Wood raw-material costs for sawmills in North America and Europe eased in the 3Q/22 as demand and prices for lumber fell.

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.

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.

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.

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

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.

Softwood pulpwood saw higher price increases worldwide than hardwood pulpwood, resulting in the widest margin between the two fiber sources in 14 years

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.

The strong lumber markets in North America and Europe resulted in higher sawlog prices in most parts of the world in early 2021.

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