• News

Global log prices continue to lift

The second half of 2022 has seen global log prices continuing to rise in most major markets. At the same time, log removals and trade are continuing to expand, with few signs of downwards pressure evident on a price front at least.

It is relevant to take an ‘around the world’ view of the global log market, starting closest to home.

New Zealand

New Zealand’s sawlog removals were up 2.3% in the September quarter compared with the June quarter, reaching 2.261 million m3. Quarterly removals were up 16.6%, year-on-year, as the chart below shows on the green line. The bars show the quarterly production plus inventory.

Not unexpectedly, the rise in removals coincided with increases in both export and domestic prices.

In the December quarter, at export, Pruned log prices lifted 9.8% to NZDFob194.77/JAS compared with the prior quarter and more than 10% higher than in DQ21.

The quarterly average price of A Grade (-0.9%) and K Grade (-0.7%) saw those logs exported at an average NZDFob147.43/JAS and NZDFob134.96/JAS respectively. Though both softened from the prior quarter, they were still around 18% higher than in DQ21.

New Zealand’s domestic log prices were mainly higher in the December quarter, compared with the September quarter, with different outcomes compared with one year earlier.

The chart and table below display the experience.

Baltic Region

The Baltic region’s log prices were variable in the December quarter, compared with the September quarter. Pine sawlog prices across the region varied with Swedish prices up 0.2% to SEK590/m3, with Finnish pine lifting 4.4% to EUR70.88/m3 and Estonian pine declining 4.0% to 131.29/m3.

As the second chart shows, the differentials are quite wide, when compared in US dollars. The Norwegian price is notable in the second chart, down 2.8% in the December quarter to USD62.26/m3.

North America

Canadian pine prices lifted 3.0% in the December quarter, lifting to USD51.97/m3, However, as the chart shows, that result came after a rollercoaster year, with the DQ22 price 1.9% lower than in DQ21.

 

Posted Date: February 26, 2023

Related Resources

May’s annualised inflation rate a shocker
  • FWPA
  • News

Reported in May, Australia’s annual inflation rate shifted up a gear,…

Housing approvals – finally see some sunshine
  • FWPA
  • News

After declining for the last two years and flattening out in recent mon…

SPOTLIGHT_ WA Where the booms and busts of mining impact the housing sector
  • FWPA
  • News

Western Australia’s economy is driven by the mining industry. That in…