Playwood exports expected to decline 25% in 1998<\/p>\n
JAKARTA (JP): Indonesia's foreign exchange earnings from
\nplywood exports is expected to fall by 25 percent this year to
\nabout US$2.6 billion from $3.58 billion last year, the
\nAssociation of Indonesian Wood Panel Producers (Apkindo) said
\nSaturday.<\/p>\n
Apkindo chairman Abbas Adhar said yesterday the lower estimate
\nwas partly due to a 20 percent fall in export volume, caused by
\nsluggish demand and a reduction in production.<\/p>\n
\"If the market remains unfavorable throughout the year,
\nplywood exports are expected to stand at about $2 billion, a
\nrecord low since 1990,\" Abbas said.<\/p>\n
Last year, Indonesia exported 7.58 million cubic meters of
\nplywood worth $3.58 billion.<\/p>\n
He said the 25 percent fall was based on an assumption that
\nplywood prices in the world market would increase to $300 per
\ncubic meter in the third quarter of this year.<\/p>\n
He added that international prices of Indonesian plywood had
\nslightly increased last month to $270 per cubic meter from $260
\nper cubic meter in March.<\/p>\n
Many Indonesian plywood producers cut their production this
\nyear following sluggish demand and an increase in production
\ncosts. But Abbas said Apkindo would not revise its target to
\nexport eight million cubic meters this year.<\/p>\n
Indonesia is the world's biggest plywood producer, turning out
\n10 million cubic meters of plywood annually.<\/p>\n
He said some plywood importing countries had started buying
\nMalaysian plywood due to the declining volume of Indonesian
\nplywood in the past few months.<\/p>\n
But Abbas is optimistic that Malaysia, the world's second
\nbiggest plywood producer, will not replace Indonesia's position
\ndue to its higher prices.<\/p>\n
\"Malaysian plywood is more expensive because the price of
\ntheir logs are higher than our logs,\" Abbas said, adding that
\nMalaysian logs sold at $90 per cubic meter while Indonesian logs
\nsold at Rp 300,000 ($30) per cubic meter. (gis)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/playwood-exports-expected-to-decline-25-in-1998-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}