Export mkt price boost for plywood producers

Related Topics: | Wood Industry | News Flash |

Export market price boost for plywood producers

Extract from the Star Publication, 4^th Oct, 1999

Tropical plywood prices have surged by about 50% from 1998’s low in the China and Japan markets, bringing much cheer to Malaysian producers. Prices of the thin panel plywood (3.0mm based) exported to China have rebounded to around US$350 (RM1,330) per m³ (free on board) from US$210 (RM798) in mid-1998. The thick panels (6mm, 9mm and above) are currently priced between US$255 and US$270 per m³, up from a low of US$160.

Similarly, the prices of concrete panel sold to Japan have sprung to US$350 per m³ from US$240 – which was way below production cost then – from over a year ago, according to Sarawak Timber Association (STA) panel products committee chairman Stephen Lau Lee Kiong.

He said there were some price adjustments in the Japanese market as the country had imported “too much” plywood in 1998. “The demand for panel products from Japan should increase towards the end of this year as the country is now building more new houses compared to 1998,” Lau said.

However, he does not foresee further firming of concrete panel prices in the short tem in the Japanese market. During the pre-economic crisis period in the first half of 1997, prices went up to as high as US$470 (RM1,786) per m³.

On the China plywood market, Lau said prices were “quite confusing” due to a large volume of local production comprising a combination of imported veneer and local timber.

China’s annual plywood demand is around 10 million of which 7 million m³ is produced locally.

Lau said with the accelerated economic development, China is now increasing its demand for the thick panel products although it was earlier mainly importing the thin panels. Lau said the strengthening yen had resulted in higher purchasing power for Japanese timber importers, which had benefited Malaysian products.

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