Posts by Hakan Ekstrom
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. As a result, trade with Russia will likely decline, impacting long-established international trade flows of forest products. Countries…
Read MoreSawlog Supply in the US South is Likely to Tighten but a Surplus of Small Logs and Residues will Create Long-Term Opportunities for the Expansion of the Pulp and Wood Pellet Sectors
The US South’s softwood industry has enormous potential for a variety of reasons. The region has a significant forest resource with room for expansion, low and stable wood costs, and a thriving lumber and pellet manufacturing sector. The local forest industry is set to grow in the coming years and play a more prominent role…
Read MoreThe 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
The US South softwood timber resource is significant, cost-competitive, and increasingly crucial for the global supply of several forest products. In 2020, an estimated 12% of the world’s conifer timber harvest was in this region. A large softwood timber inventory has built up in the southern US over the past 15 years. In 2000, timber…
Read MoreSawmills in the Nordic Countries Have Some of the Lowest Sawlog Costs Worldwide
Record-high lumber prices in North America and Europe have moved both demand and sawlog values to some of the highest levels seen since WRQ started tracking sawlog markets in 1995. In their local currencies, log prices in the Nordic countries, the Baltic States, Central Europe, Western Canada, and the Western US were at all-time highs…
Read MoreWood 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. The most significant price increases have occurred in Western Canada, US South, Latin…
Read MoreHigher log demand from sawmills in Europe and North America moved the GSPI Sawlog Price Index to a seven-year high
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. In the 2Q/21, average sawlog prices were 60-70% higher y-o-y in Eastern and Central Europe, driven by the increased competition for…
Read MorePrices for softwood fiber increased faster than hardwood fiber in the 2Q/21
Softwood fiber costs were generally higher worldwide in the 2Q/21 than in the previous quarter despite an increase in the supply of residuals from sawmills in Europe and North America. Practically all regions covered by the WRQ experienced q-o-q prices increases in the range of 1-5%. The major exception was British Columbia, where wood chip…
Read MoreIncreased 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 outlook for lumber demand is likely to be strong worldwide in the coming decade in most world regions,…
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