May 31, 2001

SOFTWOOD  PRODUCT  MARKETS  IN  JAPAN

By Ikuo Yami Yamiguchi

 

1)  SOFTWOOD  vs.  HARDWOOD

 

Although an encyclopedia defines "SOFTWOOD" as the general term for trees that have needle-like or scale-like leaves and bear cones, the term has no reference to the actual hardness of the wood.  Most Japanese, however, may inadvertently misinterpret it.  Therefore, please be careful when using the term "SOFTWOOD" with the Japanese.  It would be safer to use the term "CONIFERS," or "Shin-yo-ju" in Japanese, rather than "SOFTWOOD," to avoid possible confusion, and in the same way, "HARDWOOD" is best explained by "Broad-Leaved Tree," or "Ko-yo-ju" or "Katsu-yo-ju" in Japanese. 

 

2)  PLYWOOD  vs.  VENEER

 

The formal term in Japanese for "PLYWOOD" is "GOHAN," but it is also colloquially called "VENEER-ITA," meaning "Veneer Laminated Boards."  Because this colloquial term is frequently shortened to "Veneer," few Japanese people know the difference between the words "PLYWOOD" and "VENEER."  So, be careful in using the terms.  Although it is not so popular for the people in general, the formal professional term for veneer is Tanpan.

 

3)  LAMINATED  LUMBER

 

Because of the latest trend in Japan for heavy timber construction, "Glulams" are experiencing a boom.  However, the traditional Japanese uses of wood components are also increasing in the form of glued lumber, as opposed to solid wood.  This applies to such items like "posts (Hashira)," "rails for sliding doors (Shikii and Kamoi)," "moldings like nageshi, (Horizontal member surrounding inside of room at the level of atop of upper rail of sliding doors)," Stepboards (Kaidan-ita,)" "Handrails (Tesuri)," etc.  A problem is that the Japanese term for these glued wood products is "Shusei-Zai," meaning "laminated lumber," whether they are a "Glulam" heavy timber, a "header" to be used for window or door openings, furnitures, posts (baby squares) or other home components as indicated above to be used for conventional Japanese homes, which are manufactured by laminating, edge-gluing, end-gluing and/or finger jointing.  Under the circumstances, if and when you are asked by Japanese about the "materials for laminated lumber (in most cases, they say "core materials for Shusei-Zai" since they are often covered by decorative veneers), be certain to ask the intended uses.  In many occasions, they do not mean laminating stock for a Glulam heavy timber but for something else, normally smaller in size. 

 

4)  METRIC  SIZE  vs.  ENGLISH  SIZE

 

The Japanese use the metric system of measure but it is just a variation of the old measuring system in Japan called "Shaku".  As you may know, the most common size for Hemlock or Douglas Fir Baby Squares are of either 4-1/8" or 3-9/16", or in the metric sizes 105mm or 90mm.  One Shaku happens to be very similar to One Foot; the former is 30.3cm whereas the latter is 30.5cm, just a difference of 0.2 cm.  The 105mm is just 35% of one Shaku and the 90mm is 30% of One Shaku.  Most of the lumber sizes used for the traditional Japanese construction are based on this Shaku system and, to make things more complicated by the different practices in sizes depend on region by region, and, therefore, you may encounter various odd sizes in discussions with Japanese importers.  The same principle applies to plywood.  The common size in Japan is considered to be 3'x6'.  However, it is not really 3'x6' (or 91.5cm x 183.0cm), but 3 Shaku by 6 Shaku (or 91cm x 182cm).  Thus, the most common interval of studs and joists is 455mm o.c. (150% of one Shaku) and not 18 inches o.c.

 

5)              SOME JAPANESE  TRADITIONAL  TERMS, NOW BEING USED FOR THE IMPORTED ITEMS

 

Although some Japanese terms used for wood construction in Japan are indicated in the Item 3) above, here are

the specific terms used these days between American suppliers and Japanese importers for their transactions.  Here are some examples.

