makoto Yoshida,
Director of the Wood Utilization Division of the Forestry
Agency told that “Imported wood supports Japan’s
demand for wood. While the illegal logging problems
are increasingly getting worldwide attention, adequate
measures are expected to be taken when operating your
wood import business,” showing a strong expectation to
JLIA’s activities.
JLIA mentioned its basic policies for fiscal 2015 as
follows: 1) Working on stabilization of wood supply and
expansion of wood use, 2) strengthening the relationships
and exchanging information with the industrial
organizations home and abroad, and 3) Dealing with
the problems of illegal logging. JLIA has been tackling
actively with the problems of illegal logging for the past
few years. It is to continue to ask overseas counterparts
for supplying certified wood and legality-proven wood,
while working hard on supply and spread of verifiably
legal wood to the Japanese market. JLIA plans to have
dialogues with overseas industrial organizations: A
regular dialogue with Indonesian and Malaysian parties
in around September, and a regular meeting with the
American wood industry in December. Also JLIA plans to
hold Canadian Wood Seminar jointly with the Council of
Forest Industries Canada, which is hosting the seminar, in
June.
The member companies of JLIA shared in Japan’s import
of major wood for 2014 as follows: 70.6% in Southsea
wood (including plywood), 47.2% in North American and
(Continued on Page 2)
Japan Lumber Journal
Page 2
European wood, 89.7% in Russian
wood, 71.5% in New Zealand and
Chilean wood, 40.4% in Chinese
wood, and 49.0% in fiber board
(including OSB).
:Company:
Chugoku Mokuzai to
build a new factory in
Miyazaki Prefecture
Chugoku Mokuzai Co., Ltd. (Head
O ff i c e : K u r e C i t y, H i r o s h i m a
Prefecture; President: Tomoko
Horikawa) completed the first stage
of construction of its Hyuga Factory
(Takeshima Town in Hyuga City,
Miyazaki Prefecture) and held
a ceremony on June 6 with over
600 people from Japan and abroad
attending.
The factory covers a large site of
417,000 m² including a laminated
wood factory (99,000 m²), which
is scheduled to be completed next
spring, and is taking shape as a major
production base for domestically
produced lumber.
Tomoko Horikawa, President of Chugoku
Mokuzai Co., Ltd.
Miyazaki Prefecture is a forestry
prefecture with the largest amount of
cedar shipments in Japan, and it has
no problems in terms of supplying
logs including to its neighboring
prefectures. In addition, the factory
is located in an industrial park at
Hososhima Port, which faces the Sea
of Hyuga, and also as an outstanding
point, because a large-scale, private
berth has been set up, shipments can
be made not only in Japan but also
easily to various regions in Asia such
as South Korea, Taiwan, and China.
With anticipation of the arrival of the
era of domestic wood, the company’s
strategy takes into consideration both
the regions supplying logs and the
destinations of the products being
sold.
The factory will expand its business
field from lumber products to the
production of laminated lumber, to
drying, and up to the generation of
electric power through incineration,
and it will thoroughly use
domestically produced logs.
Tomoko Horikawa said with pride
that this method in Hyuga is a
“regional creation type of business.”
Capital is forecasted to total up to
35.0 billion yen.
For the present, 300,000 m³ annually
of domestic logs consisting mainly of
cedar will be processed. From large
diameter logs to small and medium
diameter logs, the use of wood
including previously unused wood
such as curved wood from the “whole
mountain” will be planned for. A
large-scale, biomass power plant will
be at the center of the factory site.
The large facility will have a power
output capacity of 18,000 kilowatts,
and the steam will be used in the
drying facility. The drying facility
will have 30 high-temperature
drying machines and 12 mediumtemperature drying machines for
a total of 42 drying machines, and
using a large open site, a natural
drying area will be set up.
At the laminated lumber factory,
which is scheduled to be completed
next spring, 4,000 m³ of cedar
“kudabashira” connective posts will
be manufactured moving up to 9,000
m³ at the end, and the company will
enter the whitewood “kudabashira”
connective post market.
At the end of his greetings speech,
Yasuyuki Horikawa, the executive
director and chairman, said, “It is
important for the mountains and
the factories and the sales outlets to
make a profit. For this factory, there
is a system that makes this possible.
The automated production line
The drying facility has 42 drying machines
Page 3
In the long term view standing from
Japan, we’d like to be the best in the
world.”
:Data:
Report of survey on
building extension and
renovation
The Ministry of Land, Infrastructure,
Transport and Tourism recently
released to the public “Building
Extension and Renovation Survey
(Orders Taken in the First Half of
Fiscal 2014).” According to the
report, the number of orders for
building extensions and renovations
(estimates) in the first half of fiscal
2014 (April to September) totaled
2,696,783 (4.9% decrease compared
to the same period in the previous
year) with a sales value of 5.1111
trillion yen (12.1% decrease).
Within this overall total, the number
of orders involving housing was
2,027,077 (8.9% increase) with a
sales value of 1.9868 trillion yen
(11.5% decrease). Although the
consumption tax rate was raised to
8%, many construction orders were
seen as being postponed until after
April due to delays at the work site
because of a shortage of skilled
workers, so the number of orders
increased from the same period in the
previous year. Based on the type of
construction, “partial reconstruction”
increased 56.3% while “remodeling”
also increased 8.2%, but because
“extension,” which becomes
r e l a t i v e l y l a rg e - s c a l e , g r e a t l y
decreased in its number of orders,
the sales value of construction orders
involving housing decreased more
than 10%.
