II Wood Industry and the Supply and Demand of Wood
1. Present State of the Wood Industry
Japan's wood imports have been shifting from logs to processed wood products. With the drop in imported logs, the number of sawmills which processed mainly imported logs has also decreased.
The share of precut construction materials has been rising year by year, reaching 60% in 2002. Because laminated lumber is dimensionally stable and suitable to the precut-process, the amounts of laminated lumber produced domestically and imported in 2002 have risen three times and 17 times, respectively, from ten years ago.
2.Challenges toward the Development of a Secure and Stable Supply
Productivity of sawmills should be improved by restructuring or enlarging small-scale sawmills. In some areas, some mills should be transformed into lamina or laminated lumber factories in response to supply of middle-sized logs, which are too large as raw material for pillars.
In view of the effective use of wood biomass resources, it is necessary to examine the effective methods for transporting unused leftover wood in forestlands and to establish a system to utilize these resources as raw material for laminas and chips, by increasing the scale and efficiency of factories.
To promote the use of wood, housing constructors and consumers should be provided with detailed information on wood products such as the price, quality and performance. Also, a system should be established that provides a stable supply, in both timeliness and amount, through information networks.
3. New Trends in Domestic Wood Supply
The export of logs to China is increasing, which is experiencing a continuous economic growth. In 2003, 5,800 m3 of logs were exported. The establishment of a supply system should be considered if the research on the overseas supply and demand trends overseas shows a demand for Japanese logs is anticipated.
There is an initiative aiming at providing houses that widely utilizes domestic solid lumber through cooperation among sawmills and house builders. The use of solid lumber meets the consumers' interests which demand "reassurance" and "safety" on goods and services.
4. Supply and Demand and the Price of Wood
The self-sufficiency rate of industrial timber fell 0.2 points from last year to 18.2%, due to a stagnation in forestry production activities caused by the downturn in wood prices. The demand for wood products is expected to have risen in 2003. The price of Japanese Cedar (Sugi) products has remained below that of structural laminated lumber.

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