Export prices of plywood in Malaysia and Indonesia soared

Export prices of plywood in Malaysia and Indonesia soared

Before log production resumes, the rainy season begins in August, and log production will remain low until the rainy season ends in March next year.

Timber prices continue to be strong, and the Sarawak government will start raising the harvest tax in January next year, which will be another factor driving up the price of timber.

Sarawak’s main plywood manufacturer has accumulated orders for nearly six months due to delayed production and delivery. Compared with coated panels, structural and uncoated concrete forming panels are relatively easy to produce, while coated concrete forming panels require high quality logs, which is difficult to achieve, so the manufacturing is limited.

In fact, many plywood factories have been forced to cut back because of the shortage of wood supply. Depending on the quality of the logs they get, they decide what to produce. The same is true for Indonesian plywood manufacturers, which are short of timber supply and rising labor costs. As a result, they also studied Malaysia and raised export prices.

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