Lumber exports by Russia have fallen for two consecutive quarters, with first quarter 2016 shipments being almost ten percent lower than in the third quarter of 2015. Only China and Japan increased their purchases.

North American exports of wood pellets totaled 6.1 million tons in 2015, which is almost four times as much as in 2010, according to the latest issue of the North American Wood Fiber Review.

SEATTLE, Wash. - The Global Sawlog Price Index (GSPI) continued its two-year decline in the 4Q/15 when the Index fell another 4.8% quarter-over-quarter, as reported in the Wood Resource Quarterly. In just two years, the GSPI has fallen 21.6% both because of a strengthening US dollar and lower demand for lumber in Asia, the MENA countries and in Europe.

SEATTLE, Wash. -  Wood cost is the factor that often determines the competitiveness of a pulp manufacturing plant or region, because it is the largest cost component when producing wood pulp. During the past few years, this cost has varied between 45% and 70% of the total cash cost, depending on product grade and the costs of other components such as chemicals, energy and labor.

Sharp reductions of sawlog prices in Russia, Brazil, Central Europe and Western Canada in 2015 due to weaker lumber demand and currencies reduced trade of logs, reports the Wood Resource Quarterly. European sawlog prices have fallen faster than prices in most other regions.

The European Sawlog Price Index (ESPI) has declined by almost seven percent in 18 months and in the 3Q/15, was at its lowest level in five years, according to the Wood Resource Quarterly. Since early 2014, sawlog prices in Europe have fallen faster than in most other lumber-producing countries around the world.

Sawlog prices have fallen by 15-20% in a majority of the countries manufacturing softwood lumber the past 12 months, according to the Wood Resource Quarterly. In North America, prices were down only 7 percent because of healthy US domestic lumber demand and respectable log export volumes from both the US and Canada.

In July 2015, prices for overseas traded hardwood chip were 14% below their peak four years ago, according to the latest FOEX Chip Price Indexes.

Softwood lumber prices continued to fall in many markets second quarter because of weaker demand and high inventories of lumber throughout the distribution chain, reports the Wood Resource Quarterly. Despite reduced demand for lumber in the U.S., Europe and Asia, lumber production and trade volumes were relatively high during the first half of 2015. The supply/demand imbalance resulted in downward price pressure.

Sawmills in Brazil have become much more competitive in the export market the past few years because of substantially lower sawlog costs. In the 2Q/15, average log prices were down to their lowest levels in ten years, reports the Wood Resource Quarterly. This downward trend may rebound later in 2015 as the export market for lumber is likely to improve.