The number of orders involving
non-housing buildings was 669,707
(31.2% decrease) with a sales
value of 3.1244 trillion yen (12.4%
decrease), so the share of housingrelated construction accounted for
38.9% of the overall sales value total
fell 0.3 points from the same period
in the previous year.
Within the construction involving
housing, the sales value was 938.6
billion yen (14% increase) for orders
for single-family houses and 982.9
billion yen (27.4% decrease) for
apartments and condominiums.
Apartments and condominiums,
which moved ahead with construction
work at an early stage in anticipation
of the rise in the consumption tax
rate, largely decreased, and privately
owned single-family homes, in
which plans had fallen slightly
behind, increased, so the results were
contrasting.
:Wholesalers’ view:
Southsea timber market
in June
Due to several reasons, the Tokyo
chapter of the Japan Southsea
Lumber Conference decided to
cancel its monthly meetings for a
while. It will only release related
materials every month.
As for conditions in producing
areas, in Malaysia, the weather has
recovered, and it has been hot. The
polarization is progressed between
companies which saw their log
output recovering from the previous
month and those who did not. There
is a rumor that the sawmill in Sibu
area will be closed. The measure to
strengthen the efforts to crack down
illegal logging started having the
impact not only on plywood factories
but also on sawmills.
In Malaysia, the export of plywood
for the Middle East is declining,
and prices are also falling. As for
the plywood for Japan, as Japanese
trading companies placed new orders
in bulk in late May, factories which
mainly produce plywood for concrete
forms and structural use will be tied
up with work in June or till mid-July.
FOB of Southsea Logs
2014
Highest
Lowest
Sarawak Logs
Meranti SQ-up
Meranti Small
(US$ per cubic meter)
2015
May
June
July
2nd Week 1st Week 2nd Week
273-277
297-301
300-304
294-298
(Small 70%, S.S. 30%)
242-246 232-236
Ocean Freight
Sarawak
55.0
53.2
Yen/US$
*SQ = second quality, S.S. = super small
254-258
255-259
250-254
54.0
120.0
54.0
124.0
54.0
123.3
283-287
Page 4
Production volume and inventories of
major plywood factories in Malaysia
are down in general, and some
factories are trying to get new orders
for plywood for Japan.
price negotiation easier. There have
been some changes in the supply and
demand for the Southsea plywood
with the shortage of raw wood taking
place in Malaysia.
Plywood factories in Indonesia
are becoming aggressive in order
to take the market in Japan from
Malaysian plywood. Partly due
to a progress in the decline of the
yen, the price negotiation with the
Japanese side is tough. However,
once the share expands, the import
volume will increase, making the
The arrival of Southsea logs in May
was large, standing at 31,796 cubic
meters, and there were arrivals from
Sarawak and Sabah. The shipment
was 23,957 cubic meters, and the
inventory increased to 68,388 cubic
meters or 3.29 months.
The imports of Southsea lumber
Supply/Demand of Southsea Logs
Imports of Southsea Logs by Origin
(1,000 cubic meter)
Southsea Logs
Import
2011
2012
2013
2014
2015 YTD
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sep.
Oct.
Nov.
Dec.
Total Sabah SRWK
510.9
94.6
360.3
332.7 121.1
255.5
292.2
63.8
180.7
265.9
86.4
143.5
95.2
31.5
48.5
22.1
8.6
11.4
19.3
5.8
6.5
7.1
7.1
15.0
4.9
3.9
31.8
12.1
19.7
products in May were 6,724 cubic
meters of lumber, 11,373 cubic
meters of the processed lumber and
24,462 cubic meters of free boards
for a total of 42,559 cubic meters.
The import of lumber was down by
14.9% from the same month in the
previous year while the import of
processed lumber and free boards
was down by 15.3% and 14.2%
respectively. The arrival of all 3
items continued to decline.
Slmn. PNG
42.5
58.7
18.5 115.8
21.3
67.0
4.5
55.8
2.8
12.4
2.0
2.8
4.2
6.2
-
Import
Total
510.9
332.7
2011
2012
2013
2014
2015 YTD
Jan.
Feb.
Mar.
Apr.
May
June
July
Aug.
Sep.
292.2
265.9
95.2
22.1
19.3
7.1
15.0
31.8
(1,000 cubic meter)
Southsea Logs
Stock
Demand
Total for PW for Lbr
559.6
467.3
92.3 138.0
509.1
402.4
106.8 140.1
375.8
304.5
101.3
18.9
18.7
22.3
17.4
24.0
299.7
214.7
77.1
13.9
12.5
17.0
12.7
21.0
76.1
89.8
24.1
5.0
6.2
5.3
4.7
2.9
97.0
84.7
77.6
78.2
63.0
60.5
68.4
Oct.
Nov.
Dec.
