In particular, thin panel of 2.5mm prices shot up to about US$1,000m3 C&F, the highest record.

Weather in Indonesia is much worse than Malaysia and with tightening control of illegal harvest, log production is plunging.

Log production seems to have dropped more than half of normal pace with no sign of recovery. By this log supply shortage, plywood mills’ deliveries are largely delayed. Even regular suppliers are two to three months behind schedule and some have not delivered volumes contracted last summer.

Looking at price trends for Indonesian plywood, the bottom prices were summer of 2016 when 4mm plywood prices were about US$600m3 C&F, which are about US$750, 25% up; 2.5mm panel prices were US$720-750 in 2016, which are now over US$950 with some offer of US$1,020.

In Japan, 2.5mm panel market prices were 350-390 yen per sheet in summer of 2016, which are now about 500 yen; 4mm prices are 630-650 yen, 30-50 yen up from February.