Malaysian timber exports slowed in the first four months of this year, prompting concern among timber exporters of another slowdown in the US economy.
According to preliminary statistics from the Malaysian Timber Industry Board (MTIB), sawnwood exports earned RM786m for the first four months of 2011, a decline of 7.8% on the same period in 2010. Volume-wise, the decline was 4.4%. Compared to the first half of 2010 log exports were down by 18.7% at RM625m.
However, exports of builders’ woodwork and joinery rose by 12% to RM338m and fibreboard exports registered an increase of 8% to RM393m.
Japanese imports of Malaysian plywood have slowed as plywood importers evaluate their inventories. News is circulating that some importers have run out of storage space in their warehouses.
According to statistics released by the Sarawak Timber Industry Development Corporation (STIDC), Sarawak’s exports of plywood to Japan amounted to RM476m in the first quarter of this year. However, exports of plywood rose to RM926m in the second quarter, an increase of more than 65% compared to the same period last year.
The STIDC said that the flow of logs to domestic mills has returned to normal and that the state’s plywood mills, which have a combined capacity of 4 million m3, are now operating at about 70% of capacity. Sarawak’s exports of plywood to South Korea, its second largest market after Japan, fell from RM107m in the first quarter to RM55m in the second quarter as a result of anti-dumping duties imposed by the South Korea Trade Commission.
Nevertheless, Sarawak exported RM2.1bn worth of panel products in the first half of this year compared to RM1.95bn in the same period last year. However, the volume was 1.3 million m³, down from 1.46 million m³ in the first half of 2010.
