Sawmills in the Nordic countries had some of the lowest sawlog costs globally in the 3Q/21
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 high in the 3Q/21.
Sawmills in Latvia, Estonia, the Czech Republic, Austria, and Germany have become some of the highest-cost lumber manufacturers globally after sawlog costs surged by 60% to 95% in one year, reports the WRQ. Log costs have also gone up in the principal lumber export countries Finland and Sweden, but more modestly than the rest of the continent. In the 3Q/21, sawmills in Norway and Sweden had the lowest wood costs in Europe.
The European Sawlog Price Index (ESPI) reached a new all-time high in the 3Q/21 as sawlog prices climbed throughout the continent. The index, which tracks sawlog prices in nine countries, has surged by almost 50% in one year and is substantially higher than its 23-year average of €78/m3. The recent price hikes have varied by subregion, with prices in Central European rising more than in Northern Europe. In the 3Q/20, sawlog prices were practically the same in all the significant sub-regions of Europe, averaging close to €70/m3. However, this year prices have diverged, with the Nordic prices increasing only 15% while log costs in the Baltic States and Central Europe jumped more than four times as much.
Softwood sawlog price changes in European sub-regions from the 3Q/20 to the 3Q/21 were as follows (Source: WRQ):
Region Change y/y (%)
Nordic +16%
Baltic States +62%
Central +79%
ESPI +47%
European sawlog prices have surged in the past year as lumber prices reached record levels and sawmills paid almost anything to ensure they would be able to run at full capacity. However, with lumber prices coming down from their record levels during the summer and sawmill production catching up with demand, log markets have stabilized, and sawlog prices have leveled off and even declined in some regions (e.g., Central Europe) during the fall and early winter.
Are you interested in the worldwide wood products market information? The Wood Resource Quarterly (WRQ) is a 75-page quarterly report established in 1988 and has subscribers in over 30 countries. The publication tracks prices for sawlog, pulpwood, lumber, and pellets and reports on trade and wood market developments in most key regions worldwide. For more insights on the latest international forest product market trends, please go to www.WoodPrices.com
Wood Resources International LLC
Hakan Ekstrom
Wood Resources International LLC (WRI), an internationally recognized forest industry-consulting firm established in 1987, publishes a global quarterly wood market report and have subscribers in over 30 countries. The Wood Resource Quarterly, established in 1988, is a 70-page market report and includes prices and trade or sawlog, pulpwood, wood chips, lumber and pellets, and market commentary to developments in global timber, biomass and forest industry.
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