The global flow of softwood logs from countries with a surplus of wood rawmaterial to regions with tight, or costly log supply, and higher consumption of forest products continued to expand for the third consecutive year in 2018.

Pulpwood prices in North America were 5-10% higher in the 1Q/19 than the 1Q/18, with prices in the US South having increased the most due to challenging weather conditions, as reported by the North American Wood Fiber Review

The US, Canada, Vietnam, Latvia and Russia, accounted for 69% of global exports in 2018, reports the North American Wood Fiber Review

Softwood lumber prices have generally fallen faster than the costs for sawlogs throughout the world in late 2018, resulting in lower margins for the sawmilling sector, according to the WRQ.

WRI’s global wood fiber prices indices reached four-year highs in the 4Q/18 as the costs for wood chips and pulplogs have moved upward in most of the 19 world regions tracked by the Wood Resource Quarterly

China is continuously exploring new sources of softwood logs around the world. Minor log exporters, such as Japan, Poland, Chile and South Africa all expanded their shipments to China in 2018, reports the WRQ.

Global softwood lumber trade fell 7% in 2018, US lumber prices took a roller coaster ride and China’s wood demand slowed in the 2H/18, reports the Wood Resource Quarterly

In early 2018, the Global Sawlog Price Index (GSPI) reached $80.73/m3, its highest level since 2014.

Sawlog prices have increased in the local currency in Brazil in 2018 thanks to higher demand for lumber from the overseas markets, reports the WRQ.

Declining Trade of Softwood Lumber, Plummeting Lumber Prices in the US and Slowing Wood Demand in China were Some of the Biggest International Lumber Developments in the 3Q/18, reports the Wood Resource Quarterly

The 3Q/18 brought development in East Asia, as Chinese imports of hardwood chips reached a record high and Vietnam expanded its market share at Australia's expense, reports the Wood Resource Quarterly

Global Timber Markets

• Softwood sawlog prices declined throughout the world in the 3Q/18.

Wood fiber costs for the pulp industry have trended upward in most regions of North America throughout 2017 and 2018, with the biggest increases occurred in British Columbia and US Northwest, according to the North American Wood Fiber Review

Canada will continue to be a major supplier of softwood lumber to the US in the next decade, with the export volume from the Eastern provinces being forecasted to increase substantially, according to a study by ForestEdge and WRI

Global Timber Markets

• The Global Sawlog Price Index (GSPI) fell 1.4% in the 2Q/18.

A surge in lumber prices and modest increases in sawlog costs have resulted in record profits for many lumber companies in North America and Europe in 2018