Monday, September 7, 2015
The Global Forest Industry researched and prepares report on 2015 market strategy.
Global Timber Markets
• Swalog prices fell again in the 2Q/15 in most of the 19 regions worldwide that are part of the Global Swalog Price Index (GSPI). The Index is as its lowest level since 2009, and is down 20% from its all-time four years ago.
• The only regions where prices increased in the 2Q were in Northwest Russia and the Interior of British Columbia.
• Global trade of softwood roundwood slowed down towards the end of 2014 and log shipments have continued to be slow during the first half of 2015, with the biggest reduction in imports being in Japan, South Korea and Sweden.
Global Pulpwood Prices
• Wood Fiber costs for the global pulp industry continued their downward trend in the 2Q/15. The Softwood Fiber Price Index (SFPI) was $91.98, which was slightly lower than in the previous quarter.
• The SFPI Index has fallen for four consecutive quarters and was in the 2Q/15 8.4% lower than 2Q/14. The biggest price declines from the 1Q/15 occurred in Brazil, Central Europe and New Zealand.
• The Hardwood Fiber Price Index (HFPI) fell one percent from the 1Q/15 to $88.95/odmt in the 2Q/15. The HFPI has declined for four years and is currently 25% below its all-time high in 2011. Fiber prices fell the most in France, Brazil, Indonesia and Australia.
Global Lumber Markets
• There have been mixed signals in the global lumber market during the 1H/15. of the major lumber-importing countries in the world, China, the US and the United Kingdom have increased importation the most during the first half of 2015.
• Japan and most countries in Europe have imported less lumber this year as compared to 2014.
• Exporting countries that have taken advantage of the scattered bright lights in the international lumber market have included Canada, Finland, Russia and Sweden.
• Although the good news for lumber producers in the Nordic countries has been higher export volumes in 2015, the bad news has been that the average export price has declined by over 20% this year.
• Import volumes to China were 2.4% higher during the first seven months of 2015, with Russian shipments to China having increased 18% and supply from North America and Chile having declined over 10%.
• Both domestic and import prices for softwood lumber in Japan moved slightly lower during the summer months, and were close to their lowest levels in over seven years.