The European Sawlog Price Index reached its lowest level in six years in the 3Q/16 because of lower lumber demand and reduced prices
demand and prices for softwood lumber, together with reduced log trade
have resulted in lower sawlog prices in Europe over the past two years
with the ESPI sawlog prices index reaching its lowest point since 2010,
according to the Wood Resource Quarterly.
Global Timber and Wood Products Market Update- a news brief from Wood Resources International LLC
The European Sawlog Price Index reached its lowest level in six
years in the 3Q/16 because of lower lumber demand and reduced prices in
both domestic and export markets, reports the Wood Resource Quarterly
Over the past two years, sawlog prices
have fallen more in Europe than in any other region of the world. In the
3Q/16, the European Sawlog Price Index (ESPI-€) was down a modest 0.5%
from the previous quarter to €83.40/m3. The Index has trended downward
for the past few years and in 2016 has been at its lowest level since
2010. Much of the recent decline has been the result of reduced demand
for lumber in some markets and generally lower lumber prices in both
domestic and export markets.
Although the ESPI-€ Index has been in a declining mode since early 2014,
the current price index is still 10% higher than the average for the
period 1999-2016 (see chart).
During the past two years, sawlog prices (in Euro terms), have fallen
the most in Finland, Norway, Poland, Austria and Estonia, all countries
that are major exporters of softwood logs or lumber.
The slowing demand for lumber in Europe has also resulted in a decline
in log trade on the continent. WRI estimates that total trade of
softwood logs will be down about 12% in 2016 as compared to the previous
year and that shipments will be at their lowest level since the global
financial crisis in 2008 and 2009. Some of the biggest declines in trade
this year has been in exports from Norway, France, Ukraine and Latvia.
The ESPI price index is a volume-weighted index
comprising of sawlog prices for log grades commonly used for
manufacturing lumber into construction and better grades lumber in the
largest log-consuming countries in Europe. The Index tracks prices from
the 1Q/95 to the current quarter and is published each quarter in the
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, 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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