Import Results of Southsea Lumber Products
Overall Lumber Products
YTD
Lumber
YTD
y/y
Processed lumber
YTD
y/y
(unit: cubic meter; %)
Free boards
YTD
y/y
y/y
2015 May
China
17,690
84,111 -22.0
640
2,751 -16.2 4,544 25,274 -29.7 12,506
Malaysia
6,488
39,278
-9.3 3,573 23,757
Indonesia
13,437
63,504
-8.9 1,591
Vietnam
2,432
16,459
-1.5
7
Philippines
1,321
6,256 -13.3
594
56,086 -18.2
-9.2 2,404 13,182
-6.0
511
2,339 -24.6
6,643 -17.0 3,117 15,222
3.2
8,729
41,639 -11.4
11,059
857 -23.0
2,917
-5.2
631
4,543
18.0
1,794
302
1,297 -22.4
425
-5.9
2,042 -17.3
Page 5
:Housing data:
Housing Starts in May
According to a report released by
the Ministry of Land, Infrastructure,
Transport and Tourism on June 30,
Japan’s housing starts of owner-occupied, rental and built-for-sale
houses all increased in May, and total
housing starts in May were 71,720
units (up 5.8% from the same month
in the previous year), surpassing the
previous year’s results for three consecutive months. The floor area of
housing starts was 5,986,000 square
meters (up 3.5%), increasing for the
first time in 16 months. The seasonally-adjusted annual rate was 911,000
units (down 0.2% from the previous
month), surpassing 900,000 units for
four consecutive months.
Analyzing the results of May by
owner/occupant, housing starts of
owner occupied houses rose 1.1%
to 22,542 units, the first increase in
16 months, showing a recovery from
the prolonged reactionary decline in
demand following the rush demand
prior to the consumption tax hike.
Housing starts of rental houses,
which showed a decrease in previous
month, also increased 2.8% to 28,208
units. Those of built-for-sale houses
were up 18.1% to 20,594 units, mark(Continued on Page 8)
Housing Starts by Region
(unit of home / %)
Tokyo metropolitan Chubu region
Kinki region
unit
y/y
unit
unit
y/y
2015
APR
MAY
JUN
27,703
25,258
11.1
9.5
8,188
8,411
-5.1
5.5
9,823 -20.9
10,416
3.2
Housing Starts
TOTAL
Structure
nonwooden
wooden
Other regions
y/y
unit
y/y
owneroccupied
29,903
27,635
2.0
3.7
(unit of home)
Owner / Occupant
built-forrent
COH
sale
2014
TOTAL 892,261
489,463
402,798
285,270
362,191
2015
YTD
352,489
189,394
163,095
108,283
141,582
Jan.
67,713
36,196
31,517
20,282
26,856
Feb.
67,552
35,999
31,553
20,813
25,672
Mar.
69,887
38,252
31,635
21,352
30,243
Apr.
75,617
40,796
34,821
23,294
30,603
May
71,720
38,151
33,569
22,542
28,208
June
July
Aug.
Sep.
Oct.
Nov.
Dec.
*source: Ministry of Land, Infrastructure, Transport and Tourism
*COH=company owned houses to be rented to their employees, etc.
7,372
237,428
2,863
533
622
732
600
376
99,761
20,042
20,445
17,560
21,120
20,594
Housing Starts of Built for Sale, Prefabricated and 2 x 4 homes
(unit of home / %)
Built for Sale
unit
y/y
Annual Starts
2011
234,571 16.2
2012
246,810
5.2
2013
263,931
6.9
2014
237,428 -10.0
Monthly Starts
JAN. 2015
20,042 -11.2
FEB
20,445 11.2
MAR
17,560 -4.9
APR
21,120 20.3
MAY
20,594 18.1
JUN
JUL
AUG
SEP
OCT
NOV
DEC
Condominiums
Single family homes Prefabricated homes 2 x 4 homes
unit
y/y
unit
y/y
y/y
y/y
unit
unit
116,755 28.9
123,203
5.5
127,599
3.6
110,475 -13.4
116,798
122,590
134,888
125,421
5.8
5.0
10.0
-7.0
126,770
132,244
146,402
140,501
0.1
4.3
10.7
-4.0
98,248
107,487
120,111
111,503
2.2
9.4
11.7
-7.2
10,377 -13.1
10,693 23.3
7,575 -8.6
11,071 24.4
11,322 54.9
9,511
9,630
9,887
9,893
9,148
-9.7
-0.2
-1.6
-7.9
-8.8
11,774
10,672
11,595
10,881
11,490
-9.1
-1.5
9.4
1.4
7.7
8,230
8,132
8,936
9,384
8,281
-5.4
2.4
3.8
5.5
1.2
Page 6
Japanese Market Indications
2014
July
North American
Logs
Hemlock Coast No.3, 12" up
Douglas Fir SS No.3, 12" up
Douglas Fir Coast No.3, 12" up
Douglas Fir mid-dia., 8/11, J-sort
p.c.m=per cubic meter
2015
Jun
July
(Yen; wholesale prices, on truck)
23,400
27,720
25,920
24,120
23,400
28,800
26,640
24,840
23,400
28,800
26,640
24,840
p.c.m
50,000
58,000
50,000
58,000
48,000
49,000
60,000
56,000
53,000
125,000
57,000
125,000
150,000
74,000
240,000
52,000
60,000
52,000
60,000
50,000
52,000
58,000
55,000
55,000
125,000
55,000
125,000
150,000
63,000
240,000
52,000
60,000
52,000
60,000
50,000
52,000
58,000
54,500
55,500
125,000
55,000
125,000
150,000
63,000
240,000
p.c.m
"
"
"
Lumber
Hemlock 105mm sq., roof beam, std.
