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WRQ: Sawlog prices down globally in Q2 2020


September 8, 2020
By Wood Resources Quarterly

Global Timber Markets

  • Sawlog prices fell in most of the major regions of the world in the 2Q/20. A strengthening U.S. dollar, weaker log demand early in the quarter, and sufficient log supply in some markets contributed to the lower prices.
  • The Global Sawlog Price Index (GSPI) declined four per cent q-o-q to its lowest level in over 10 years, reports the Wood Resource Quarterly.
  • The European Sawlog Price Index (ESPI) has fallen 9.1 per cent in the past year. The largest sawlog price decreases have occurred in Central Europe.
  • Global trade of softwood logs fell by approximately 15 per cent y-o-y during the first half of 2020 as the consumption of lumber dropped throughout the world.

Global Lumber Markets

  • The good news for lumber producers in North America has been the increased usage of wood products in the repair and remodeling sector.
  • U.S. softwood lumber prices have risen spectacularly this year. Market prices for commonly traded grades have more than doubled from May to August.
  • In the 2Q/20, China increased importation of softwood lumber by 42 per cent q-o-q, reaching 7.1 million m3. This large increase followed a quarter where import volumes had fallen to a four-year low.
  • As estimated eight percent of globally traded lumber is shipped to the Middle East/Northern Africa (MENA) region. Following two years of increases, this year saw imports decline.
  • Record high lumber prices in the U.S. and slightly lower costs for sawlogs moved 2Q/20 gross margins for U.S. sawmills to some of the highest levels seen since 2005.

Interested in wood products market information from around the world? The Wood Resource Quarterly (WRQ) is a 70-page report, established in 1988 and has subscribers in over 30 countries. The report tracks prices for sawlog, pulpwood, lumber & pellets worldwide and reports on trade and wood market developments in most key regions around the world. For more insights on the latest international forest product market trends, please go to www.WoodPrices.com

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