 

HIRAKAKU literally means “square but not regular square, “namely, not like 4”x4” but 4”x8”, 4”x12”, etc.  The most typical sizes are

 

120mm x 300mm (4-3/4”x11-3/4”),

105mm x 300mm (4-1/8”x11-3/4”),

105mm x 240mm (4-1/8”x9-1/2”),

120mm x 360mm (4-3/4x14-1/8”), etc. in the lengths of 10 feet (3meters), 13 feet (4meters) and 20 feet (6meters),

mainly being used for Beams.

 

MABASHIRA literally means “posts in between, “namely, what you are familier with the term “stud.”  Their common sizes are

 

30mm x 105mm (1-1/4”x4-1/8”) and

27mm x 105mm (1-1/16”x4-1/8”)

in the length of 10 feet (3 meters).

 

TARUKI is Rafter in the sizes of 

 

40mm x 45mm (-9/16”x1-3/4”),

45mm x 45mm (1-3/4”x1-3/4”),

36mm x 40mm (1-7/16”x1-9/16”), etc.

in the lengths of 10 feet (3 meters) and 13 feet (4 meters).

 

SUJIKAI is Diagonal Bracing in the thickness of 30mm (1-1/4”), 36mm (1-7/16”) or 45mm (1-3/4”), in the width of 105mm (4-1/8”) and the length of 13 feet (4 meters).

 

STATISTICS  AND  BACKGROUND  FOR  WOOD  PRODUCTS  IN  JAPANESE  MARKET

 

The population of Japan is approximately 100 million and the Japanese use around 100 million cubic meters of wood and wood fiber annually.  In other words, on average, each person uses one cubic meter or 424 board feet of wood every year.  This used to be a general guideline, but since the early 1980's, a trend began which saw less per capita wood consumption.  Fortunately, however, a recovery is seen between 1987 and 1991, mainly reflecting the increased Yen value and the government's domestic demand stimulating policy, partly derived from American pressure, called "structural impediment talks", as referred as MOSS and Super 301.  Since 1991, however, reflecting the so-called "Collapse of Bubble Phenomenon," the depression has been continuing.

 

The quantity breakdown by country of origin of the "materials" during the past several years is shown below.  By "materials," they mean logs and materials for remanufacturing.  Therefore, finished lumber from North America and northern Europe, imported plywood from Indonesia, etc., are not reflected in these figures, but referred to in other chapters.  (Unit:  1,000 cubic meters.  Source: Japan Plywood Manufacturers Association's Statistical Yearbook and Japan Lumber Importers Association.  Also refer to Statistical Exhibits referred as Statistical Exhibits I, II, III, IV and V, as appeared in the last portion of this report.)

 

 

 

1994

1995

1996

1997

1998

1999

2000

 

Total

79,661

(100%)

79,046

(100%)

78,124

(100%)

76,049

(100%)

67,781

(100%)

67,256

(100%)

64,436

(100%)

Domestic

Species

17,440

(21.9%)

16,252

(20.6%)

16,154

(20.7%)

15,430

(20.3%)

13,400

(19.8%)

13,246

(19.7%)

13,019

(20.2%)

 

S.E. Asia

6,802

(8.5%)

5,925

(7.5%)

5,781

(7.4%)

5,233

(6.9%)

3,969

(5.8%)

 4,326

(6.4%)

4,007

(6.2%)

U.S.A../

Canada

14,325

(18.0%)

13,380

(16.9%)

12,799

(16.4%)

11,064

(14.5%)

9,079

(13.4%)

8,458

(12.6%)

8,521

(13.2%)

 

Siberia

3,896

(4.9%)

4,000

(5.1%)

3,845

(4.9%)

3,991

(5.2%)

3,362

(5.0%)

3,731

(5.5%)

3,822

(5.9%)

 

New Zealand

1,316

(1.7%)

1,366

(1.7%)

1,307

(1.7%)

1,408

(1.9%)