Hemlock 105mm sq., roof beam, KD
Hemlock 90mm sq., purlin, std.
Hemlock 90mm sq., purlin, KD
Hemlock 45x105mm, KD, floor joist, 4m
Hemlock 105mm sq., preserved sill, 4m
Douglas Fir 90mm sq., purlin, KD
Douglas Fir 45x45mm, KD, rafter, 4m
Douglas Fir 45x105mm, solid, KD, floor joist, 4m
Douglas Fir 120mm sq., laminated, 6m
Douglas Fir hirakaku, KD, 3, 4m
Douglas Fir hirakaku, laminated, 3, 4m
Yellow Cedar 5" x 6W BC Clear
*Yellow Cedar 120mm, sill (pithless), 4m
Spruce 8"3/4, board, Clear
European
Whitewood 105mm sq., 5-ply kudabashira, home-sawn
Whitewood 105mm sq., 5-ply kudabashira, imported
Whitewood 27x105mm, solid, 3m, Central
Whitewood 27x105mm, solid, 3m, Nordic
Whitewood 30x105mm, solid, 3m, Central
Whitewood 30x105mm, solid, 3m, Nordic
Whitewood rough lamina, randam length, Central
Whitewood rough lamina, randam length, Nordic
Redwood hirakaku, laminated, 3~6m
Dimension Lumber
SPF 2x4~8", KD 10~20' J-grade
SPF 2x10", KD 10~20' J-grade
Whitewood 2x4~8", KD 10~16' J-grade
Whitewood 2x10", KD 10~16' J-grade
Japanese
"
"
"
"
"
"
"
"
"
"
"
"
"
"
1,920
1,900
48,000
48,000
48,000
48,000
44,000
45,000
62,000
1,830
1,830
50,000
50,000
50,000
50,000
38,000
39,000
58,000
1,830
1,830
50,000
50,000
50,000
50,000
38,000
39,000
57,000
per piece
"
p.c.m
"
"
"
"
"
"
(Yen; wholesale prices, on truck; green count)
41,000
46,000
43,500
48,500
42,000
48,000
45,500
50,500
41,500
47,500
45,500
50,500
p.c.m
"
"
"
Logs
Japanese Cedar (Akita) 3.65-4m, 14-22cm dia.
Japanese Cedar (Fukushima) 3.65-4m, 14-22cm dia.
Japanese Cypress (Gifu) 3.65-4m, 14-22cm dia.
11,500
10,900
19,300
11,100
9,900
16,400
10,400
10,400
15,800
p.c.m
"
"
*Since May 2015, lumber has been switched to another with different grade type, which has a large trading volume.
Page 7
Japanese Market Indications
Japanese
2014
July
2015
Jun
July
Lumber
Japanese Cedar post 10.5cm sq., 3m
Japanese Cedar post 10.5cm sq., 3m KD
Japanese Cedar roof beam 10.5cm sq., 3.65-4m
Japanese Cypress post 10.5cm sq., 3m
Japanese Cypress post 10.5cm sq., 3m, KD
Japanese Cedar kowari lumber (Akita)
Japanese Cedar 2.7 x 10.5cm, KD (Kyushu)
Russian
59,000
70,200
54,900
82,700
95,100
240
57,000
58,300
64,900
52,700
78,400
84,100
240
54,000
58,200
64,900
52,600
78,100
83,400
240
54,000
p.c.m
"
"
"
"
per piece
p.c.m
Logs
*Whitewood mid-dia., short-length in Toyama market
*Larch mid-dia., short-length in Toyama market
*Red Pine mid-dia., short-length in Toyama market
6,800
6,800
7,200
6,000
5,500
6,800
6,000
5,500
6,800
per koku
53,000
67,000
54,000
50,000
63,000
51,000
50,000
63,000
51,000
p.c.m
"
"
Lumber
Whitewood rafter in Chukyo market, Green
Whitewood rafter in Chukyo market, KD
Whitewood rail in Chukyo market
Radiata Pine
"
"
Logs
New Zealand, A-sort
5,100
5,000
5,000
per koku
38,000
41,000
41,000
p.c.m
Lumber
board, Chile
12.0mm x 4m, random width (120,150, 180, 210mm)
Southsea
Logs for plywood
Meranti (Hill SRWK) ordinary lot
Meranti (Hill SRWK) small lot
Kapur (SRWK)
Plywood
Type II 2.3mm x 910 x 1820, F4-star
Concrete form (CF) Type I 12.0mm x 900 x 1800
Imported CF JAS 12.0mm x 900 x 1800
Imported structural PW JAS 12.0mm x 910 x 1820, F4-star
Structural Softwood PW 12.0mm x 910 x 1820, F4-star
Structural Softwood PW 24.0mm x 910 x 1820, F4-star
OSB
JAS 9.5mm x 910 x 2440
JAS 12.0mm x 910 x 1820
10,300
9,130
13,000
13,400
12,000
15,500
12,930
10,800
14,500
"
"
530
720
850
1,320
1,320
1,350
1,070
2,550
560
730
860
1,320
1,450
1,470
800
2,100
560
730
860
1,380
1,480
1,480
850
2,100
per sheet
"
"
"
"
"
"
"
890
890
920
860
*The prices have been revised since July 2014 due to a change of the company offering prices and
the quality of logs.
per koku
920
830
per sheet
"
Page 8
ing double digits increase. This is because those of condominiums showed
a significant increase of 54.9% to
11,322 units. For single-family houses, housing starts were down 8.8% to
9,148 units, decreasing for 13 months
in a row.
