Abstract
Since 2000, in some regions of Japan, agreed transactions and direct shipments to correspond to large-scale demand for domestic log have increased. Consequently, the influence of the log auction market on price formation is said to be declining. To clarify the function of small log auction market within overall log market, this study compares log volume, unit price, and the number of buyer entities during periods of high and stable prices. The analysis is based on data from the Yagi Log Auction Market in the Nantan Region of Kyoto Prefecture, especially market sales slips (April 2019-August 2022) for 4 meter Japanese cedar logs, categorized by diameter class as well as by buyer scale and business type. The results show that market of 4-meter cedar logs at Yagi Log Auction Market can be broadly divided into two segments. The first segment comprises small and medium-diameter logs (diameter 14-28cm), primarily purchased by a limited number of large-scale capital buyers supplying major plywood manufacturers. The second segment comprises large-diameter logs (diameter 30cm and above), mainly purchased by medium-sized sawmills within Kyoto Prefecture, small-scale sawmills in neighboring areas outside the prefecture, and medium-sized distributors within the prefecture. Focusing on the sales function of the Yagi Log Auction, it served diverse market segments differentiated by log diameter, buyer scale, and business type. The market thus fulfilled a commodity distribution function by allocating logs according to demand, accommodating not only to large-scale capital but also to small and medium-scale capital.