1,223

(1.8%)

1,148

(1.7%)

982

(1.5%)

 

Europe

-

507

(0.6%)

192

(0.2%)

140

(0.2%)

79

(0.1%)

11

(0.02%)

44

(0.07%)

 

Others

308

(0.4%)

420

(0.5%)

436

(0.6%)

398

(0.5%)

364

(0.5%)

344

(0.5%)

306

(0.5%)

Pulp & Chips

(Domestic

&  Imported)

35,574

(44.6%)

37,196

(47.1%)

37,610

(48.1%)

38,383

(50.5%)

36,305

(53.6%)

35,992

(53.5%)

33,735

(52.4%)

 

Explanatory Notes:

 

1)  Domestic indigenous species are mostly coniferous trees such as Hinoki (Chamaecyparis obtusa), Pine (Matsu), Cedar (Criptomeria Japonica), Hiba (Thujopsis dolabrata), Tsuga (Tsuga sieboldii), Ezomatsu (Picea Jezoensis), Todomatsu (Abies sachalinensis) and Karamatsu (Larch).  Some broad-leaved trees are included, such as Birch, Beech, Oak, Ash, Maple, Cherry, Shina (Tilia Japonica), Ho (Magnolia obovata) and Keyaki (Zelkova serrata makino).  All are basic materials for Japanese conventional home construction, decorative panels, cabinets and furniture.

 

2)            Species from Southeast Asian countries are represented by the general term, "Lauan," which is a broad-leaved

tree and has many different names and species according to the exact origin.  Lauan is particularly good for obtaining very thin, defect-free veneer to produce relatively thinner plywood panels than in the U.S. made panels.  Because of this, the Japanese concept of plywood (thinner defect-free hardwood panels for more decorative uses) is fundamentally different than the American concept of plywood (thicker and rather knotty softwood panels for more structural uses ).  Because of the recent remarkable increment of plywood import, mainly from Indonesia and Malaysia, plywood log imports from Southeast Asian countries have been decreasing, i.e. 26,789 M cubic meters recorded in 1973 was the largest figure, as opposed to today’s 4 million level. (See Statistical Exhibit I ).

 

3)  Species from the U.S.A. and Canada are those you are familiar with.  Regarding the quantity breakdown of imported materials by type, species and origins, please refer to the attached Statistical Exhibits II and III.

 

American species have been used not only to supplement the insufficiency of indigenous wood but also because of the higher yield obtainable from the larger logs, especially for "Finish" or "Appearance Grade" lumber or for the typical conventional Japanese structural members used for the traditional Japanese house construction, many Japanese sawmills rely on those logs, though the import of American sawn lumber is gradually increasing its ratio against logs as also shown in the Statistical Exhibits I and II.  Meantime, 1995 is the remarkable year since the quantity of sawn lumber import exceeded first time in history than the same of logs.

 

Most American species have Japanese names as follows: 

 

                 Bei-Hinoki or Bei-Hi (American Hinoki) for Port Orford Cedar,

                 Bei-Matsu (American Pine) for Douglas Fir,

                 Bei-Sugi (American Cedar) for Western Red Cedar,

                 Bei-Hiba (American Hiba) for Alaskan Yellow Cedar and

        *Bei-Tsuga (American Tsuga) for West Coast Hemlock.

 

    *(In a certain area such as Osaka, Bei-Tsuga is referred to as Bei-Toga. 

Some people also refer to Sitka Spruce as Alaska Hinoki, Western Red Cedar

as Canada Sugi, Alaskan Yellow Cedar as Canada Hinoki and Western Hemlock as Canada Tsuga.)

 

In the meantime, reflecting the campaign taken place by various Japanese language literature as well as the trade shows in Japan since 1995, continuous advertising programs, and the Japanese interest in seeking any alternative unknown species on the global basis, an interest in Southern Yellow Pine is tremendously increasing these days, especially for the interior decorative uses and the exterior decorative and structural uses.  

