Global Log Demand Surged Significantly in H2 2020

SEATTLE (Scrap Monster): The Wood Resources International’s (WRI) global and European sawlog price indices surged higher by 8% over the previous quarter in the last quarter of 2020. The demand for logs was up in North America and Europe. Also, worldwide log prices witnessed notable surge.

According to WRI, the log demand witnessed significant improvement in H2 2020, mainly in countries like the U.S., the UK, South Korea and the MENA region. Meantime, the European lumber market remained essentially flat, with demand recording small changes. The lumber exports from the region continued to remain strong.

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The record lumber prices led to higher shipments from the U.S. The shipments to major lumber export markets such as Germany, Sweden, Romania, and Austria increased in Q4 year-on-year.

The Global Sawlog Price Index (GSPI) soared to hit $74.66 per m3, which is the highest level in almost two years. The most notable price increases were recorded by Western US, Western Canada, Austria, Germany, and Estonia. Northwest Russia and Poland were the only regions to see quarter-on-quarter price declines. Meantime, the European Sawlog Price Index (ESPI) surged higher from a 11-year low in Q3 2020 to hit €76.13/m3 in fourth quarter.

Russia, with total log exports of 15 million m3 in 2020, accounted for nearly 12% of roundwood traded across the world.