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Record import prices for wood chips in Japan in the fourth quarter of 2008.

Import prices for wood chips in Japan in

The overall imported wood fiber consumption at Japanese pulp mills have slowly grown over past 15 years, having up till the level of 19.1.million tons in 2008, having the share of hardwood fiber in the amount of 13 million tons. It is possible to compare such numbers with the overall usage of 18.7 million tons in 2005 and 18.4. million tons in 1993. Japanese pulp industry has always used imported wood chips, delivered from the Pacific Rim. In 2008, the country bought 84 percents of overall Taiwan, China and South Korea chip sales.

In 2008, Japan imported over 72 percents of wood fiber, mainly hardwood chips, necessary for appropriate industry sector. Since 1993, Japan imported approximately 40 percents of hardwood chips from Australia, Vietnam, Chile and South Africa. At the same time, the country reduced the usage of softwood fiber, which in 2008 reached highly low level of 6.1. million tons. This number is nine percents lower than the one of the year 1993 and confirms the reduction of imported softwood fiber usage.

In the fourth quarter of 2008 Japanese pulpmills payed expensive prices for imported wood chips. The softwood chips prices raised up to 203 USD per oven- dried metric ton in the first quarter of 2009 in comparison with the price of 157 USD per oven- dried metric ton, which has been two years ago. Imported hardwood chips prices have also has the tendency to grow within pas several years and have reached the level of 201 USD per oven -dried metric ton in the third quarter of 2008. The average price dropped down to the level of 187 USD per oven –dried metric ton in the first quarter of 2009. The cheapest wood chips supplies in 2008 were Thailand, Malaysia and Vietnam, while Australia, South Africa and Chile were the most expensive ones.

As wood industry experts indicate, in 2009 Japan had the lowest record imported wood chips volume, which occurred due to manufacturing volumes cut - off. And, reduced demand for wood fiber will cause prices to drop more than within past few years.

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