Most of the world’s wood chip trade is that of hardwood chips in the Pacific Rim. In 2022, the global wood chip trade accounted for about 42 million bdmt, of which about two-thirds were hardwood chips destined for pulpmills in China and Japan.
Dwindling softwood log supply options will force China to expand lumber imports in the future
As late as 2019, China imported almost 100 million m3 rwe (roundwood equivalents) of softwood logs and lumber to meet the growing demand for forest products in the domestic market.
Log trade in the Baltic Sea region has declined for two reasons: Russia’s invasion of Ukraine, and as a result of investments in forest production capacity in the Baltic States
The two largest log-trading regions in Europe are Central Europe (where Austria, Czech Republic, and Germany are the major importers) and Northern Europe (Finland and Sweden are the two log-importing countries).
Demand for lumber was down worldwide in the 4Q/22, causing sawlog prices to drop from record highs
Increased interest rates, higher inflation, and market uncertainty regarding a possible recession in 2023 resulted in reduced housing starts and decreased renovations in the second half of 2022.
The Global Hardwood Fiber Price Index has increased 27% over the past two years, twice as fast as the Softwood Fiber Price Index
Wood chip and pulplog prices rose substantially in most countries over the past year in the local currencies.
Competitive wood fiber costs continue to attract investments in hardwood pulp capacity in Brazil
The expansion of the pulp industry in Brazil has a remarkable history.
The Global Forest Industry in the 4Q/2022
Demand for lumber was down worldwide in the 4Q/22, relaxing prices for sawlogs down from record highs.
Imports of wood chips and logs to Finland from Russia fell from an all-time high in 2020 to zero in late 2022
Finnish pulpmills and sawmills have long been dependent on imported wood raw-material to meet their wood fiber needs.
The Global Sawlog Price Index fell late in 2022 following a 40% gain over two years
Wood raw-material costs for sawmills in North America and Europe eased in the 3Q/22 as demand and prices for lumber fell.
The costs of wood fiber for pulp manufacturing have trended upward worldwide for over two years
Prices for pulplogs and wood chips have gone up in practically all markets worldwide in the 3Q/22.
The Global Forest Industry in the 3Q/2022
Wood raw-material costs for sawmills in North America and Europe eased in the 3Q/22 as demand and prices for lumber fell.
Tight wood fiber supply and record high pulp prices have pushed the worldwide costs for pulplogs and wood chips upward 10% the past year
Wood fiber prices continued their two-year upward trend in the 2Q/22, with hardwood increasing faster than softwood.
Wood fiber costs for pulp manufacturing have gone up worldwide in 2022 as fiber demand remained strong and supply tightened
Prices for pulplogs and wood chips increased q-o-q in early 2022 in all 19 regions worldwide as tracked by the Wood Resource Quarterly (WRQ).
The Global Forest Industry in the 2Q/2022
A halt in Russian log exports and reduced wood demand in China contributed to a 20% decline in international softwood log trade in the 1H/22.
Global Wood Pellet Trade Reached Record-High 29 Million Tons in 2021
The world's thirst for renewable energy continues, and demand for wood pellets—mostly made from sawmill byproducts—is increasing. As a result, the total global wood pellet trade in 2021 was up 9% YoY to 29 million tons, 50% higher than in 2017.
The war in Ukraine will tighten lumber markets both short and long term, particularly in Europe but also in China and the US
One immediate impact of the war in Ukraine and the sanctions by Western countries has been a dramatic reduction in exports of forest products from Russia, Belarus, and Ukraine.
Sanctions against Russian exports will permanently alter the global trade of forest products
Lumber trade flows changed almost instantly when Russia invaded Ukraine in late February. Trade sanctions and restrictions in financial transactions by Europe, North America, and major markets in Asia halted shipments from Russia and Belarus.
Trade of logs and lumber in Europe will change dramatically in the coming years
Trade of logs and lumber in Europe will change dramatically in the coming years as timber harvests in Central Europe decline and the sanctions against Russia result in a plunge in forest products imports
Russia’s invasion of Ukraine will likely halt planned investments in the Russian forest industry and reduce forest products export
Russia’s invasion of Ukraine is likely to impact global trade in the coming months. Increased sanctions against trading with Russia and difficulty with financial transactions will probably interrupt and re-direct shipments of forest products throughout the world.
Wood fiber costs increased for softwood pulp producers worldwide in 2021 but decreased for manufacturers of hardwood pulp
Wood fiber costs for pulp manufacturers have gone up in practically all countries covered by the WRQ over the past year. In the 3Q/21, the Softwood Fiber Price Index (SFPI) was at its highest level since 2014, 8.1% higher than the 3Q/20.
Global Log Markets
The large softwood timber surplus in the US South is likely to diminish over the next decade, resulting in regional increases in sawlog prices, while prices for pulpwood will remain unchanged
Log costs for sawmills in the US South are among the lowest in the world and have been consistently low for over a decade
STOCKHOLM, Dec. 13, 2021 -- The forest industry in the US South has attracted increased interest and investment over the past few years.