The JLR is saying that the continuing weak demand and uncertain economic outlook is making it extremely difficult for traders to move either imported or locally manufactured plywood. Sales in October were particularly weak, says the JLR, because housing starts remain low and the prospects for the final month of the year are not good. Imported plywood inventories are said to be low with traders having cut back on imports mainly because exporters are asking higher prices which is out of the question at the moment given the weak market conditions in Japan.

Wood promotion
The Japanese Ministry of Agriculture Forestry and Fisheries has reportedly established a wood utilisation promotion team. The objective is to contribute to green house gas emission reduction efforts. Part of the work of the team will entail investigating how best to utilise forest plantation thinnings which are currently left unused in the plantations. The work will also involve considering promotion of wood use and investment in processing facilities.

Rain season log shortages
The rain season has started early in Borneo and reports are saying that, even though logging conditions are not that bad, inventories at the port are lower than normal at this time of the year. The main problem is that it now takes longer to get the logs down river from the logging areas. Shipping delays have been reported, says the JLR, at Tanjung Mani, Miri port at Kuala Balam and Bintulu.

Eco-plywood
In its end November issue the Japan Lumber Reports (JLR) says that Sumitomo Forestry will start marketing Indonesian made plywood manufactured from certified raw material and/or with plantation timbers. This is said to be part of Sumiomo’s effort to extend its contribution to environmental sustainability. Some revenues will be reinvested to rehabilitate areas damaged by fires and indigenous species will be used.