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Country's plywood export prices to key Japan market have firmed up

Malaysian plywood undergoes quality tests before being exported.
KUCHING: Malaysia’s plywood export prices to key Japan market have firmed up due to tight supply of logs for manufacturing activities and shortage of containers to ship the product.
Sarawak-based Shin Yang Group, Malaysia’s largest plywood supplier, has raised its export prices twice, once in December 2020 and another last month, according to the Japan Lumber Reports (JLR).
However, there was no mention as to how much were the increases in Shin Yang’s export prices.
Japan significantly raised its plywood imports from Malaysia to 62,400 cubic meters (cu m) in October 2020, up 20,200 cu m or 47.5% from the previous month, data from Japan Finance Ministry. ....

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SEEKING A SUSTAINABLE PATH FORWARD

Industry players need to seek alternate raw material sources.
THE issue of raw material shortage is a major trouble facing the timber industry, but industry players are working hand-in-hand with the government to address the situation - a vital step forward, as plywood products were the second largest contributor (RM3.4bil) to Malaysia’s RM22.5bil wood-based products export in 2019.
Describing the acute shortage of raw materials in Peninsular Malaysia, as well as lower rubberwood supply due to increased latex production, the Malaysian Panel-Products Manufacturers’ Association (MPMA) chairman Datuk Wira Sheikh Othman Rahman said that plywood and panel manufacturers are facing stiff competition from sawmillers in securing a sufficient supply. ....

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SUPPORTING THE GROWTH OF TIMBER

Chua said ocean freight for certain destinations have spiked by 300% to more than 500%.
WHILE government policies and laws are key towards facilitating a healthy industry, the role of industry associations are also undeniably important in helping to ensure that regulatory measures support the growth of the industry as well.
For the Timber Exporter’s Association of Malaysia (TEAM), which was established in 1955 with approximately 680 members, it aims to distill the feedback of industry players into a single, concerted voice to liaise with the government on policy and regulatory issues related to timber.
According to its president Chua Song Fong, apart from furniture, most of the other sectors within the timber industry have seen a drop in business since the pandemic’s outbreak. ....

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Did You Know? Understanding the Malaysian Timber Council's role

The Malaysian Timber Council (MTC) was formed through the initiative of the timber industry in 1992 as a company limited by guarantee. ....

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