By construction method, housing
starts of prefabricated houses rose
7.7% to 11,490 units, increasing for
three consecutive months, and those
of two-by-four houses were up 1.2%
to 8,281units, increasing for four
months in a row. This shows the recovery trend. By structure, housing
starts of wooden houses were up 3.2
% to 38,151 units and non-wooden
houses grew 9% to 33,569 units. The
ratio of wooden houses by the number of units was 53.2%, decreasing
0.8 points from the previous month.
By region, housing starts increased in
all areas - up 9.5% in Tokyo metropolitan area, up 5.5% in Chubu area,
up 3.2 % in Kinki area, and up 3.7%
in other areas.
:Statistics:
Plywood supply in May
Compiled by the Japan Plywood
Manufacturers’ Association from
the Trade Statistics of the Ministry
of Finance, the amount of imported
plywood in May was 216,000 m³
(29.9% decrease compared to the
same month last year) decreasing
largely for the 3 rd consecutive
month. Reinforcing its regulations
against illegal logging, Malaysia,
the country with the largest exports,
had a decline in plywood production
as well as a decrease in exports
reflecting a shortage of its domestic
logs. The amount of imports in
Japan in May was 88,000 m³ (33.8%
decrease) hitting its recent low level
since the 75,000 m³ in October
2011 after the Great East Japan
Earthquake disaster. The amount
from Indonesia decreased for the
8th consecutive month to 62,000 m³
(28.7% decrease), and the amount
from China also decreased for the
3rd consecutive month to 52,000 m³
(26.7% decrease). With a decline in
inventory levels due to a decrease
in the amount received, the market
is showing a growing sign of a
recovery.
According to Plywood Statistics
compiled by the Ministry of
Agriculture, Forestry and Fisheries,
the amount of production (domestic
supply) of regular plywood in May
stalled at 219,000 m³ (7.8% decrease)
following a decrease in production
due to the dullness in the market, but
because the amount of shipments fell
below the amount of production to
213,000 m³ (11% increase), inventory
at the end of the month increased
by about 6,700 m³ compared to
the previous month to 308,000 m³
(52.6% increase). Within the amount
of regular plywood, the amount of
production of softwood plywood
was 206,000 m³ (7.3% decrease), the
amount of shipments was 201,000
m³ (12.4% increase), and the amount
of inventory at the end of the month
slightly increased compared to the
Canadian SPF Dimension Lumber
The import prices of Canadian SPF dimension lumber in early July were $490/mfbm for 2x4, 2x6 and 2x8 items and
$580/mfbm for 2x10 with both prices down by10 dollars from the previous month. Prices that had been declining
by 10 dollars every month since the beginning of this year (January) finally stopped declining in June, but declined
again in July.
This year, the weather in British Columbia is very dry, and mountain fire has already occurred. There is a concern
that more mountain fire may occur toward the summer. People in the market are concerned that the ban on the
access to mountain areas (logging cannot be done) may cause the log shortage. While the log supply is expected to
decline toward the summer, prices of dimension lumber for Japan are expected to be unchanged.
In the domestic market, there is a talk that work started being generated in June. However, only major companies
are busy, and there is no feeling that there is work for local builders. It was announced that housing starts for 2x4
housing in May were 8,281 units and continued to increase from the previous year for 4 consecutive months. The
2x4 construction is steadily on the rise among non-residential buildings including care facilities in addition to
detached housing, apartment buildings and housing with rentals. However, processing factories are forced to take
a resolute posture as it is difficult to make profits due to severe conditions when they receive work from major
companies.
Page 9
previous month to
266,000 m³ (67.7%
increase). With the
continuing sluggish
mood, plywood
manufacturers,
which are becoming
tired, announced
that the reduction
in production will
be stepped up in
the second half of
June, and the market
suddenly became
firm.
