Sawlog prices trended downward worldwide in past 12 months with the Global Sawlog Price Index (GSPI) falling 11% from the second quarter of 2011 to the second quarter of 2012, according to the Wood Resource Quarterly. The Index is based on sawlog prices in 20 regions around the world. Source: Wood Resources International
The GSPI was US$82.90 per cubic meter in the second quarter of 2012, which was 11.5% lower than in the same time the previous year. Sawlog prices have declined the most in Europe.
The GSPI was down for the fourth consecutive quarter to $82.90 per cubic meter.
Log prices were down in practically all regions tracked by WRQ in both the local currencies and in US dollars. The only exceptions were in Western US and
British Columbia, two regions that have been benefiting from strong exports of lumber to Asia and higher demand for lumber in the US market the past six months.
Log prices in the second quarter in 2012 fell the most in Brazil, Japan, the Czech Republic, Sweden and Russia.
Consumption of lumber in Europe has been in decline as a result of the continued financial crises in a number of European countries. As a consequence, demand for
sawlogs and log prices have fallen steadily for the past 12 months.
The price declines were the largest in the Nordic countries where log prices have come down 18% the past year.
The good news for the region’s sawmills is that log prices have fallen more steeply than lumber prices.
Despite having moved up slightly the past few months, lumber prices are still well below the average for the past three years.
