Baltic region log prices have slumped as much as 24% over the course of 2015, with the trend line for all logs, measured in US Dollars, trending down after rising through much of 2013 and 2014.
The chart below shows the five major countries producing pine logs and their average US Dollar log price, measured at the roadside.
To go straight to the dashboard and take a closer look at the data, click here.
What a difference a few months make. The previous item in this edition of Statistics Count pointed to Europe’s high log prices in 2014 and early 2015. By the end of 2015, the correction was at least partly underway, with lower pine log prices across the board.
Since December 2014, log prices have declined as follows:
- Estonia Pine -18.2%
- Finland Pine -15.1%
- Lithuania Pine -24.0%
- Norway Pine -24.7%
- Swedish Pine -11.6%
There is little doubt that some portion of the decline can be slated home to the appreciation of the US Dollar over 2015, but the underlying demand dynamics that play into exchange rates are also clearly evident. That is, demand in Europe is sluggish at best.
The result is that log prices have fallen and European sawn wood has battled to find a new home outside of Europe, including in Australia.
Just as with pine, so to have spruce and birch sawlog prices declined. However, the latter, as the charts below show, has been far more resilient.
To go straight to the dashboard and take a closer look at the data, click here.
To go straight to the dashboard and take a closer look at the data, click here.
Lower log prices are feeding into lower sawnwood production costs in Europe. That may lead to ongoing strength in sawn softwood imports.
