Japanese Importation of Logs, Lumber, Plywood to Rise in Wake of Earthquake
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The earthquake and tsunami that hit Japan on March 11 took more than 10,000 lives, and in the immediate aftermath, more than 400,000 people lost their homes and 100,000 - 150,000 buildings were destroyed. The re-building of towns, roads, railways, and the power grid in the impacted region northeast of Tokyo will be a lengthy and difficult undertaking. Much is still uncertain regarding short-term and long-term changes in the importation of forest products as a result of the catastrophe, but the need for construction material is going to be considerable in the coming years, according to a news brief this week by Wood Resources International (WRI), Seattle, Wash., USA.
Initially, there have been requests from Japanese authorities and trading houses for pre-fabricated houses. There have also been inquiries for glue-laminated products and other pre-cut wood products that more quickly can be used for re-building efforts, as opposed to the need for basic commodities such as lumber and plywood, WRI notes. To start with, the government has asked for 30,000 temporary houses within two months.
Japan is one of the largest importers of wood products in the world. In 2010, the country imported wood raw-material (logs and chips) and processed wood products valued at more than $10 billion dollars, which was 20% more than in 2009, as reported by WRI. Japan was the biggest importer of wood chips and plywood, the second largest importer of logs, and was ranked the third biggest importer of lumber in the world last year.
It is not likely that imports of lumber, plywood, and sawlogs will increase much in the next few months before ports and access roads have been cleared and the power has been restored for at least the most basic needs. But during the next 6 - 12 months, it can be expected that there will be a rise in demand for both lumber and plywood. This will result in increased importation of processed products and of logs to supply domestic Japanese mills.
Based on contacts already established between importers in Japan and manufacturers around the world, it is probable that there will higher shipments of softwood lumber from Canada, the U.S., Russia, Sweden, and Finland later this year. The major suppliers of plywood will most likely continue to be Malaysia, Indonesia, and China, according to WRI.
Japan imported 3.6 and 4.1 million m3 of softwood logs in 2009 and 2010, respectively. As the domestic forest industry increases production later in 2011, imports of logs predominantly from the U.S., Canada, New Zealand, and Russia can be expected to increase to their highest levels in at least three years.
More information about WRI is available online.
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