Logs
-
Wood prices in Germany are surprisingly rising this year
The German timber market surprised many forest owners. Instead of falling prices and a mood of crisis, wood prices have risen in the new year. And it doesn't look like a quick turnaround at the moment. This applies to softwood sawlogs as well as to hardwood sawlogs and pulpwood. Demand for spruce sawlogs continued to be very good in March (as in February). After an increase at the turn of the year, prices remained stable at a high level or increased somewhat regionally. Most recently, prices between 115 and 125 euros per cubic meter were paid for spruce A/C 2b+, according to German forest owner associations. At the top, that is another 5 euros more than in the previous month. Some buyers pay an additional bonus for required length formations. The discount for beetle wood was mostly 25 euros. Most recently, prices between 115 and 125 euros per cubic meter were paid for spruce A/C... Continue reading
-
March 23, 2023
Wood prices in Germany are surprisingly rising this year
The German timber market surprised many forest owners. Instead of falling prices and a mood of crisis, wood prices have risen in the new year. And it doesn't look like a quick turnaround at the moment. This applies to softwood sawlogs as well as to hardwood sawlogs and pulpwood. Demand for spruce sawlogs continued to be very good in March (as in February). After an increase at the turn of the year, prices remained stable at a high level or increased somewhat regionally. Most recently, prices between 115 and 125 euros per cubic meter were paid for spruce A/C 2b+, according to German forest owner associations. At the top, that is another 5 euros more than in the previous month. Some buyers pay an additional bonus for required length formations. The discount for beetle wood was mostly 25 euros. Most recently, prices between 115 and 125 euros per cubic meter were paid for spruce A/C... Continue reading
-
March 23, 2023
Canfor to permanently close its Houston sawmill at the end of this month
The last log is set to be processed at Canfor’s mill at its Houston sawmill on March 31, setting in motion a phasing out of the facility’s operations. “The kiln will shut down approximately two weeks later, followed by the planer a week later. All operations are anticipated to be wrapped up by the end of April,” said Canfor official Michelle Ward of what will happen over the next weeks. Canfor released the news it was closing the mill the end of January, citing high logging costs and an uncertain timber supply. At the same time, the company said it wanted to build a new mill more suited to its operations and set June as the date when that decision will be made. Should a new mill be built, the company is forecasting a construction period of two years. “The existing sawmill will largely stay intact until a final decision is made about building a new sawmill on the... Continue reading
-
December 13, 2022
India: Weak log and sawn timber import market
Activity in Gandhidham is slow to recover after the Diwali holidays due to negative sentiment. Log importers and sawmills report fewer enquires from their customers for green sawn timber. The sale price for green sawn timber is now approximately 501-511 and 591-601 INR per CFT for timber from South America and Australian logs respectively. Exports from India fell to 29.78 b USD in October 2022 from 35.45 b in the previous month, the lowest since February 2021. In October last year, exports were 17% higher at 35.73 b USD. This has negatively affected the demand for sawn timber to make export packing pallets. There is an expectation North Indian demand might increase by March 2023 when the summer harvest starts and Indian exports increase. Log shipments from South America have reduced drastically, as unsold logs are still at bonded warehouses in Kandla and being sold at low prices. The... Continue reading
-
December 1, 2022
China: Recovery signs of the softwood import market in Q1/2023
In China, the softwood import market remains weak but there are small hopes for Q1/2023. As of mid-November, daily usage is hovering around 70,000 cubic metres per day across the eastern seaboard for all softwoods, well off the pace of the normal 80- 90,000 we would typically see at this time of year. But a significant positive is the rate of consumption in a nation where COVID lockdowns in large cities remains the order of the day. Currently, New Zealand shows total dominance in the softwood trade. NZ Radiata pine is now in excess of 85% of all China supply with European spruce basically out of the game at current US$CFR levels (log prices landed China). Russia is of course out of the supply top, as is the Pacific North West, and supply out of Uruguay is on weak. This then leaves NZ in a pretty favourable position as and when the market recovers. The very suggestion that it will... Continue reading
-
February 28, 2023
