Sawlog prices have trended downward throughout the world over
the past two years with the GSPI Index being 14.3% lower in the 3Q/16
than in the 3Q/14
GSPI sawlog price index fell again in the 3Q/16 and was 21% below its
all-time high five years ago, as reported in the Wood Resource
Quarterly. Over the past two years, sawlog prices have fallen far more
in Europe than in North America, where prices have only seen a modest
Global Timber and Wood Products Market Update
- a news brief from Wood Resources International LLC
Global sawlogs prices fell in the 3Q/16
after a temporary increase in the 2Q/16 following an almost two
year-long downward trend. The Global Sawlog Price Index (GSPI) has
fallen by 14.3% in two years and is currently almost 12% below the
ten-year average and 21% down from the all-time high in the second
quarter of 2011.
The biggest price declines quarter-over-quarter occurred in British
Colombia, Eastern Canada, Poland and Sweden. Although most key
lumber-producing countries experienced lower log costs in the 3Q/16,
there were also several regions where prices increased in US dollar
terms, including Brazil, Russia, Norway and New Zealand. The major
reason for the higher prices in this group of countries has been the
strengthening of the currencies relative to the US dollar. In the local
currencies, log price adjustments have been minimal in 2016.
Over the past two years, sawlog prices have fallen the least (just over
five percent) in North America as compared to Latin America and Oceania,
where prices were down by about 14%, and in Europe where prices
currently are more than 20% below 2014 prices, reports the Wood Resource
Quarterly. The biggest price declines on the European continent have
been in Central Europe.
Regional sawlog prices around the world have generally converged during
2015 and 2016 with prices in high-cost regions having declined more than
prices in low-cost regions. Despite these developments, price
discrepancies between the large lumber-producing regions of the world
have been higher in 2016 than they were back in 2000-2005.
Note: The GSPI Price Index is a volume-weighted price index comprising
of average sawlog prices in 20 of the largest sawlog-consuming regions
of the world. The Index tracks prices from the 1Q/95 to the current
quarter and is published each quarter in the WRQ.
Global lumber, sawlog and pulpwood market reporting is included in
the 52-page quarterly publication Wood Resource Quarterly (WRQ). The
report, which was established in 1988 and has subscribers in over 30
countries, tracks sawlog, pulpwood, wood chip, lumber and pellet prices,
trade and market developments in most key regions around the world. To subscribe to the WRQ, please go to www.woodprices.com
Wood Resources International LLC
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