 

4)  Siberian species are Pine (Pinus Koraiensis), Larch (Larix olgensis), Picea (Picea Jezoensis) and Abies (Abies sachalinesis).  The log sizes are comparatively smaller than those of American species and they have less varieties in usage than American species.  Their main usages are for packaging, sheathing strips, rafters and other general uses.  However, some plywood manufacturers are now producing plywood out of Russian Larch and this trend is expanding, because plywood manufacturing industry has changes these days to use smaller diameter logs.

 

5)  The primary New Zealand species is Radiata Pine.  The same comments apply as above regarding the log sizes and usages.  Moreover, the knots are conspicuous and grain is relatively coarse (wider in width between annual rings), which also prevents its wider use.  However, pruned logs are now widely available.  Also, New Zealanders are now eager to supply to Japan their 2 by sized dimension lumber.  The same species also comes from Chile.

 

6)  Others in the above table include those items from Taiwan, China, Africa and other countries.  Especially since 1993, reflecting the price increment of North American lumber, North European's lumber to Japan is increasing as shown in the Statistical Exhibit IV.

 

HISTORY  OF  AMERICAN  LUMBER  IN  JAPAN

 

While history says Commodore Perry brought Douglas Fir block to Japan in 1853, the year of 1923 was an epoch-making year in the history of Japanese imports of American lumber.  On September 1st of that year, the city of Tokyo was completely destroyed by the Great Earthquake.  The domestic supply of lumber products was insufficient and a good quantity of American lumber, mainly in the forms of medium to large squares such as 12" x 12" to 24" x 24", was imported.  The Japanese terms for the species cited above mostly originated at that time.

 

More serious disasters came during the World War II.  Not only the city of Tokyo but more than 100 cities and towns all over the nation were destroyed by bombing.  To make the matters worse, most of the trees all over Japan were cut for the purposes of war and fuel (not only for fire wood but as a substitute of crude oil), as virtually no other resources were available.  Consequently, when the war was over, only naked mountains remained.

 

To recover, both the governmental and private sectors decided to both build as many non-wooden houses as possible and begin a major reforestation campaign.

 

Nevertheless, people cannot live without wood and the Japanese sought material in the form of logs from the U.S.A., the Philippines and later, from Siberia, New Zealand, Malaysia, Indonesia, etc.  The logs from South East Asian countries were converted into hardwood plywood and then exported to the U.S. as a major source of foreign currency.  This situation remained until the mid 1960's, when the Koreans and Taiwanese captured the majority share of Lauan plywood exports to the U.S.A., which is now captured by the Indonesians.

 

As for softwood lumber, because of insufficient supply and a gradual increase in demand reflecting the overall economic recovery, prices rose to an extraordinary high level.  Therefore, in 1961, another epoch-making year, a powerful minister of construction decided to stimulate lumber imports from North America.

 

Reacting to the minister's stimulus, Canadians started to ship their full sawn 4" baby square Hemlock by large break bulk vessels.  This trend continued for some 10 years and many American sawmills joined this business, though with frequent complaints about cyclical ups and downs.  Then the Oil Crisis ended this boom, leading to forecasts of a continuous depressed market.

 

Around that time, 2x4 construction started with the support of the government (to be described below) and a new market for American dimension lumber was created.  The baby squares were gradually changed to the traditional Japanese dimension and the 4" size was changed to other sizes.  One time, the baby squares had a share of almost 80% of the total quantity of imported lumber from North America.  Now it is only about 16%, as other sizes, mostly referred to as "custom cut", or "side cut", predominate, as referred in the JLIA statistics as "Various Sizes" which cover almost 62% of total sawn lumber import. 

 

The system of transportation has also changed.  At one time, a break bulk shipment was common.  Currently, containerization is more prevalent.  Latest statistics show that container shipments to Japan cover about 50% of total imports.  As a result of containerization, importers may now save inventory cost, however, at the same time, Canadians are also actively using new large vessels called RO-RO (Roll on Roll off), which make their shipments more efficient.