Amount of Imported Plywood by Countries
Overall Amount of Imported Plywood
Indonesia
China
Malaysia
y/y
y/y
2015
263,447 -21.4
APR
216,383 -29.9
MAY
JUN
YTD 1,275,100 -19.6
y/y
m3； %
New Zealand
y/y
y/y
101,181 -31.5
88,332 -33.8
87,327 -3.2
62,253 -28.7
58,366
52,093
-21.2
-26.7
4,169 -24.5
1,781 -26.1
1,136 -25.1
838 -48.4
546,293 -20.2
371,984 -17.8
283,611
-18.6
11,102 -52.0
5,691 -27.6
Supply and Demand of Softwood Plywood
Domestic Production
3mm & below
y/y
2015
APR 216,787
MAY 205,723
JUN
YTD 1,068,576
3-6mm
y/y
Shipment
6-12mm
y/y
y/y
-8.3
-
-
2,043
10.6
26,790
-7.7
187,954
-8.5
-7.3
-
-
1,581
-9.7
24,861
2.5
179,281
-8.4
-4.4
-
-
10,628
17.3
137,318
3.9
920,630
-5.8
Domestic Production
3mm & below
3-6mm
6-12mm
Shipment
y/y
y/y
-3.7
201,218 12.4
260,947 127.1
266,208 67.7
210,135
1,020,741
-5.6
y/y
y/y
-8.1
-7.8
1,324 -13.7
1,195 -11.1
6,495 -0.7
5,529 -13.2
28,881
26,889
-8.8
0.0
195,520
185,856
-8.1
-8.7
-4.7
6,287 -11.2
-8.5
148,037
2.3
955,489
-5.5
31,004
Inventory
y/y
y/y
y/y
-
-
m3； %
Imports
Total Supply
in Japan
12mm & over
y/y
m3； %
Inventory
12mm & over
y/y
Supply and Demand of Regular Plywood
2015
232,220
APR
MAY 219,469
JUN
YTD 1,140,817
Taiwan
y/y
y/y
y/y
y/y
222,966 -4.2 301,105 92.9
213,010 11.0 307,802 52.6
263,447 -21.4
216,383 -29.9
495,667 -15.7
435,852 -20.3
1,275,100 -19.6
2,415,917 -13.2
1,091,679
-5.6
-
-
Plywood Market 2nd Week July
As major plywood manufacturers who disliked the bearish market conditions announced further production cut and
price increase in mid-June, users and distributors seem to have placed orders for the domestic softwood plywood
with manufacturers. While new product prices were introduced in July, the production volume is being reduced with
mainly 12 mm items due to an impact of the production cut.
With the production being cut, the next focus will be if and when the demand will increase. The operation rate
started increasing at some of the precut factories in mid-June, and some are saying that the situation started
changing. However, there is no sign of recovery in the work volume for general builders including local builders,
and some point out the fundamental problem, saying that the sluggish demand for detached houses is due to changes
in demand structure. As for softwood plywood, strenuous efforts have been made in order to increase the use of
softwood plywood for the concrete form as a replacement for the lauan plywood.
The movement of the imported plywood is not good. However, as the arrival declined significantly - down by 30%
from the previous year, the port inventory at the Greater Tokyo Metropolitan area which was excessive at once time
has started being adjusted. As the import firms hoped disliking the idea of selling below cost and avoiding the sales
which would generate the deficit balance, the market started growing firmer.
With several reasons taken into consideration, the high prices of the imported plywood in local area and the weak
yen trend are expected to continue, and the future arrival cost is highly likely to increase further.
Page 10
News in Brief
Association for the Promotion of Wooden Housing as Number One, a
general incorporated association, held its 2nd annual general meeting on
May 26 at Furai Hall in Shinsen Furai Building in Shibuya, Tokyo. A lecture
titled “Unexpectedly Unknown ‘Wood and Water’” was also given by Professor
Emeritus Takanori Arima of the University of Tokyo. The association, which
began in April of last year, has the purpose of “vertically integrating businesses
ranging from the lumber industry to housing and construction suppliers that are
involved in “houses of wood” and conducting activities that promote the spread
of wood constructed housing and wood construction and improve maintenance,
management, and resale value.” Kouzou Futagi, president and CEO of R.C. Core Co., Ltd., is presiding as the first
chairman of the association, and the association is currently conducting activities with 62 member (class 1 and class
2) companies and 19 supporting member companies. In his greetings speech, Chairman Futagi said, “Because the use
of wood is also a national policy, we really have to put effort into our work. This year, we will step on the accelerator
in order to move ahead with our activities so that consumers will choose ‘houses of wood.’” Also at the meeting,
Ikuo Takusari, the President and CEO of NCN Co., Ltd., was selected and confirmed as a special director in charge of
vitalizing the association.
The Japan Wood Protection Association, a public interest incorporated association, held its 4th general meeting on
May 26 at Mielparque Tokyo. At the start in his greetings speech, Yuji Imamura, the chairman of the association, said,
“An agricultural department was newly established at a university in Kyoto in April, and I was amazed. Even among
the people involved in the construction, the people, who know about lumber in detail, are increasing,” expressing an
awareness of the actual spreading of the movement to expand the use of lumber. Discussion and approval of proposals
took place without any problems, and following the completion of his term, Yuji Imamura was reappointed as chairman
at the selection of directors and executive officers. With the purpose of contributing to the improvement of the lives of the
citizens and to the conservation of the global environment, the association is implementing projects that carry out survey
research related to wood preservation, projects that lead and develop the spread of wood preservation, and projects that
promote appropriate wood preservation processing. With the spread of excellent, long-term, wood-constructed housing,
the use of lumber in public buildings, and the use of new wood products such as CLT in recent years, the association’s
role to disperse information concerning the durability of wood is gradually increasing in importance. Over 150 people,
the highest number ever, attended the reception after the meeting, and the party was in high spirits welcoming guests
from the Ministry of Economy, Trade and Industry, Ministry of Land, Infrastructure, Transport and Tourism, and Forestry
Agency.
