• Arxada
  • Bell
  • FSC
  • Hin-Tech Manufacturing
  • John Deere
  • Khulani Timber Industries
  • LESH
  • Loadtech Load Cells
  • Ponsse
  • Rance Timbers
  • Sappi
  • SAWPA
  • SSA
  • UCL Sawmill
  • Wood-Mizer
  • Wuhlf

Post: A halt in Russian log exports and reduced wood demand in China contributed to a 20% decline in international softwood log trade in the 1H/22

Global trade of softwood logs plunged by 20% during the first half of 2022 y-o-y. Much of the decline was because of the Russian log export ban that came into effect on January 1, 2022. However, with weakening housing markets worldwide resulting in lower demand for lumber, other countries beyond Russia saw slowing exports of logs throughout the spring and early summer.

North America, Oceania, and Central Europe are all regions where shipments have fallen substantially this year. Out of the top 10 exporting countries in the world, only Norway, Poland, and Sweden increased their exports during the first six months of 2022. Norway increased shipments by almost 20% y-o-y, making them the fourth largest log-exporting country in the world. Most of this relative increase was in sales to Germany and Latvia. However, Sweden still imports the lion’s share of overall log exports from Norway.

Longer term, pulplog exports to Sweden may be negatively affected if the new CTMP pulpmill that the Norwegian forest owner group Viken Skog and Swedish paper company BillerudKorsnäs are considering building coming to fruition (the possible project is currently in a feasibility study phase).

Softwood log imports to China plunged from 23 million m3 in the 1H/21 to only 14 millionm3 during the same period in 2022, reports the Wood Resource Quarterly. Although importation picked up in the 2Q/22, it was still the second-lowest quarterly volume in six years. A slowing economy and uncertainty in the financial markets kept the government and banks from investing in the housing sector, resulting in reduced demand for logs and lumber. Other countries that have reduced roundwood imports in the 1H/22 include Austria (-18% y-o-y), South Korea (-18%), and Germany (-11%).

Global sawlog prices reach record highs

Sawlog prices increased worldwide in the 2Q/22 (in US dollar terms), except for Oceania and Northern Europe. The increase extends the upward trend that started in early 2020, just after prices had fallen to their lowest levels in over a decade.

Over the past two years, log prices have gone up the most in Central Europe (+82%), followed by Southeast Baltic Sea (+58%), North America (+33%), Latin America (+27%),and the Nordic countries (+20%). As a result, the Global Sawlog Price Index (GSPI), representing 20 regions worldwide, has gone up 34% from $68/m3 in the 2Q/20 to $92/m3in the 2Q/22 (see chart). The current index is substantially higher than its ten-year average of $78/m3 and is the highest level on record since it was established in 1995.

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

Contact Information
Wood Resources International LLC, a ResourceWise Company
Hakan Ekstrom, Seattle, USA
info@WoodPrices.com

Source: Wood Resources International

This article is tagged in:
  • Afrequip
  • Latschbacher
  • Alternative Structures Logo
  • Ezigro Seedlings
  • Foresta Timber & Board
  • Husqvarna
  • Kwamahlati Training Services
  • Logmech
  • Merensky
  • Mondi
  • Those who grow alone, die alone: why transformation is strategic for the MTO Group
  • NCT
  • Pangolin
  • Patula Risk
  • Sabie Poles
  • SAFCOL
  • Saw Specialists
  • Stihl
  • Sunshine Seedling Services
  • Treated Timber Products
  • TWK
  • WoodBiz Africa
  • Afrequip
  • Latschbacher
  • Alternative Structures Logo
  • Arxada
  • Bell
  • Ezigro Seedlings
  • Foresta Timber & Board
  • FSC
  • Hin-Tech Manufacturing
  • Husqvarna
  • John Deere
  • Khulani Timber Industries
  • Kwamahlati Training Services
  • LESH
  • Loadtech Load Cells
  • Logmech
  • Merensky
  • Mondi
  • Those who grow alone, die alone: why transformation is strategic for the MTO Group
  • NCT
  • Pangolin
  • Patula Risk
  • Ponsse
  • Rance Timbers
  • Sabie Poles
  • SAFCOL
  • Sappi
  • Saw Specialists
  • SAWPA
  • SSA
  • Stihl
  • Sunshine Seedling Services
  • Treated Timber Products
  • TWK
  • UCL Sawmill
  • Wood-Mizer
  • WoodBiz Africa
  • Wuhlf

Business Directory Registration Enquiry

We are proud to have been marketing businesses large and small for the past 25 years. As our online business directory is strictly industry related only businesses related to the forestry / timber value chain will be listed.
Your Name(Required)
Once you submit your details we will get in touch with you to advise on the way forward.
This field is for validation purposes and should be left unchanged.

Subscribe To Our Newsletter

* indicates required

A halt in Russian log exports and reduced wood demand in China contributed to a 20% decline in international softwood log trade in the 1H/22

Contact Form

Name(Required)