 

The successful result of the reforestation program started soon after the World War II has now created serious problem for the forest owners in Japan.  These trees, mostly Japanese Cedar, followed by Hinoki, have now grown and it is time to thin or harvest them.  Due to a lack of labor and the high cost to take care of these forest due to steep mountains and narrow mountain roads, etc., the problem will not be easily solved, being a headache of forest owners in both private and government sectors.

 

 

 

HOUSING  STARTS

 

The number of houses built, their total floor space and the average floor space per unit since the good years before the oil crisis up to now are indicated below.

 

                 Year         Number of Units       Total Floor Space         Average per Unit

 

                 1972                          1,821 M                    1,519,742 M sq. ft.                      834 sq. ft.

1973                          1,905                         1,732,812                                     909

1974                          1,317                         1,274,891                                     968

                 1975                          1,356                         1,343,853                                     991

                 1976                          1,524                         1,489,737                                     977

                 1977                          1,508                         1,514,997                                   1,003

                 1978                          1,549                         1,611,081                                   1,040

                 1979                          1,492                         1,620,408                                   1,086

                 1980                          1,268                         1,280,321                                   1,010

                 1981                          1,152                         1,159,397                                   1,006

                 1982                          1,146                         1,157,086                                   1,010

                 1983                          1,137                         1,068,981                                     940

                 1984                          1,187                         1,077,430                                     908

                 1985                          1,236                         1,108,647                                     897

                 1986                          1,365                         1,193,259                                     874

                 1987                          1,674                         1,424,637                                     851

                 1988                          1,685                         1,446,169                                     859

                 1989                          1,663                         1,451,551                                     873

                 1990                          1,707                         1,484,388                                     870

                 1991                          1,370                         1,260,115                                     920

                 1992                          1,403                         1,278,104                                     911

                 1993                          1,486                         1,415,581                                     953

                 1994                          1,570                         1,564,309                                     996

                 1995                          1,470                         1,466,989                                     998

                 1996                          1,643                         1,697,412                           1,033

                 1997                          1,387                         1,388,696                                   1,001

                 1998                          1,198                         1,201,442                                   1,003

                 1999                          1,215                         1,269,430                                   1,045

                 2000                          1,230                         1,320,611                                   1,074

 

Up until 1967, housing starts per year were less than one million.  Rapid growth started in 1968 to record a peak of 1,905M dwellings in 1973.  However, due to the first oil crisis, a drastic drop occurred in parallel with increased cost of land and building materials.  Lowering of real income was another factor of decline and such discouraging trend continued until the early part of the 1980's.  However, because of the increased yen value, favorable money supply and generally good economic situation, a tremendous recovery is observed since 1986, so much that 1990 was the third best year in Japanese history.

 

Japan has now a sufficient number of houses (existing houses now total 36 million units, whereas the number of households is 33 million).  The houses to be built from now on must be better in quality and greater in space, to replace the old, narrow and deteriorated houses, most of which were built soon after the World War II using cheap materials.  Most of such houses and buildings were victims at the time of Kobe Earthquake, January 17, 1995.  Conforming to this basic understanding, recent trends show that floor space per unit is gradually increasing as shown above.

 

While the trend to increase the space of single family dwellings is still continuing, another trend is the inability of people to buy detached house due to extraordinarily high cost.  Many people must stay in high-rise concrete apartments, the space of which is usually not so large.  Ridiculously enough, such apartments are called a "mansion" in Japanese and we even use the very funny expression of a "one room mansion".  Originating from the Japan Housing Corporation's (Quasi-government organization) term, we use the terms 1DK, 2DK, 3DK, 4LDK, etc. for the sizes of a house.  DK stands for "Dining Kitchen" or a kitchen with the space to place a dinner table.  A kitchen not large enough to place a dinner table is symbolized as "K".  "L" stands for living room, so, 4LDK means 4 rooms (for multiple purposes of a bedroom and other uses such as Tatami-mat rooms), one living room (normally in Western style) and one dining Kitchen.  Most commonly, the size of a room is good for 6, 8 or 4.5 Tatami mats, namely, roughly 9'x12', 12'x12' or 9'x9', respectively.

