The impact of Malaysian log shortage on the timber industry and turbulence!

The impact of Malaysian log shortage on the timber industry and turbulence!

_Malaysian logs and Indonesia are facing severe supply shortages, which have resulted in many plywood factories operating very hard and forced to suspend their work. Stoppage and shortage of logs not only affect Malaysia, but also seriously affect other Southeast Asian countries, such as the Philippines, Thailand and Vietnam, which rely on Malaysia to import timber.

Japan Lumber Report (JLR) said that high log prices and ultra-low selling prices (plywood products) in Malaysia and Indonesia were putting the two countries at a critical juncture.

Japan is also one of the affected countries. Japan imported 12 mm structural and concrete forming plywood (4,000 cubic metres) from Malaysian Timber Company every month, and Indonesia imported 10,000 cubic metres coated concrete forming panel (CCFP) every month.

Indonesia’s problem is that it has been buying small quantities of low-grade logs to make concrete sheets, but because the Indonesian government has banned logging to develop palm farms and so on, it has become extremely difficult to buy logs less than 60 cm in diameter. As a result, its products sold to the Middle East are gradually decreasing.

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