KUCHING: Plywood manufacturers and exporters in Malaysia and Indonesia are expected to significantly raise the selling prices of their products due to the strong exchange rates of ringgit and rupiah to the US dollar in October 2024.
In predicting this, Japan Lumber Reports (JLR) said the strong ringgit and rupiah meant that plywood manufacturers in Malaysia and Indonesia have less profits selling their products. Malaysia and Indonesia are traditionally the biggest suppliers of plywood to Japan.
“The price of 12mm painted plywood for concrete form from Malaysia was US$20, C&F per cubic metre (cu m) high in August and September 2024.
“Some thin plywood made of natural wood from Indonesia was US$50, C&F per cu m high, and medium thickness plywood is US$20, C&F per cu m high,” said JLR, a trade journal published every two weeks. The JLR publications are reproduced in International Tropical Timber Organisation (ITTO) Tropical Timber Market Report.
The 12mm 3×6 painted plywood for concrete form is US$600-620, C&F per cu m; plywood form is US$510-530, C&F per cu m, and structural plywood is US$520-540 per cu m. Their prices are, however, stable.
“Inquiries to domestic plywood for pre-cutting recovered in September and October 2024, and shipment was increasing.
Workdays in October are more than September, so the actual demand increased.
“Movement of domestic plywood recovers but the price of domestic softwood plywood is in a bearish tone and has not bottomed out.
Prices for 12mm 3×6 domestic structural softwood plywood decreased to 1,030-1,050 yen, delivered per sheet in the middle of October 2024 in the Tokyo metropolitan area. The price in some local areas was 1,000 yen, delivered per sheet.
“One of the reasons for the decrease is that there had been competition between pre-cutting plants to get orders. Also, there were battles over market share of plywood between plywood manufacturers due to the less new starts (of housing),” said JLR.
On palm kernel shells (PKS), which is imported fuel and consumed at woody biomass power plants in Japan, the report said the price increased slightly in South Asia.
“The spot price of Indonesian certified PKS in August 2024 was US$80, FOB (free on board) per ton. However, the spot price increased to US$85-90, FOB per ton in September and increased (further) to US$90-95, FOB per ton in October 2024.
Some South Asian shippers offered US$100, FOB per ton.
“The spot price of Vietnamese wooden pellet is US$128-130, FOB per ton in Vietnam and this is US$3-5 more than the previous month.
“The reason for the price hike is that production of PKS decreased because heavy rain occurred in Indonesia and Malaysia.
It was the best time for harvesting palm trees. Palm oil plants and South Asian shippers raised the spot price. The future price of PKS is US$120-128, FOB per ton in South Asia.”
Added JLR: “The inventory of imported fuels, such as PKS or wooden pellets, in Japan was once over-stocking but the inventory is proper volume (now). There are inquiries for imported fuels to trading companies.”
The report said as a large wood biomass power plant in Japan was damaged by a recent fire, its operation was halted, so demand for imported fuels had not fully recovered yet. Also there were failures at other wood biomass plants, which had affected their operations.
Due to the typhoon in September which affected production, the spot price of Vietnamese wooden pellet is rising. Demand for wooden pellets in Europe has increased, driving up the prices.
