Plywood exports to rise in September

JAKARTA (JP): The Association of Indonesian Wood Panel Producers (Apkindo), counting on favorable prices and strong market demand, plans to increase the volume of its plywood exports in September.

Apkindo executive chairman A. Tjipto Wigjoprajitno said yesterday that Indonesia will try to increase its export volume without bringing down prices.

"Hopefully prices will remain as stable as they are now...but it really depends on the market," he said.

Tjipto refused to specify how much of an increase, but admitted that market demand was currently stable.

He predicted that the situation would improve next month, when plywood importer countries resume construction work.

"If the economies of these countries improve, we may even see prices go up," he said.

Tjipto said plywood producers would have no problem increasing their production, but pointed out that for every increase, producers need to make sure that there is a sustainable supply of raw materials, sound transportation facilities, favorable future price estimations and sound production capacities.

Tjipto said export prices of plywood began recovering last month when they neared US$500 per cubic meter.

The recovery was attributed to a sharp rise in the demand for products made of waste wood.

During the first four months of this year, prices of Indonesian plywood averaged $496 per cubic meter, higher than $426 in the same period of last year, Tjipto said.

The improved prices were recorded in almost all of Indonesia's 13 major plywood markets, which include the United States, Canada, Europe, China, Hong Kong, Taiwan, Southeast Asia, Japan, South Korea and the Middle East.

Prices in Singapore, which showed a record increment of almost 99 percent, shot up to $684 per cubic meter in April from an average of $344 in the corresponding period of last year.

Meanwhile, in the United States and Canada, prices escalated 31 percent from $492 to $648 per cubic meter. In South Korea, prices went up 23 percent from $352 to $443 and in China by 18.4 percent from $467 to $553.

Tjipto said, however, that prices dropped in Southeast Asia -- except Singapore -- and in the Middle East, from an average of $560 and $449 per cubic meter to $485 and $376, respectively.

During the January to April period, Indonesia reaped some $280 million in revenues from plywood exports. (pwn)