Through to mid-2018, European producers who were importing dressed sawn softwood products to Australia raised their prices significantly, even as they grew their market share. According to IndustryEdge, that trend is continuing. Source: Timberbiz
Speaking to Daily Timber News, the managing director of IndustryEdge Tim Woods said that in June 2018, the average import price for dressed grades of sawn softwood were 9% cheaper than a year earlier.
“The price last June was around $600 per cubic metre, and compared to a year before that, it was 9% lower.” Mr Woods said. “But over that year, import volumes had lifted 38%, with most of the increased volume coming from European producers.
“Those importers all lifted their import prices into Australia, by as much as 24%. What that means is that the European importers got more volume and a higher price. That is not all that common, so we have closely examined the entire trade to understand it more fully.”
IndustryEdge’s analysis shows that the Pacific Rim importers – countries like Chile and New Zealand for example – responded to the European imports by decreasing their prices by around 5% over the same period.
The chart displays the details, but it also shows that the effect of the modestly lower prices from Pacific Rim suppliers forced the average import price down, despite the higher European prices.
“What we can see in our more recent analysis is that the price differentials between the surging Europeans and the stable Pacific Rim importers is continuing.” Mr Woods said. “Import growth appears to have stalled, and the average price has picked up a little, but the European importers continue to win the larger price increases, coming off their lower starting prices.”
All of the data, commentary and analysis is available from IndustryEdge through its monthly subscription services. Every month, IndustryEdge publishes Wood Market Edge, Australia’s only forestry and wood products market and trade analysis, and supplies its customers with hundreds of unique data products, advisory and consulting services.
Find out more at www.industryedge.com.au
