Data for Japan’s North America timber, as well as dimension lumber, imports for the rst six months of 2016 have been released this week.
North American Timber and Log Market in Japan
Export prices of Douglas fir logs in Japan for August shipment settled at the same level as in July, said the Japan Lumber Reports Friday. Log production on the supply side was also steady.
Ocean freight charges have been climbing so C&F prices were up but a strong Yen offsets the cost increase.
Canadian Douglas Fir Logs
Canadian Douglas fir log prices for August were unchanged at ¥109 per cubic metre, said the Reports. Japan’s plywood mills have been running at full capacity but the use of Doug fir logs is limited so supply and demand are balanced.
The lumber market in Japan has been in a slump, said the Reports, so there has been a buyers’ market for logs.
North American Lumber to Japan
The lumber market in Japan for both domestic and import has been weak due to the recent appreciation of the Yen, and a bearish mood that is prevailing.
” Japan Lumber Reports
North American lumber export prices climbed since 2Q but the landed Yen costs has been dropping due to the strong Yen so there is no bottom feeding, said the Reports.
For domestic lumber, log prices dropped since last May so many players anticipated price reduction announcements by major Douglas fir sawmills.
Based on the rule that market prices would drop if imported costs drop, the present rate is getting to the ceiling so since late July inquiries have been looking for a price bottom.
J Grade Lumber Prices in Japan
The price of SPF J grade lumber in 3Q are up US$10- $15 mfbm, and spot purchase prices are up by US$5, according to the Reports.
For Canadian suppliers these J grade prices are not attractive, since domestic prices of #2&Btr shot up to US$330 in the second week of August, US$52 higher than the same time last year.
Japan’s total import of 2×4 lumber for the first six months of 2016 was 605,920 cubic metres, a -7.1 per cent drop from the same time one year ago.