The fall US China Build sales mission and seminar series achieved great success. According to registration record, there were 420 people attended the seminars in the three Chinese cities. Most of the attendees were design professionals, developers and distributors.   During the seminars, publications from SEC and the other cooperators were distributed.  The China office is in the process of analyzing the questionnaire collected from seminar audiences and will provide details for follow up and improvement for the Spring 2009 activity.  

 

 Between January and August 2008, the world total American softwoods exports were $444 million. Canada was leading importer with $119 million, followed by Mexico with $77 million, Japan with $46 million, and China with $17 million.  Korea increased its imports over 500% and bought $7.9 million softwoods from U.S.   Vietnam imported $1.3 million increased 37% from 2007.
 
South Korea
South Korea has the highest American softwood imports rate of 2008.  The imports increased 531% comparing the first 8 months of 2007 and reached $8 million. The most demanded species were Hemlock, D-Fir and SYP. Hemlock and D- Fir imports made around $6 million out of $8 million. D-Fir mbf price is $601.
 

 

	Value			Quantity		$/m3
KOREA	2007	2008	m3	2007	2008	2007	2008	2008 mbf
SOFT/ LUMBER	1,259	7,947	m3	4,202	35,684	$ 299.62	$   222.70	$   525.58
R,D,HEMLOCK	131	4,334	m3	831	22,695	$ 157.64	$   190.97	$   450.68
HEM-FIR MIX	377	250	m3	1,408	1,006	$ 267.76	$   248.51	$   586.48
D,D-FIR	259	1,685	m3	847	6,616	$ 305.79	$   254.69	$   601.06
R, FIR	42	153	m3	80	513	$ 525.00	$   298.25	$   703.86
D, R, SY PINE	166	449	m3	294	1,081	$ 564.63	$   415.36	$   980.24
TOTAL	1,259	7,947	m3	4,202	35,684	$ 299.62	$   222.70	$   525.58

Market Briefs
According to MLIT, the number of housing starts in July 2008 was 97,212 -unit which was 19.0% above the same period of July 2007. It increased for the first time in 13-month due to the establishment of the new BSL in 2007. The annualized figure after seasonal adjustments in July was 1,144,000-unit.
The wooden house ratio was 46.6% ( 45,335-unit ) in July 2008.
The number of housing starts by Post and Beam system was 34,784 - unit which was 17.7% increased compared to July 2007. 2x4 system was 9,011-unit which 32.5% increased compared to July 2007.
 
According to MLIT, the number of housing starts in August 2008 was 96,905 -unit which was 53.6% above the same period of August 2007. The annualized figure after seasonal adjustments in August was 1,130,000-unit. It was obvious that the housing starts finally recovered from the impact on the new BSL changes of 2007.
However; it is also expected that house owners seem to refrain from buying and building new houses due to the confusions of the global economical situations.
The wooden house ratio was 47.9% ( 46,391-unit ) in August 2008.
The number of housing starts by Post and Beam system was 35,543 - unit which was 38.5% increased compared to August 2007. 2x4 system was 9,243-unit which 55.9% increased compared to August 2007. 

 

JAS RFCO Certifications to Be Nullified in February 2009
MoAFF implemented a three year grace period starting March 1, 2006 so that all
existing RFCO's (registered foreign certification organizations) and certified mills could
continue to operate under the current system until March 1, 2009. The grace period
expires at the end of February 2009, so mills have to get re-certified to JAS under the
new ROCB (registered overseas certification body) in order to continue supplying JAS
graded product.

Japan Housing Finance Agency Releases New Technical Specifications
The Japan Housing Finance Agency (JHFA) released a new version of their
specifications in late September 2008. This manual is used by many banks when
issuing loans to consumers. AF&PA's technical consultant is a member of the
committee that drafts the standards.

2x4 Fire-Resistive Construction
There have been 883 2x4 buildings registered as fire-resistive buildings in 31
prefectures to date. This includes 525 single family houses, 253 apartment buildings, 15
social and welfare accommodations, 65 office-residential buildings, 5 commercial
building and 20 other types of buildings. 29 of these buildings were four-story buildings,
and one was a five-story building. The number of the 2x4 wooden buildings constructed
in fire protection districts is 702 out of the total of 883 (approximately 80%). Most of the
fire-resistive buildings have been registered in Kanto (Tokyo), but an increase in health
and welfare applications will be a growth market in the regions.

 

Summary of Wooden Starts

 

TYPE	2007	2008	Change
Total	343,411	325,150	105.6%
Single Family	176,232	170,918	103.1%
Rental Units	89,787	74,088	121.2%
Company Housing	1,064	912	116.7%
Speculative Housing	76,328	79,232	96.3%

 

Summary of 2x4 Starts

 

TYPE	2007	2008	Change
Total	67,561	59,539	113.5%
Single Family	19,238	17,850	107.8%
Rental Units	36,406	28,827	126.3%
Company Housing	82	102	80.4%
Speculative Housing	11,835	12,760	92.8%