Better plywood prices predicted next year
Better plywood prices predicted next year
JAKARTA (JP): Indonesia's plywood exporters are expected to
earn much more next year because of better world prices, a
forestry executive predicted yesterday.
A. Tjipto Wignjoprajitno, the executive chairman of the
Association of Indonesian Wood Panel Producers, said his
predictions were based on the condition of plywood markets in the
United States, the United Kingdom and Japan, which were the
benchmark of world plywood prices.
"We are optimistic about the situation in 1997 because
economic conditions and market trends are favorable," Tjipto
said.
He explained that in Japan -- Indonesia's main plywood market
-- the price of Indonesian concrete and floor-base panels was
rising.
The price of concrete panels which conform with Japanese
Agricultural Standards (JAS) is expected rise 8.1 percent, or
about US$35, to $465 a cubic meter next month.
The price of concrete panels which conform with Indonesian
Wood Panel Standards (IPS) is also likely to rise 8 percent, from
$420 a cubic meter in January to $455 a cubic meter next month.
The price of non-IPS concrete panels is expected rise almost 9
percent from $395 a cubic meter in January to $430 a cubic meter
next month.
"(The increase in non-IPS panel prices) is mainly caused by
the shortage of concrete panel conforming with JAS and IPS which
has made Japan willing to accept non-IPS panels," Tjipto was
Antara.
Tjipto said price rises in the Japanese market were followed
by an increase in import volumes.
Indonesia's total plywood exports to Japan in the last 11
months increased 20 percent to 3.6 million cubic meters mainly
because of Japan's housing industry growth, a strong economic
recovery and low interest rates.
He predicted that Indonesia's plywood exports to the U.S and
the U.K. would also increase next year.
The U.S. market is expected to absorb up to 1.7 million cubic
meters of Indonesian plywood this year.
Tjipto said U.S. prices of plywood products were expected to
increase next year by an average $12 a cubic meter.
He predicted the United Kingdom's demand for Indonesian
tropical wood would increase 10 percent next year with the
pound's appreciation and the country's improving economy.
The U.K. imports about 250,000 cubic meters of Indonesian
plywood yearly. Tjipto predicted plywood prices in the U.K. would
increase next year by $6 a cubic meter on average. (pwn)