Malaysia and Indonesia plywood manufacturers to raise export prices amid currency shifts

Plywood manufacturers in Malaysia and Indonesia are expected to significantly raise export prices, driven by the appreciation of their local currencies against the US dollar, according to the Japan Lumber Reports (JLR), as cited in the latest International Tropical Timber Organisation (ITTO) Tropical Timber Market Report. Antalya escort

The Malaysian ringgit and Indonesian rupiah have strengthened against the US dollar in recent months, prompting plywood suppliers to adjust pricing to maintain margins. The trading of plywood in these countries is traditionally conducted in US dollars, amplifying the impact of exchange rate fluctuations on export pricing.

The JLR highlighted that the price of 12mm plywood for concrete formwork remained stable in South Asia during November. However, suppliers in both countries have indicated plans to strongly raise prices in the coming months to account for currency appreciation.

Domestic plywood market in Japan sees mixed trends

Meanwhile, Japan’s domestic plywood market is experiencing its own shifts. Shipments of softwood structural plywood surged in October, reaching 204,000 cubic meters—a 10.3% increase compared to September. This marked the highest monthly shipment volume in 2024.

Despite increased shipments, the price of plywood in Japan had been declining steadily until mid-November. However, major plywood manufacturers in Eastern Japan announced plans to halt price reductions in December, citing a combination of higher autumn shipments, reduced inventory levels, and extended delivery times.

Impact on the broader wood industry

The broader wood market in Japan remains under pressure, with domestic lumber and log supplies tightening. The shortage of cypress lumber, in particular, has caused price increases for both cedar and cypress logs, especially in regions like northern Kanto and southern Tohoku.

The report adds that Japan’s housing demand has been subdued this year, leading to a drop in production. However, there are signs of recovery as new orders begin to pick up.

With plywood suppliers in Malaysia and Indonesia adjusting export prices and Japan’s domestic market showing signs of stabilization, the global plywood trade is expected to remain dynamic in the coming months.