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37.8 percent in volume and 45 percent shortages. the EU-28 surged, with volume rising 38
in value, driven primarily by Film Face South Korea imported 1.95 million percent and value increasing 82 percent
Plywood and Combi Plywood demand. cubic metres of plywood during January– year-on-year in Q1 2026.
The US market experienced the steepest November 2025, up from 1.62 million Exports to the UK climbed from
decline. Indonesia’s plywood exports to cubic metres in 2024. US$5.2 million to US$7.5 million. For
the U.S. fell 62 percent in volume and 58 Demand in 2026 continues to strengthen, May–June 2026 shipments, Indonesian

percent in value during Q1 2026 following particularly for floor-base plywood and producers have proposed price increases
the implementation of anti-dumping (AD) 10mm renovation products. Indonesian of US$40–100 per cubic metre to offset
and countervailing duties (CVD). exporters raised prices to South Korea rising production costs.
Final determinations are scheduled for by US$60 per cubic metre in April 2026. The EU Deforestation Regulation
July 15, 2026. Indonesia’s market share Taiwan imported 867,000 cubic (EUDR) will take effect on December
in the U.S. deteriorated sharply — from metres of plywood throughout 2025. 30, 2026, requiring Indonesian producers
the top exporter in January to third place Average Indonesian plywood prices to to strengthen geolocation systems and
in February, and nearly absent from the Taiwan were US$210 per cubic metre supply chain traceability. The anticipated
market by March 2026. — significantly below Vietnam (US$327) Indonesia–EU CEPA agreement, expected

Canada and Mexico have become and Malaysia (US$491). in 2027, could significantly reduce tariffs
important stabilisers for North America. Malaysia imported 119,853 tons from for HS 4412 products.
Exports to Canada rose 62 percent in Indonesia during January–March 2026,
volume and 48 percent in value year- making it Indonesia’s third-largest market. Domestic market and cost
on-year in March 2026. Much of the material is used for laminates pressures
Mexico recorded even stronger and secondary panel processing before Indonesia’s economy expanded 5.61 percent
growth, with export volume surging 125 being re-exported to third countries. year-on-year in Q1 2026, supported by

percent and value soaring 140 percent. Indonesia’s plywood exports to the Ramadan and Eid-related consumption
Japan remains the most stable market Middle East during January–March 2026 and government spending programmes.
for Indonesian producers. Average Japanese plunged 52 percent in volume and 67 The USD/IDR exchange rate approaching
imports of Indonesian plywood reached percent in value compared to the same Rp18,000 has improved export competitiveness
60,000–61,000 cubic metres per month period in 2025—falling from US$39.1 from a domestic cost perspective, although
during January–March 2026, up from million to US$13 million. it simultaneously increases the cost of
57,425 cubic metres monthly in 2025. March 2026 marked the lowest point, imported inputs such as chemicals and
Several Indonesian producers have with export volume collapsing 84 percent machinery spare parts.
successfully negotiated higher selling and export value dropping 91.4 percent Domestically, plywood selling prices

prices for upcoming shipments. year-on-year. Crude oil prices exceeding have yet to fully adjust to rising production
Japan’s housing starts in March 2026 US$100 per barrel triggered surging freight costs, leaving producers with increasingly
stood at approximately 63,500 units, costs and vessel shortages. thin margins. Major government projects,
returning to normal monthly levels after Despite the European Commission including the new capital city development
unusually high figures in March 2025. cutting eurozone growth forecasts from (IKN), continue to apply procurement
Plywood inventories in Japan remain 1.3 percent in 2025 to 0.9 percent in prices that many producers consider
sufficient without significant supply 2026, Indonesia’s wood panel exports to economically unsustainable.