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

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.

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.

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