Sarawak's Exports of Log and Timber Products Grew One Percent to RM3.71 Billion

Sarawak's exports of log and timber products grew one percent to RM3.71 billion in the first six months of 2011 from RM3.67 billion in the previous corresponding period. According to Perkasa, the Sarawak Timber Industry Development Corporation (STIDC)'s latest quarterly newsletter, the increase was due to prolonged shortage and strong demand from overseas buyers, especially from Japan. It said plywood remained the major contributor, accounting for 56 percent or RM2.1 billion of the total export value, followed by logs (25 percent or RM0.9 billion) and sawn timber (nine percent or RM0.3 billion). Exports of logs to India, Taiwan and Japan constituted 85 percent of the total export value from January to June 2011. Although the export volume was smaller than the first six months of last year, the foreign exchange earnings were higher due to better prices as the prolonged log shortage and sudden surge of demand in timber products from Japan caused a rise in the average selling prices. Despite the anti-dumping issue, Perkasa said, the top importer of Sarawak timber and timber products, Japan, was reported to have increased its imports for the rebuidling of a coastal town destroyed in a recent earthquake and tsunami. However, buyers from Japanese companies slowed down in late May as their plywood warehouses were full. Since March, Sarawak's plywood exports to South Korea plunged sharply after the imposition of anti-dumping duties on major suppliers. It was the first time that Sarawak plywood suppliers were accused of dumping their products in the international market. During the first six months of this year, South Korea purchased at 130, 672 cubic metres of plywood, a drop of 54 percent or 283, 493 cubic metres, from the same period in 2010. Meanwhile, Sarawak Second Ressource Planning and Environment Minister Datuk Amar Awang Tengah Ali Hasan was confident that export values of timber and timber products could reach RM7.4 billion this year compared to RM7.2 billion last year if the market remained stable in the third and fourth quarters. Source: bernama.com