No change in global margins
By Wood Markets
Aug 30, 2013 - In 2012, average global sawmilling margins (on an EBITDA basis) were US$5/m3net at "average" sawmills, widening in Q1/13 to US$20/m3($32/Mbf, nominal).
The highest delivered log costs in 2012 were seen in China, where mills use imported and domestic logs that continue to rise in price. Central Europe was next (led by Germany, Austria and the Czech Republic), at almost three times the average cost of logs in Western Canada. Seven of the 11 lowest-cost "average" mills were in Europe, but China had by far the lowest-cost sawmills. Brazil and Chile also had low labour costs, allowing for relatively low sawmilling costs, while the highest were in Australia and South Africa.
European lumber exporters thinking of entering the U.S. market generally seek a sustained presence. Some European sawmillers indicate that sustained prices of well over US$500/Mbf (nominal, east coast) would be needed before they would enter the U.S. market in significant volumes.
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