Despite positive signs, sawlog prices in Brazil have gone down

10-08-2017

After decreasing for five years, prices of sawlogs in Brazil have increased over the past year, and they are expected to continue rising for the rest of the year, according to the Wood Resource Quarterly.

According to Wood Resource Quarterly, Brazil’s exports of wood products have grown stronger, and consequently, demand for logs increased, boosting the prices for sawlogs in turn for 2016 and 2017. But in spite of the upward price bumps, the current prices are still below the long-term trend lines in Brazil’s local currency.

In the first quarter of 2017, the price for pine sawlogs went up in both US dollars and Brazilian Real quarter-over-quarter. According to Wood Resource Quarterly, over the last years, prices of sawlogs rose by 26 per cent, mostly due to the strengthening Real, through smaller upward price adjustments in the local currency that can be attributed to higher labour and energy costs, and the upward price bump can be seen reflected in the downward price trend observed from 2011 to 2015.

Exports of pine lumber have also hit an all-time high, equalling the annual export volume last seen five years ago. Nations that have increased their imports of Brazilian lumber the most are China, Mexico, Saudi Arabia, and the United States (U.S.).

According to the American Journal of Transportation, sawlog prices are expected to continue rising over the coming months due to the improved opportunities that Brazilian exporters of lumber, plywood, and doors and mouldings have to increase their shipments overseas.

 

Sources: America Journal of Transportation, Wood Resource Quarterly