Global Sawlog Price Index Surged to 7-Year Peak
Rubber and Wood | 2021-10-26 21:36:07
The sawlog shortage coupled with robust log demand from region’s sawmills led to sharp rise in sawlog prices during the first half of 2021.
By Paul Ploumis
SEATTLE (Scrap Monster): The surge in log costs across the world sent the Global Sawlog Price Index (GSPI) to highest level in seven years. The Index recorded 10% jump over the prior quarter in Q2 2021. Also, Central and Eastern Europe and Western Canada emerged as the highest cost lumber-producing regions in the world, said the latest report published by the Wood Resources International (WRI).
In 21 out of the 22 regions tracked by the Wood Resources Quarterly (WRQ), softwood sawlog prices registered notable rise. The most significant price jumps were reported in Europe and B.C. regions. The average lumber prices in Eastern and Central Europe were up by almost 60-70% during the second quarter. Incidentally, the European Sawlog Price Index (ESPI) hit an all-time high, rising significantly by 35% over the previous year.
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The log trade and prices in Central Europe continues to be impacted by the availability of damaged timber from the storm and battle infestations of 2017 and 2018. The oversupply of logs has resulted in huge decline in sawlog costs, which have hit their lowest level in more than 20 years.
The sawlog shortage coupled with robust log demand from region’s sawmills led to sharp rise in sawlog prices during the first half of 2021. The average prices in several countries in the region, such as Austria, the Czech Republic and Germany, rose by around 40-50% year-on-year.
