Export prices of New Zealand radiate pine logs are soaring. Late May and early June shipment prices steeply increased by US$24-25 per cbm and with future increases certain Japanese mills are reeling. Source: Tropical Timber Market Report, Timberbiz
Sawmills cutting radiata pine logs in Matsunaga area in Hiroshima prefecture decided to increase the sales prices of radiata pine lumber by 10,000 yen per cbm since August.
Radiata pine log prices sharply jumped up since late last year by aggressive purchase by China.
February shipment log prices of Japan increased by US$23 per cbm FOB from January shipment, which is record high increase so the sawmills in Japan increased the sales prices of lumber by 5,000 yen per cbm since April and the market accepted.
However, log prices for China continue to advance to renew the highest prices. Now the prices are US$ 188-190 per cbm C&F and in late May, US$200 offer is made.
Prices of German spruce logs, which China buys in large volume, climbed to US$184 per cbm C&F. Affecting such bullish Chinese purchase, log prices for Japan for late May shipment are up by US$24-25 per cbm FOB.
Total increase since last spring is US$65.
Based on these prices, the increase in Japan would be as high as 10,000 yen per cbm. Late June shipment log prices would be up by US$15. Ocean freight is also escalating so it is hard to predict how high log cost would be.
Sawmills have no choice but to accept high prices without any inventory. Sawmills say that it is impossible to see how high log prices climb and price increase is only solution to minimize the loss. Cedar crating lumber prices are also up by 3,000 yen per cbm. Sawmills need to keep increasing lumber prices because cedar log prices also keep climbing.
