Voluntary Report - public distribution

**Date:** 4/26/2004

**GAIN Report Number:** JA4034

JA4034

**Japan**

**Solid Wood Products**

**Japanese Plywood Production Drives 2003 Larch Log Imports from
Russia**

**2004**

**Approved by:**

![](media/image1.wmf)Kevin Latner

U.S. Embassy

**Prepared by:**

Masaoki Nagahama

**Report Highlights:**

As Japanese domestic plywood manufacturing industry has shifted from
hardwood to softwood plywood production, manufacturers are increasingly
using Russian larch. Russian larch imports now represent over 45%, or
2,171,000 m3, of total Russian log imports and are up over 10% in 2003,
from the previous year. Total log imports from Russia were 4,671,000 in
2003, up almost 7% from the previous year.

Includes PSD Changes: No

Includes Trade Matrix: No

Unscheduled Report

Tokyo \[JA1\]

\[JA\]

Imports of Russian logs in 2003 were 4,671,000 cubic meters (m3), up by
over 300,000 m3 from the previous year, rebounding after a decline in
volume of approximately 470,000 m3 in 2002. In 2002, Japanese log
imports from Russia totaled 4,530,000 m3. Russia logs are principally
converted into softwood lumber and plywood products.

Imports of larch, the predominant species imported from Russia, were up
10.4% in 2003 to 2,171,000 m3. Larch accounted for 46.5% of Japanese log
imports from Russia. This is principally a result of the Japanese
domestic plywood manufacturing industry shifted from hardwood to
softwood plywood production, where larch is the principal input.

Russia is also an important supplier of sawn and manufactured softwood
products to Japan. These wood product imports grew 10.7% in 2003, from
the previous year. The growth was partly the result Japanese
manufacturers shifting production offshore to Russia. Often Japanese
manufacturers provide the financial and technical backing for Russian
production facilities.

Imports of Russian hardwood were 244,000 m3 in 2003, up 25% from the
previous year, as shown in the summary table below.

+-------------------------------+-----------------+-------------------+
| Japanese Wood Imports from    |                 |                   |
| Russia in 2003                |                 |                   |
+-------------------------------+-----------------+-------------------+
| Product Line / Wood Species   | Volume (000m3)  | \% Change (02/03) |
+-------------------------------+-----------------+-------------------+
| Logs - *Ezo Spruce*           | 1,090           | \+ 7.1%           |
+-------------------------------+-----------------+-------------------+
| #  Larch                      | 2,171           | \+ 10.4%          |
+-------------------------------+-----------------+-------------------+
| *Red Pine*                    | 1,388           | \+ 1.6%           |
+-------------------------------+-----------------+-------------------+
| *Korean Pine*                 | 22              | \- 3.8%           |
+-------------------------------+-----------------+-------------------+
| Logs for Solid Wood Products  | 4,671           | \+ 6.8%           |
+-------------------------------+-----------------+-------------------+
| Pulp Log Imports              | 160             | \+ / - 0          |
+-------------------------------+-----------------+-------------------+
| Softwood Log Import           | 4,831           | \+ 6.7%           |
+-------------------------------+-----------------+-------------------+
| Softwood Lumber Import        | 761             | \+ 10.7%          |
+-------------------------------+-----------------+-------------------+
| Hardwood Import               | 244             | +25.0%            |
+-------------------------------+-----------------+-------------------+

(Source: Japan Lumber Importers Association)

End of Report.