Dec 16, 2005. /Lesprom Network/. Domestic log prices in Japan continued to rise due to higher FOB prices and ocean freight as well as a dropping yen. In late November, Sarawak meranti regular prices topped JPY 7 000 ($60.2) per koku CIF (3.6 koku equal one cubic meter), the highest level in almost eight years. This is JPY 100-200 ($0.85-1.7) higher than a month ago and JPY 1 100-1 200 ($9.45-10.3) higher than early this year. Market prices for meranti small are JPY 6 400-6 500 ($55-55.9) and for kapur are JPY 7 700-7 800 ($66.18-67.04) per koku, up JPY 200 ($1.7) from last month. Domestic plywood mills have tried to reduce costs by mixing low cost small logs or increasing Sabah logs, which have better veneer recovery ratios, but this turned out to be unsuccessful. Plywood mills therefore started to raise sales prices from early fall and further hikes are expected soon. The monsoon rains in Southeast Asian production areas are expected to cause further log production reductions. The strong demand for logs by local plywood mills in Malaysia and by other countries also contribute to keep log export prices firm.