Global Sawlog Price Index Soared 5% to Hit the Highest Level Since Late 2014

SEATTLE (Scrap Monster): According to Wood Resource Quarterly (WRQ), the Global Sawlog Price Index (GSPI) surged higher by more than 5% during the first quarter of 2018. This is when compared with the prior quarter. The Index touched the highest level since the highs recorded in late 2014. Over the past 12 months, the Index has soared by more than 15%. During the entire year 2017, the GSPI had surged nearly 10%. Also, the European Sawlog Price Index (ESPI) touched the highest level in almost three years during early 2018.

The Global Softwood Fiber Price Index (SFPI) was up by 3.4% in Q1 ‘18, when matched with 4Q ’17. Softwood prices recorded significant jump in all regions except Eastern Canada, where chip prices witnessed sharp decline by 16%. Hardwood pulp prices reported modest price increase in Russia, Spain and Finland. The Global Hardwood Fiber price Index (HFPI) touched 3-yeart high during Q1 2018.

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In the U.S., the demand for softwood lumber declined in early 2018. However, lumber production remained buoyant, mainly on account of strong demand from China, despite slowdown in overall demand during the quarter. The U.S. West Coast lumber production surged higher by 9% in Q1 ’18, when compared with the corresponding quarter in 2017. The wood fiber costs in both Canada and the U.S. were slightly higher in Q1 ’18.

Meantime, the U.S. log exports rose 12.5% during the first four months of the current year to total 4.29 million cubic meters, as compared with the previous year. The value of exports surged higher by more than 18% to $913.9 million. The export prices averaged at $213 per cubic meter, 5% higher than the year-before price. The U.S. log exports to China were up by almost 20% to 2.17 million cubic meters in Jan-Apr ’18. The other key export destinations were Canada (1.10 million cubic meters) and Japan (645,140 cubic meters).