WRI Market Insights 2022
Global Sawlog Markets
Global sawlog price changes were mixed in the 1Q/22 with q-o-q increases in North
America and Eastern Europe, while prices declined in Central and Northern Europe, reports
the Wood Resource Quarterly. While the price changes from the 4Q/21 to the 1Q/22 have
only been modest, the current price levels are much higher than they were a year ago. For
example, prices from the 1Q/21 to the 1Q/22 surged the most in British Columbia (+58%),
Central Europe (+33%), and the Baltic States (+20%). Even in the US South, where log
prices generally don’t move much, sawlogs costs have increased by almost 10% in 12
months.
The Global Sawlog Price Index (GSPI) fell slightly in the 1Q/22 but was still 11% higher
than in the 1Q/21 and the second highest moment in time in over ten years. On the other
hand, the European Sawlog Price Index (ESPI) increased slightly q-o-q and reached a
new all-time high of €103.54/m3, 27% higher than just a year ago (see chart)
Global trade of softwood logs slowed substantially in early 2022 because of reduced house
construction and remodeling activities in Europe, North America, and Asia. As a result,
worldwide trade fell over 20% y-o-y, with the most significant declines occurring in
imports to China (-42%), India (-32%), South Korea (-14%), and Austria (-14%).
Exporting countries that reduced shipments the most during the first quarter of 2022 were
Russia, New Zealand, Germany, and the Czech Republic. Practically no softwood logs
were exported from Russia in 2022, a result of the Russian log export ban implemented on
January 1, 2022, and the trade sanctions because of the Ukrainian war. The current almost
non-existent trade flow marks a sharp deviation from former quarterly shipments, ranging
between 1-2 million m3 during the past few years. Exports from New Zealand, the world’s
largest log exporter, fell to 4.6 million m3 in the 1Q/22, the lowest level in two years.
Credit to
Wood Resources International LLC, a ResourceWise Company
Hakan Ekstrom, Seattle, USA
info@WoodPrices.com