{"id":76629,"date":"2018-10-30T10:33:39","date_gmt":"2018-10-30T10:33:39","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/rising-prices-for-sarawak-logs\/"},"modified":"2025-09-19T08:49:16","modified_gmt":"2025-09-19T08:49:16","slug":"rising-prices-for-sarawak-logs","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/rising-prices-for-sarawak-logs\/","title":{"rendered":"Rising prices for Sarawak logs"},"content":{"rendered":"

Logs prices in Sarawak significantly increased due to higher demand from\u00a0neighbouring Sabah, which banned timber exports since May this year.<\/em><\/p>\n

Sarawak log prices have surged due to higher demand, thanks to neighbouring Sabah, which banned timber exports since May this year.<\/p>\n

Recently, Japan relied on Sabah logs.\u00a0Actually, over 10,000 cubic metres (cu m) of Sabah logs were imported in January, February and May, and the total of Sabah logs were 30% more than 2017. There have been no logs from Sabah since June, The Star reported.<\/p>\n

Thus, the Japanese timber market now relies of logs from Sarawak. Also, as an\u00a0alternative source of tropical timber,\u00a0Japanese buyers shifted to Papua New Guinea (PNG).<\/p>\n

\"Meranti regular log prices in Sarawak had been about US$300 per cu m FOB (free on board) but now the prices climbed to US$320 per cu m after Sabah logs became unavailable<\/em>,\u201d according to the Japanese Lumber Reports.<\/p>\n

Meranti is Sarawak\u2019s top export species,which accounted for 58,940 cu m out of the state\u2019s total log export of 2.24 million cu m last year.\u00a0The report said the Japanese plywood mills intend to continue buying mersawa species from PNG although the prices are higher than meranti.\u00a0Prices of mersawa from PNG shot up temporarily but levelled off after China (PNG\u2019s main log buyer) slowed down the purchase after general economy peaked off, as The Star reported.<\/p>\n

At the moment, the buyers in Japan keep buying lumber from South East Asian countries but the supply is unstable.<\/p>\n

According to JLR, imported volume of Sarawak logs is limited due to the state\u2019s harvest restrictions because of environmental reasons and increased duty.<\/p>\n

In July 2017, Sarawak raised the premium for hill timber to RM50 per cu m from 80sen in its first review after more than 30 years\u00a0The premium is chargeable on all species of logs harvested from hill forests and logs of hill species from agri-conversion areas.<\/p>\n

Sarawak has drastically cut log production in recent years in line with its sustainable forest management policy.\u00a0State Forest Department\u2019s figures revealed that last year\u2019s log output was 7.11 million cu m, down from 8.67 million cu m in 2016.\u00a0In the first eight months this year,production stood at 4.23 million cu m.<\/p>\n

As reported by The Star, last year, the state authorities further reduced log export quota to 20% from 30% to enable more logs to be reserved for the local downstream processing mills.\u00a0A tighter log supply situation due to reduced annual production from natural forest has kept Sarawak logs prices robust for several years.<\/p>\n

Tropical log prices in the international market were pushed up after Myanmar banned logs exports in 2014 to curb smuggling activities and conserve its forest.Myanmar was reported to be the world\u2019s fifth largest tropical log producer (5.59 million cu m in 2012) and exported some 42% of its total production.<\/p>\n

According to JLR, Japan importers purchased large volume of Sarawak logs when India slowed down the imports from Sarawak after that country\u2019s raised the goods and services tax (GST) in July last year.<\/p>\n

Ahead of the GST, India bought large volume of logs from Sarawak.\u00a0As the Japan\u2019s orders from Sarawak were delivered early this year,this pushed the country\u2019s imports of tropical logs by 31.1% to 80,657 cu m in the first six months as compared to the same period in 2017.<\/p>\n

Last month, Japan,Malaysia and Indonesia plywood manufacturers discussed raw material problem,trend of trade and related matters during a plywood conference in Tokyo.\u00a0Japan explained that majority of raw material of plywood is now domestic wood and 52% of plywood supply is domestic but 48% is imports,which is indispensable materials for such items,like floor base and concrete forming panel.<\/p>\n

\u201cDomestic manufacturers mainly produce structural panel but they are now trying to produce non-structural products,like floor base and concrete forming panel with softwood.\u00a0But the volume is limited and it is far from replacing imports<\/em>,\u201d added JLR.<\/p>\n

Japan is Sarawak\u2019s key plywood buyers.\u00a0Also, some 3,000 plywood mills in China were closed last year following the country\u2019s massive restructuring efforts to eliminate outdated and polluting wood processing mills.\u00a0Besides, 621 fibreboard production lines were dismantled, eliminating over 20 million cu m of production capacity.<\/p>\n

Also affected were over 900 particleboard production lines which were either closed or relocated, resulting in a reduction in installed production capacity of 17 million cu m.<\/p>","protected":false},"excerpt":{"rendered":"

Logs prices in Sarawak significantly increased due to higher demand from\u00a0neighbouring Sabah, which banned timber exports since May this year. Sarawak log prices have surged due to higher demand, thanks to neighbouring Sabah, which banned timber exports since May this … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":59525,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[3284,3292,3286,3531],"class_list":["post-76629","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-logs","tag-malaysia","tag-prices","tag-sarawak","topic-forestry","topic-industry-prices","topic-sawmilling","area-asia-middle-east"],"acf":[],"yoast_head":"\nRising prices for Sarawak logs - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/rising-prices-for-sarawak-logs\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Rising prices for Sarawak logs - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"Logs prices in Sarawak significantly increased due to higher demand from\u00a0neighbouring Sabah, which banned timber exports since May this year. 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