Eucalyptus plywood supply in Vietnam is tight

Eucalyptus plywood supply in Vietnam is tight

The supply of Eucalyptus plywood used as packing boxes in Vietnam is becoming increasingly tight, so the distribution to Japan is declining dramatically.

In Vietnam, large plywood factories built in China are being built one after another. In May, a plywood plant with a monthly output of 30,000 m 3 near Hanoi began operation, while another plywood plant with a monthly output of 20,000 m3 will also start construction near Hanoi.

These factories buy large quantities of Eucalyptus veneers as raw materials, so factories that produce for the Japanese market cannot obtain enough veneers.

Large factories use eucalyptus and Acacia veneers, but most use eucalyptus. The products are used in the interior materials of trailers in the United States and South Korea and as the base materials for floor heating. The prices of these projects are much higher, so it is unlikely that large factories will produce inexpensive packaging plywood for the Japanese market.

Competition in the purchase of raw veneers has pushed plywood prices up to $350 per m3 CFR and is expected to increase further.

This price level is too high for the Japanese market. Importers in Japan believe that this is not a temporary price rise, but a result of product structure changes, so the future supply will be very unstable.

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