 

Meantime, some important points we should realize are the facts that we still have a stable market of more than one million housing starts, which is the second largest market in the world, next to the U.S.A., and that the quality has been much improved.

 

Another thought should also be given to the market of "Repair and Remodeling."  As indicated above, a number of old, narrow and deteriorated houses still exist.  Many of those who cannot afford new houses must repair, rehabilitate or remodel their existing homes.  Thus, our campaign toward the Repair and Remodeling, or Reforming, including the "Outdoor Living Idea", or recent popular term of “Gardening”, is highly popular.  However, the “Collapse of Bubble phenomenon” started in 1991 got into the worst situation in 1997/1998 and we are now hoping the earliest economic recovery.  Incidentally, another favorable new trends are towards the "3-story, multi-family wooden construction", which is mentioned at the latter part of this report, and more consciousness on lumber products for more precise pre-cutting and related drying, due to CAD / CAM fabrication for home components is getting popular.

 

Breakdown of Housing Starts in 1999/2000

 

 

1999

2000

2000/1999

Total

1,214,6011  (100%)

1,229,843  (100%)

+1.3%

Wood P & B

489,680  (40.3%)

476,700  (38.8%)

-2.7%

Wood 2x4

75,864  (6.2%)

79,114  (6.4%)

+4.3%

Pre-fab

185,724  (15.3%)

175,069  (14.2%)

-5.7%

Other Non-Wood

463,333  (38.2%)

498,960  (40.6%)

+7.7%

 

TYPE  OF  HOUSE

 

Although the wood related industries in Japan are working hard to keep the ratio of wooden houses as large as possible, the share of non-wooden houses, such as concrete buildings, houses with steel posts and beams, etc. is increasing, with the ratio as indicated above.  However, wooden houses in 2000 cover 692,796 square feet, or 52.5% of the total floor space.  In other words, wooden houses are relatively larger than non-wooden houses.

 

Since the majority of wooden houses is still traditional Japanese homes, American suppliers of wooden materials to the Japanese market should try to conform to traditional Japanese specifications, in addition to the campaign for 2x4 construction.

The specifications for lumber for conventional houses have many varieties.  Supposedly there are some 400 different sizes, whereas American dimension lumber has its five basic sizes only.  One typical example is the baby square in full sizes of 4-1/8" x 4-1/8" (105mm x 105mm) and 3-9/16" x 3-9/16" (90mm x 90mm) in lengths of 10' and 13', which are used not only as the structural members of a house but are sometimes a part of the interior decoration, the surface of which is kept natural and unfinished.

 

Because of this fact, the Japanese are attaching to the whitish fine grain unknotty wood and thusly, a fine grain Cascade type Hemlock is preferable, especially for the "post" size of 4-1/8" squares, while this consideration is

less important for the "purlin" size of 3-9/16", or the "beam" sizes of heavy timber in Douglas Fir, since they are concealed.

 

As indicated above, Japanese specifications have many varieties.  Under such circumstances, there are many opportunities for American suppliers to find out specifications which best suit their mill's production.

 

WOOD  FRAME  PLATFORM  CONSTRUCTION

 

In 1974, a new building code recognizing wood frame platform construction was added to the conventional building methods such as post and beam construction, concrete buildings, prefab home, etc. and North American dimension lumber has got a great penetration into the market.  Incidentally, this new construction system is generally called in Japan the "2x4 construction system." i.e., that "Made in Japan" English terms have got also popular in the United States these days.

 

Contrary to the enormous anticipation that prevailed at the time of its official recognition in 1974, the development of "2x4 construction" has been rather slow and the progress of this construction is as follows:

 

                 1974.........................................