Reduced supply from New Zealand increase price pressure for logs in China
Log demand in China has not increased as much as expected after the Lunar New Year, but there will be significantly reduced log supply from New Zealand due to several severe weather events across the top half of the North Island. This will likely increase price pressure for logs in China. The domestic demand for logs is weakening as building projects are cancelled or delayed. China softwood log inventory is just over 4m m3 and port offtake is still stubbornly sitting at about 60k per day. There are very recent indications port offtake may be increasing but nothing sustained yet. The CFR price for A grade radiata logs in China is in the range 135-140 USD per JASm3 . South American logs are again heading to China with January and February loaded vessels selling for 110-120 USD per JASm3, but March offers are in the high 120’s. European spruce is offered at 160 EUR (168 USD) per... Continue reading
-
December 13, 2022
India: Weak log and sawn timber import market
Activity in Gandhidham is slow to recover after the Diwali holidays due to negative sentiment. Log importers and sawmills report fewer enquires from their customers for green sawn timber. The sale price for green sawn timber is now approximately 501-511 and 591-601 INR per CFT for timber from South America and Australian logs respectively. Exports from India fell to 29.78 b USD in October 2022 from 35.45 b in the previous month, the lowest since February 2021. In October last year, exports were 17% higher at 35.73 b USD. This has negatively affected the demand for sawn timber to make export packing pallets. There is an expectation North Indian demand might increase by March 2023 when the summer harvest starts and Indian exports increase. Log shipments from South America have reduced drastically, as unsold logs are still at bonded warehouses in Kandla and being sold at low prices. The... Continue reading
-
July 3, 2022
China: Log and lumber stocks accumulating at ports
After the 2022 February Spring Festival both log and lumber stocks have been accumulating at ports but, due to slow demand, the inventory of the major wood market dealers has been running high. The ports are overstocked with logs and the stock of logs at Taicang Port have reached a record high of 1.7 million cubic meters, resulting in a sharp drop in both logs and lumber imports compared with last year. According to China Customs, log imports were 18.04 million cubic meters valued at US$3.641 billion, down 30% in volume and 14% in value from January to May 2022. China’s lumber imports fell 7% to 10.78 million cubic meters. In May alone, China’s log imports amounted to 4.23 million cubic meters valued at US$888 million, down 20% in volume and 14% in value. China’s lumber imports declined 11% to 2.26 million cubic meters. Because of heavy rain in the south and high temperature... Continue reading
-
February 28, 2023
Reduced supply from New Zealand increase price pressure for logs in China
Log demand in China has not increased as much as expected after the Lunar New Year, but there will be significantly reduced log supply from New Zealand due to several severe weather events across the top half of the North Island. This will likely increase price pressure for logs in China. The domestic demand for logs is weakening as building projects are cancelled or delayed. China softwood log inventory is just over 4m m3 and port offtake is still stubbornly sitting at about 60k per day. There are very recent indications port offtake may be increasing but nothing sustained yet. The CFR price for A grade radiata logs in China is in the range 135-140 USD per JASm3 . South American logs are again heading to China with January and February loaded vessels selling for 110-120 USD per JASm3, but March offers are in the high 120’s. European spruce is offered at 160 EUR (168 USD) per... Continue reading
-
March 23, 2023
Wood prices in Germany are surprisingly rising this year
The German timber market surprised many forest owners. Instead of falling prices and a mood of crisis, wood prices have risen in the new year. And it doesn't look like a quick turnaround at the moment. This applies to softwood sawlogs as well as to hardwood sawlogs and pulpwood. Demand for spruce sawlogs continued to be very good in March (as in February). After an increase at the turn of the year, prices remained stable at a high level or increased somewhat regionally. Most recently, prices between 115 and 125 euros per cubic meter were paid for spruce A/C 2b+, according to German forest owner associations. At the top, that is another 5 euros more than in the previous month. Some buyers pay an additional bonus for required length formations. The discount for beetle wood was mostly 25 euros. Most recently, prices between 115 and 125 euros per cubic meter were paid for spruce A/C... Continue reading