Russia exported 15 million m3 of logs in 2020, which accounted for almost 12% of globally traded roundwood.
Lumber producers worldwide saw their profitability go up substantially in 2020
Times have been good for lumber producers in 2020, with profitability rising worldwide. Most countries tracked by the Wood Resource Quarterly have had their highest gross margins in at least two years, with North America standing out as the continent with the most spectacular profit improvements.
WRI Market Insights 2020 - Global Lumber Markets
Lumber trade fell slightly in Europe in 2020. During the first eight months, shipments from the major exporting countries were down 1.2% - the first y-o-y decline in eight years, reports the WRQ.
WRI’s global wood fiber price indices moved up in the 3Q/20, mainly driven by a weaker US dollar
In the 3Q/20, the Global Hardwood Fiber Price Index (HFPI) was up by 1.6% to $81.17/odmt, following a 16-year low in the previous quarter.
The Global Forest Industry in the 3Q/2020
Strong lumber sales and a weakening US dollar moved sawlog prices upward in many markets worldwide in the 3Q/20. The most significant price increases occurred in Western US, Northern and Eastern Europe, and Oceania.
WRI Market Insights: Hardwood Chip Exports from Australia
Australia’s role as a hardwood chip supplier to China and Japan has dramatically diminished in 2020, with shipments having fallen by 34% from last year
Forest Product Exports from Latin America
Forest products exported from Brazil and Chile fell 26% during the first half of 2020, with wood pulp being the product that declined the most
Log Exports from Russia
Softwood log exports from Russia have been in steady decline for the past 15 years and could reach zero in 2022 if President Putin’s new log export ban is implemented.
European Softwood Lumber Exports
European lumber exporters have expanded their sales overseas from 30% to 45% over the past ten years, with Asia receiving a fifth of total exports in 2020, reports the Wood Resource Quarterly
Global Wood Fiber Markets in 2Q/20
WRI’s Hardwood Fiber Price Index fell to a 16-year low in the 2Q/20, driven by lower pulplog prices in Brazil, Russia and Eastern Canada
The Global Forest Industry in the 2Q/2020
Sawlog prices fell in most of the major regions of the world in the 2Q/20. A strengthening US dollar, weaker log demand early in the quarter, and sufficient log supply in some markets contributed to the lower prices.
Log and Lumber Exports from Germany
Germany continued to export logs at record pace in early 2020, with almost 50% of the volume destined for China
Wood Fiber Costs Declined for both Softwood and Hardwood Pulp Producers in 2019 and early 2020
Wood fiber costs fell for many hardwood pulp-producing countries worldwide in the 1Q/20.
The Global Forest Industry in the 1Q/2020
There were relatively few price changes for sawlogs throughout the world in the 1Q/20 despite interruptions in trade and uncertainty in short-term lumber demand in many of the key markets.
The Coronavirus Has Not Stopped the Global Trade of Forest Products
The Coronavirus Epidemic has negatively impacted the supply chains for numerous industry sectors worldwide the past few months.
Forest Products Imports to China
The value of imported forest products to China dropped by 750 million dollars y-o-y during January and February 2020, with the biggest falls on the values of wood pulp and softwood lumber, reports the Wood Resource Quarterly
The Global Forest Industry This Quarter
Global trade of softwood logs in 2019 remained practically unchanged from 2018 at 93 million m3. As much as 45% of globally shipped logs were destined for China.
Sawlog prices fell throughout the world in 2019 with European prices declining the most, resulting in a more competitive sawmilling sector in Central and Northern Europe
Sawlog costs, which often account for more than two-thirds of the production costs, have fallen substantially in Central Europe in 2019 making the sawmilling sector in the region more competitive. The European Sawlog Price Index in the 3Q/19 was 35% lower than its record high in 2011.
Wood raw-material costs for the world’s pulp manufacturers have fallen the past year with the biggest decreases for wood chips and pulplogs occurring in Europe
Softwood pulplog prices fell in the key markets of Europe in the fall of 2019. This price decline contributed to a two-year low of the Softwood Fiber Price Index (SFPI) in the 3Q/19, according to the WRQ. With the hardwood fiber price movements having been mixed the past year, the Hardwood Fiber Price Index (HFPI) has not change much y-o-y.
Profit margins declined faster for sawmills in Finland than in neighboring Sweden during 2018 and 2019, and in the 3Q/19 reached their lowest levels in 15 years
The financial health of the world’s lumber producers was mixed in the 3Q/19. The gross margins fell in Northern Europe, while they improved slightly in Austria, Eastern Russia, Western US, and Western Canada, reports the WRQ. In North America, lumber prices started to flatten out and increased slightly in the fall.
Europe has rapidly become a major supplier of softwood logs to China, while Russia and North America have lost market shares in 2019
China is increasing importation of logs from New Zealand and Europe, while diminishing imports from North America and Russia. As a region, Europe is now the second largest supplier of softwood logs to China behind New Zealand, reports the WRQ.
Global trade of softwood lumber slowed in the 3Q/19 but was still on pace to be higher than in 2018.
Russia, Belarus, Germany and Finland have boosted their lumber sales the most this year, reports the WRQ