Global Sawlog Prices Continue Rising into 2018
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Sawlog prices were up in most regions of the world in the 3Q/17, according to a report this week by the Wood Resources Quarterly (WRQ), Seattle, Wash., USA. The price increases from the 2Q/17 were generally smaller in local currencies than in U.S. dollar terms because of the weakening U.S. dollar. In U.S. dollar terms, quarter-to-quarter prices were up the most in Europe (+7.9%) and Oceania (+6.1%), while the upward price adjustments were more modest in North America (+2.8%) and Latin America (+2.2%).
The Global Sawlog Price Index (GSPI) has gone up for three consecutive quarters to reach $75.69/cubic meter in the 3Q/17. The increase of 5.1% from the 2Q/17 was the biggest quarter-to-quarter jump since 2010. In addition, the GSPI is at a three-year high because of the recent strengthening of sawlog prices throughout the world. With the outlook for continued strong demand for lumber in key markets and higher consumption of sawlogs, it is likely that the price index will continue upward in the coming quarters.
The Euro-based European Sawlog Price Index (ESPI-€) also trended upward the past year, but at a slower pace than the GSPI. The biggest price increases in Euro terms during the past year have occurred in Eastern and Central Europe, particularly in Poland, Austria, and Germany, while prices only saw modest rises in the Nordic countries.
Note: the GSPI and ESPI price indices are volume-weighted indices comprised of sawlog prices for log grades commonly used for manufacturing lumber into construction and better grade lumber in the largest log-consuming countries in the world and Europe, respectively. The indices tracks prices from the 1Q/95 to the current quarter and are published each quarter in the WRQ.
