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)