The price of locally produced sawn softwood products continued to rise in the December quarter, reflecting the ongoing tight market conditions. The key structural product, MGP10 <120mm, saw Eastcoast prices up 6.7% on the prior quarter and 35.2% compared with the December quarter in 2020. For treated MGP10 <120mm, Eastcoast prices lifted 10.5% on the prior quarter and 37.0% compared with the same quarter in 2020.
Other products significant to the local market experienced similar price movements, as the tables and charts here show for Eastcoast prices.
|
Structural Grades |
Structural Untreated <120 mm MGP10,12 |
Structural Treated <120 mm MGP10,12 |
Structural Untreated Other F4,5,7 |
Structural Treated Other F4,5,7 |
|
2020 Q4 |
$517.24 |
$570.93 |
$367.30 |
$419.81 |
|
2021 Q4 |
$699.53 |
$782.17 |
$459.16 |
$601.85 |
|
QoQ % Change |
+9.7% |
+10.5% |
+2.8% |
+10.3% |
|
Annual % Change |
+35.2% |
+37.0% |
+25.0% |
+43.4% |
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.
|
Non-Structural Grades |
External Treated H3 |
Green Packaging |
Dry Packaging |
|
2020 Q4 |
$784.43 |
$243.21 |
$287.77 |
|
2021 Q4 |
$980.97 |
$316.48 |
$380.25 |
|
QoQ % Change |
+9.4% |
+9.8% |
+8.9% |
|
Annual % Change |
+25.1% |
+30.1% |
+32.1% |
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.
Reflecting the strong market conditions evident since the June quarter of 2020, weighted average prices have been increasing steadily.
The steady increases in Australian market prices stands in direct contrast to other major markets, especially the North American market, where similar demand conditions have been met with extraordinary peaks and troughs as can be seen in the following graph covering the past 2 years.
It’s not entirely clear why these two relatively open markets have arrived at the same end point – higher prices, via different means. A factor may be the market structure in North America where shorter term arrangements with greater reliance on the spot sales is the norm compared to the generally longer term supply arrangements in Australia.
For all that, timber is not the only product exhibiting what are very large price increases. Recent analysis reported in the Australian Financial Review show all states can expect construction costs to increase by a greater amount than they increased in 2021.
That is no surprise, and for the timber supply chain, it might suggest that stable though they may be, further price increases can be anticipated.
