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Hard Time For Plywood Manufacturers In Malaysia

    • 625 posts
    July 25, 2022 9:00 AM +0430

    Hard Time For Plywood Manufacturers In Malaysia

    Malaysian plywood manufacturers have lost market share in Japan, their key export market, due to stiff competition from Indonesian suppliers and the sharp increase in local production of plywood from domestic softwood resources.To get more news about commercial plywood, you can visit official website.

    Statistics from the Sarawak Timber Industry Development Corp. (STIDC) reveal that Sarawak plywood export volumes fell to about 1.12 million cubic metres, worth RM2.26 bil (FOB), in 2019 from 1.43 million cubic metres (RM3.03 bil) in 2018 and 1.74 million cubic metres (RM3.27 bil) in 2017.

    Despite the drop in sales, in 2019 Japan was the top buyer of Sarawak plywood absorbing 733,051 cubic metres (RM1.59 bil) or more than 70% of the state’s total plywood exports.

    On the 12th of November 2019 the Vietnamese Minister of Industry and Trade of Vietnam signed and announced Circular No. 22/2019/TT-BCT on Temporary Suspension of border-gate transfer business and temporary import of plywood (HS 44.12) into Vietnam for re-export to US. This Circular takes effect from December 27, 2019 to December 31, 2024.

    While export of Chinese plywood for the US is decreasing by trade conflict and Vietnam is taking over such business and export to the US is increasing but there is some concern that some Chinese outfits are exporting Chinese made farm products and industrial products as Vietnamese products and ship out to the US through Vietnam to avoid the increased duties in the US.

    Since last June, the Vietnamese government tries to stop such detour trade and tightened rules and penalties on Chinese products, which are destined to the US as Vietnamese products and this new regulation is one of such restrictions.