Global Sawlog Price Index Recorded Fifth Straight Quarter of Decline

The prices witnessed marginal adjustments in major log markets in North America over the past one year.

SEATTLE (Scrap Monster):  The Wood Resources Quarterly (WRQ) has reported decline in global as well as European sawlog price indices over the past couple of years. This is on the heels of declining sawlog prices in majority of countries.

The Global Sawlog Price Index (GSPI) recorded fifth consecutive quarter of decline in Q2 2019. The index touched the lowest level in two years during the quarter. All continents across the globe saw drop in log prices, with Europe reporting the biggest decline. The log demand-supply balance and trade flow across Central and Northern Europe were affected by plentiful supply from storm-damaged and beetle-infested forests in the region.

ALSO READ: Global Softwood Lumber Trade Hit Second Highest Level in History

The prices witnessed marginal adjustments in major log markets in North America over the past one year. However, the U.S. Northwest region bucked the trend, with sawlog prices declining sharply from the record levels in 2018 to levels close to 25-year average. Douglas-fir sawlog prices declined nearly 20% over the prior quarter, whereas the hemlock log prices fell substantially by almost 25%.

Meantime, the European Sawlog Price Index (ESPI) hit nine-year low, registering 3.7% quarter-on-quarter decline. The average sawlog prices in Austria and Germany have dipped by almost one-fifth over the past two years. The average spruce sawlog price in Germany and Australia registered declines by 22% and 17% respectively, upon comparison with Q2 2017. Log prices continued to remain subdued in other major producing countries including Australia, Brazil and Chile.

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