Volume 56 Number 13 (July 15, 2015)
Transcription
Volume 56 Number 13 (July 15, 2015)
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 Wednesday, July 15, 2015 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. (Continued on Page 3) The automated production line The drying facility has 42 drying machines Japan Lumber Journal Wednesday, July 15, 2015 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. (Continued on Page 4) 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 Japan Lumber Journal Wednesday, July 15, 2015 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 Japan Lumber Journal Wednesday, July 15, 2015 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 Japan Lumber Journal Wednesday, July 15, 2015 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 " " " " " " " " " " " " " " (Yen; wholesale prices, on truck) 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 " " " (Yen; wholesale prices, on truck) 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. Japan Lumber Journal Wednesday, July 15, 2015 Page 7 Japanese Market Indications Japanese 2014 July 2015 Jun July (Yen; wholesale prices, on truck) 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 (Yen; wholesale prices, on truck) 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 " " (Yen; wholesale prices, on truck) 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 (Yen; wholesale prices, on truck) 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 Type II 4.0mm x 910 x 1820, F4-star Type II 5.5mm 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 " " (Yen; wholesale prices, on truck) 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 " " " " " " " (Yen; wholesale prices, on truck) 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 " Japan Lumber Journal Wednesday, July 15, 2015 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 (Continued on Page 9) 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. Japan Lumber Journal Wednesday, July 15, 2015 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. Japan Lumber Journal Wednesday, July 15, 2015 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. (Continued on Page 11) Japan Lumber Journal Page 11 Wednesday, July 15, 2015 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. (Continued on Page 12) Japan Lumber Journal Wednesday, July 15, 2015 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 Japan Lumber Journal 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 editor@jlj.gr.jp Website http://www.jlj.gr.jp/