There has been a noticeable halt in the declining prices of domestic logs and lumber in Japan during mid-May. The prices of laminated whitewood posts and laminated cedar posts, which are competitors to KD cedar posts, have reached their lowest point, leading to controlled inventory of imported lumber.

Since the wood shock experienced in spring 2021, the demand and supply of domestic lumber have been closely intertwined with the demand and supply of imported lumber. Consequently, as the inventory of imported lumber decreases, the availability of domestic lumber is expected to tighten.

In reality, there is a shortage of low-quality whitewood studs, and the production of cedar studs is unable to meet the demand. The price of 3m 20 x 105/ 45 x 105 mm cedar KD studs is currently around 70,000 yen per cubic meter, including delivery. However, the price of cedar squares in some markets has fallen below 70,000 yen, causing concern among sellers about the possibility of further price reductions. Lumber companies find it challenging to lower the price, which resulted in price stabilization during May.

As lumber prices declined, log prices followed suit throughout May. Particularly, the price of cedar logs used for lumber or plywood showed weakness in the northeastern to Kyushu regions of Japan. In Eastern Japan, the price of cedar logs has been decreasing since February 2023, while Western Japan saw a decline starting in April 2023, resulting in different cedar log prices between the two regions.

In Eastern Japan, the price of 4m cedar logs for lumber plants, laminated lumber plants, and plywood plants is approximately 11,000 to 12,000 yen, which is about 1,000 yen lower than the previous month. In the Kanto region, the price of 3m cedar logs is around 12,000 yen, while in the Kyushu area, it ranges from 14,000 to 17,000 yen.