One agent told TTJ that some large importers are running low on Far Eastern ply stock and are looking to smaller importers to plug the gaps. He also said prices had risen 10% in recent weeks.
He said: “Everyone is a bit concerned about the ways things are going and we do not see any end in sight in the short to medium term.”
Another agent confirmed the price rises and said log availability in the Far East was “tight” and log prices were rising. Some importers were “struggling” to secure the volumes they needed, he added.
He said: “Other markets are giving the mills better price levels. If we do not accept the price we will lose out.”
The agent said countries such as France and Belgium were willing to pay 3-4% more for their Far Eastern plywood. “The UK market is definitely resisting the increases.”
Another plywood trader said: “Some companies are facing shortages. We will see them start to struggle this month. There are big supply problems coming.
“It will take a few months before we can see any improvement in the supply.”
The trader has received several calls from large importers asking about availability.
He said the Indonesian government had clamped down on illegal logging and was restricting new timber concession cutting licences, while cheaper Chinese plywood was continuing to flow into the UK.
James Latham has become one of the first importers of FSC Indonesian plywood from PT Tjipta Rimba Daja, which is operating with UK-based sales agent Cipta which signed up to The Timber Trade Federation’s Responsible Purchasing Policy last year.
