Japanese housing recovery boon for Malaysian timber
Wednesday, 12 March 2008
Japanese housing starts, which collapsed in 2006 due to regulatory changes, show signs of revival. This should, in turn, lead to a recovery of Malaysia's timber industry for which Japan is the biggest market, reports thestar.com.
Two foreign brokerages issued calls to upgrade the fallen timber sector in the last one week.
Plywood prices had fallen about 30 per cent since the third quarter of 2006 after Japan's housing starts slumped when the government introduced stricter inspection checks. That caused housing starts to plunge 44 per cent in September last year to a 40-year low.
Since November, however, some of the rules were relaxed and as a result, housing starts declined at a lower rate in January, with the possibility of more inspection procedure to be loosened. Japan, the world's biggest importer of tropical hardwood, is the most important market for Malaysia's timber industry.
Two foreign brokerages issued calls to upgrade the fallen timber sector in the last one week.
Plywood prices had fallen about 30 per cent since the third quarter of 2006 after Japan's housing starts slumped when the government introduced stricter inspection checks. That caused housing starts to plunge 44 per cent in September last year to a 40-year low.
Since November, however, some of the rules were relaxed and as a result, housing starts declined at a lower rate in January, with the possibility of more inspection procedure to be loosened. Japan, the world's biggest importer of tropical hardwood, is the most important market for Malaysia's timber industry.