Locally produced sawn softwood prices continued to stabilise in the first quarter of 2023. Following the simply stunning price increases from mid-2020, most of the main grades spent the latest quarter hovering around the previous quarter’s price.
The structural grades provided something of a mixed bag on pricing, ranging from a decline on the prior quarter of 1.8% (the G6 >120mm Structural Treated MGP grades), to a somewhat challenging increase of 20.3% for the G2 120 mm Structural – Other grade.
As the table below shows, the G2 price was an absolute outlier on a quarter-on-quarter basis and it is possible its price is a moment in time, rather than a continuing experience.
|
Grade |
2022 Q4 |
2023Q1 |
% Change |
|
G1 <120mm Structural MGP Grades |
748.67 |
750.14 |
0.2% |
|
G2-<120mm-Structural-Other-Grades |
454.70 |
546.77 |
20.3% |
|
G3->120mm-Structural-MGP-Grades |
870.44 |
865.78 |
-0.5% |
|
G4-<120mm-Structural Treated-MGP-Grades |
857.24 |
852.77 |
-0.5% |
|
G5-<120mm-Structural Treated-Other-Grades |
651.74 |
640.87 |
-1.7% |
|
G6->120mm-Structural Treated-MGP-Grades |
994.84 |
976.88 |
-1.8% |
|
G7-External-Treated-H3 |
1,046.00 |
1,081.99 |
3.4% |
|
G9-Packaging-Green |
378.41 |
371.48 |
-1.8% |
|
G10-Packaging-Dry |
426.92 |
415.96 |
-2.6% |
The following charts show the main structural products and those not displayed can be accessed from the FWPA Data Dashboard.
Overall, when viewed with the sawn softwood import pricing (see elsewhere in this edition), it is clear that despite falling sales volumes, at least to the end of March, average prices have not deteriorated significantly.
Structural <120 mm
Structural >120 mm
Despite the recent pricing hiatus, annual prices for all grades are higher than a year ago, as the table below shows.
|
Grade |
2022Q1 |
2023Q1 |
% Change |
|
G1 <120mm Structural MGP Grades |
719.87 |
750.14 |
4.2% |
|
G2-<120mm-Structural-Other-Grades |
485.95 |
546.77 |
12.5% |
|
G3->120mm-Structural-MGP-Grades |
824.62 |
865.78 |
5.0% |
|
G4-<120mm-Structural Treated-MGP-Grades |
807.57 |
852.77 |
5.6% |
|
G5-<120mm-Structural Treated-Other-Grades |
627.83 |
640.87 |
2.1% |
|
G6->120mm-Structural Treated-MGP-Grades |
899.89 |
976.88 |
8.6% |
|
G7-External-Treated-H3 |
999.82 |
1081.99 |
8.2% |
|
G9-Packaging-Green |
337.92 |
371.48 |
9.9% |
|
G10-Packaging-Dry |
393.14 |
415.96 |
5.8% |
At the bottom of the tables, the Packaging grades continue to display solid value growth over a relatively long period of time, especially for green packaging products, as the charts here show.
In the context of reduced access to hardwood timber, including that used for pallets and other packaging, the softwood supply and pricing model may be of more than passing interest.