The Japan Fiberboard and Particleboard Manufacturers Association held its 59th general meeting, and Ryoji
Sawaki was re-elected as the chairman at the election of officers. Because wood biomass electric power plants have
been increasing especially after the implementation of the Feed-in Tariff program for renewable energy, Chairman
Sawaki is closely exchanging information with other groups such as the Japan Paper Association and Japan Woodchip
Manufacture’s Association and keeping a close watch on the price, supply and demand, and other factors of woodchips.
Among the projects for this fiscal year, the association will work on the addition of a list of particle boards for structural
use and on the addition of a notification of specifications for medium density fiberboards (MDF) for structural use as part
of the project to promote housing market development titled “Investigation Concerning the Addition of Specifications
for Wall Magnification [value for wall strength] in Wooden Buildings” of the Ministry of Land, Infrastructure, Transport
and Tourism. The total supply (total of domestic production and imports) of wooden boards in fiscal 2014 was 3.02
million m³ decreasing 0.3% compared to the previous year. Adding wooden boards and plywood together, the total
supply of wooden panels was 9.32 million m³ decreasing 1.8%, and as a result, the percentage of wooden boards among
wooden panels was 32.4% exceeding 30% for the 8th consecutive year. The breakdown of the production (actual area) of
wooden boards showed 15,979,000 m² of hard boards (3.7% decrease compared to the previous year), 55,490,000 m² of
MDF (3.8% decrease), 42,661,000 m² of insulation boards (6.1% increase), and 70,443,000 m² of particle boards (4.2%
increase) for a total of 184,573,000 m².
Page 11
The Japan Woodchip Manufacture’s Association held its 59th general meeting on May 25 at the Rinyu Building
in Bunkyo, Tokyo. Ryuji Sago, the chairman of the association, said, “Concerning woodchips, the stagnation has been
continuing because of the decline in paper demand in the paper manufacturing industry, which is the main ‘demand
destination,’ and the increase of imported products, but in 2013, the amount of production showed a growth of over
10% from the 5,870,000 tons in the previous year to 6,450,000 tons. However, with a decrease in scrapped wood chips,
production once again shrank to 5,840,000 tons in 2014. Due to the implementation of the Feed-in Tariff program in
fiscal 2012, new demand for woodchips was expected to be over 4,000,000 tons annually from the capacity of newly
constructed wood biomass power plants. For expansion in demand, how far domestic wood can respond in the future will
be an issue.” With a tightness on logs used for biomass fuel, the lumber industry was in a trend of high log prices and
low product prices, so the severity of a company’s business is increasing. The currency exchange rate shifted to a falling
yen, and an increase in demand is expected from biomass power plants using domestic woodchips, so a stable business
development that looks squarely ahead with a long-term view is necessary. The business plan for fiscal 2015 will put
effort into the following areas: 1) promotion of reconstruction from the Great East Japan Earthquake disaster, 2) stability
in price and supply and demand of woodchips, 3) making standards for woodchips, 4) development of new demand, 5)
smooth promotion of distribution of legal lumber and wood material gathered from forest thinnings, and 6) promotion of
a certification system for businesses such as a qualification certification for wood biomass supplying companies.
The general meeting for the establishment of the Japan Woody Bioenergy Association was held on May 26 at
Mokuzai Kaikan in Tokyo. With the break up of the Wood Biomass Energy Use Promotion Council, which had been
conducting activities up to now, the new association was established after conducting procedures to become a general
incorporated association. The following items were raised in the business plan for this fiscal year: 1) implementation of
survey research projects (survey research related to wood biomass power generation systems, case studies in countries
abroad, and supply methods, proposals from the fixed price calculation committee, and requests from related institutions),
2) establishment of a committee for the utilization of wood biomass (held once a month) to investigate or carry out
the following items: 1. survey on the actual conditions of wood biomass electric power generation, 2. investigation
into thermoelectric power supply system by wood biomass, 3. survey trends concerning small-scale biomass power
generation technology, 4. survey on the actual conditions of wood pellet production, distribution, and consumption, 5.
survey on the current conditions of verification guidelines, 6. survey on the supply method for wood biomass, and 7.
meetings for study groups and exchanging information (twice annually), and 3) as part of “General projects to create
new lumber demand for fiscal 2015,” for which the government is collecting applications, implementation of projects to
construct a support system to use wood biomass (within 77.0 million yen) and projects to support the development of a
system to process and use wood biomass (within 11.0 million yen). In the future, the association will take a central role
in expanding biomass energy.
