Local Structural sawn softwood prices strengthened in the March quarter, rising an average 2.6% compared to the December quarter, but up a massive 33.5% compared to the March quarter of 2021.
As the chart here shows for the weighted average price of the Structural grades (MGP10 & 12 – 70&90 35&45), the runaway price leader has been Queensland, where the annual increase was 46.4%, compared with the more modest (barely) Victoria at 32.3%.
The influence of sales from Victoria is felt in the weighted index, with the aggregate number most closely approximating the Victorian price movement.
The table below provides the details.
G1 Structural Untreated <120mm Weighted Average Prices MGP10, MGP12, 70 & 90 x 35, 45 Quarterly Prices AUD$ per m3
Industry pricing is running fairly close to the Construction Price Index produced by the ABS. Structural Timber Index was up 3.6% for the March qtr and 39.2% to the March qtr 2021.
However, to put that in context Michael Bleby reports in the AFR that total construction sector inflation will hit 9.5% over the year to June 2022 and 6% over the year to December 2022. And the reality is other building materials are increasing at a greater rate as can be seen in the broad comparison of timber products to steel products.
