Export prices of Indonesian plywood continue to climb with no sign of slowing down. In particular, thin panel of 2.5mm prices shot up to about US$1,000 per cbm C&F, a record. Source: Timberbiz
Weather in Indonesia is much worse than Malaysia and with tightening control of illegal harvest, log production is plunging.
Log production seems to have dropped more than half of normal pace with no sign of recovery. Due to this log supply shortage, plywood mills’ deliveries are largely delayed.
Even regular suppliers are two to three months behind schedule and some have not delivered volumes contracted last summer.
Looking at price trends for Indonesian plywood, the bottom prices were in the summer of 2016, 4mm plywood prices were about US$600 per cbm C&F, these are about US$750, 25% up with 2.5mm panel prices US$720-750 in 2016, now over USUS$950 with some US$1,020.
In Japan, 2.5mm panel market prices were 350-390 yen per sheet in summer 2016, and are now about 500 yen, 4mm prices are 630-650 yen, 30-50 yen up from February.