The Japan LVL Association held its general meeting for fiscal 2015 on May 27 in Tokyo. At the start of the
meeting in his greetings, Ichiro Matsuda, the chairman of the association, said, “Cases of large-scale, wood constructed
buildings have been increasing, and with the further advancement in the development of high quality LVL, I’d like to
promote the possibilities of wood construction to building designers. For this purpose, I’ll put effort into strengthening
the organization of this association and secure the finances. I will work so that companies and groups involved in LVL
production and distribution join this association. I’d also like to work so that LVL is largely used in facilities for the
Tokyo Olympics.” At the meeting, the current number of members was reported as 13 companies as full members
and 19 companies as supporting members. The business plan for fiscal 2015 will continue to implement and complete
projects from last year such as survey research, will put effort into developing technology that can be put into the
field of architecture and construction, will hold meetings centering on technology in order to develop new needs, and
will collect basic data related to fire-proofing connecting parts. According to “The Current state of laminated veneer
lumber” compiled by the association, the results showed the amount of logs used by 8 manufacturing factories in 2014
to be 265,711 m³, LVL supply to be 145,378 m³, imported LVL to be 74,500 m³, the supply of LVL for structural use to
be 72,980 m³, within that amount, imports to be 42,000 m³, and domestic production to be 30,980 m³. Looking at the
amount of supply based on type of use, structural use had a composition percentage of 50.2%, and within furnishings,
use for furniture was 2.87%, and use for fittings was 27.22%. Other uses included packaging, studs for condominiums,
and fixtures for the interior of buildings.
Page 12
The Wooden Home Builders Association of Japan (Mokujukyo) held its regular general meeting for fiscal 2015 in
Tokyo on May 28. Chairman Yano gave a speech at the start of the meeting, stating as follows: “The consumption tax is
to be raised from 8% to 10% in April 2017. Although the government takes measures as tax cut on mortgage and housing
grant for those consumers who want to acquire their home as a dream, we would like to ask for permanent measures such
as introduction of a reduced tax rate on housing, in order not to have another needless shrinkage in demand in reaction
to hurried purchases by consumers.” Currently the number of the members of Mokujukyo is 574 companies, increasing
13 from last year to the largest in its history. Mokujukyo celebrates this fiscal year as its 30th anniversary, and heralds its
important projects for the year as follows: To assist the promotion of the Energy-Saving Housing Point System; To further spread and improve “The Mokujukyo Remodeling Support System” and to train “Mokujukyo Diagnostic Stuff for
Remodeling” in order to promote evolution of high-quality housing stocks, as well as to accelerate the distribution of existing homes; To make efforts to spread the promotional projects of remodeling houses for long-lasting ones with better
quality; To work hard on acquiring new certification by the minister and additional approval to two-hour fire resistance
and others in order to propagate fire-resistant wooden buildings and ministerial ordinance to semi-fire-resistant structures.
Comprised of groups and associations in forestry and the forest industry, the 2020 Office to Promote the Expansion
of Lumber Use was recently established, and “requests concerning the promotion of domestic lumber use in the
2020 Tokyo Olympic and Paralympic Games” were carried out by Toshiaki Endo, chairman of the Research
Commission for the Establishment of a Sports Oriented Nation of the Liberal Democratic Party, and others. The
promotion office promotes the use of domestic lumber in international sports events such as the 2020 Tokyo Olympics,
and with this opportunity, it will further expand the use of lumber beginning in urban areas. It was also established with
the purpose of conducting proposed activities with groups and associations working in cooperation in order to manage
properly and conserve forests through the use of lumber. The current requests included a change to domestic wood
construction for all the Tokyo Olympic facilities such as the new National Stadium, Ariake Arena, temporary competition
venues, and the athlete village and a change to wood for the interior and exterior. In addition, a large use of domestic
wood was requested in the procurement of furniture and fixtures, building materials, construction of the cityscape in the
vicinity of the completion venues and athlete village, and construction of outdoor structures. Furthermore, the lumber
that is used for temporary structures was requested to be reused in public buildings nationwide after the games finish so
that citizens can jointly and widely own and enjoy it as an “Olympic legacy.”
The Japan DIY Industry Association held its general meeting for fiscal 2015 on June 3 in Tokyo. Over 420 people
from mainly member companies, guests, and the news media attended, and business and financial reports for fiscal 2014
were made; election proposals of executive officers were approved; the business plan and budget for fiscal 2015 were
reported. Concerning the election of officers, Toshiyuki Inaba (ECN Co., Ltd.) was newly elected as the chairman, and
Takeo Endo (Encho Co., Ltd.), Yoetsu Kan (Kanbun Co., Ltd), Tetsushi Sato (UFO Co., Ltd.), Yasuhiro Nagashima
(Kakudai MFG. Co., Ltd.), and Hiroki Suzuki (Wakisangyo Co., Ltd.) were elected as vice-chairman, and it was decided
that from now on they will carry the reigns of the association for two years. In his greetings speech, Toshiyuki Inaba,
the new chairman, said, “I have participated in the
JAPAN DIY HOMECENTER SHOW ever since
the 1st show held in 1978 to the 50th memorial show
held last year. Just like the number of small booths
at the DIY show has been smoothly increasing, the
DIY home improvement industry is still a growing
industry. With the top of the leading retail industry set
in position as vice-chairmen, I will work as chairman
under the support of the member companies.”
JLJ Website Address
www.jlj.gr.jp
Subscription rates (including postage):
One year, Japan ¥38,880; Overseas US$400.00
Publisher: JLJ Inc. Office: 25 Sankyo Bldg. #523, 1-48-10 Higashi-Ikebukuro, Toshima-ku, Tokyo 170-0013 JAPAN
Phone: +81-3-5950-2251 Fax: +81-3-5950-2271 Email [email protected] Website http://www.jlj.gr.jp/

Volume 56 Number 13 (July 15, 2015)

Transcription

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