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.
The Netherlands and Japan have increased their market shares of globally traded wood pellets substantially over the past five years
In 2020, wood pellet production in Europe was up 4% y-o-y and was 34% higher than in 2016, according to data just released by the UNECE. Despite this increase, production has not kept up with consumption, resulting in higher net imports to the continent over the past few years.
Higher log demand from sawmills in Europe and North America moved the GSPI sawlog price index to a seven-year high in the 2Q/21
Softwood sawlog prices have gone up in 21 of 22 regions worldwide in the past year, as tracked by the WRQ. By far, the most significant increases have occurred throughout Europe and British Columbia.
Global Wood Fiber Markets
Softwood pulpwood saw higher price increases worldwide than hardwood pulpwood, resulting in the widest margin between the two fiber sources in 14 years
The Global Forest Industry in the 2Q/2021
Softwood sawlog prices have gone up in 21 of 22 WRQ regions worldwide in the past year. By far, the most significant increases have occurred throughout Europe and British Columbia.
Increased demand for softwood lumber in the US and Asia will change the global trade flows of wood in the coming decade
Softwood lumber has been in high demand in the US and Europe throughout 2021. The limited supply resulted in temporary price surges to record high levels during the spring, followed by substantial declines in early summer.
The Global Forest Industry in the 1Q/2021
The strong lumber markets in North America and Europe resulted in higher sawlog prices in most parts of the world in early 2021.