European Sawlog Price at its lowest in six years in 3Q/16

The European Sawlog Price Index reached its lowest level in six years in the 3Q/16 because of lower lumber demand and reduced prices in both domestic and export markets, reports the Wood Resource Quarterly 

Over the past two years, sawlog prices have fallen more in Europe than in any other region of the world. In the 3Q/16, the European Sawlog Price Index (ESPI-€) was down a modest 0.5% from the previous quarter to €83.40/m3. The Index has trended downward for the past few years and in 2016 has been at its lowest level since 2010. Much of the recent decline has been the result of reduced demand for lumber in some markets and generally lower lumber prices in both domestic and export markets.
Although the ESPI-€ Index has been in a declining mode since early 2014, the current price index is still 10% higher than the average for the period 1999-2016.

During the past two years, sawlog prices (in Euro terms), have fallen the most in Finland, Norway, Poland, Austria and Estonia, all countries that are major exporters of softwood logs or lumber.
The slowing demand for lumber in Europe has also resulted in a decline in log trade on the continent. WRI estimates that total trade of softwood logs will be down about 12% in 2016 as compared to the previous year and that shipments will be at their lowest level since the global financial crisis in 2008 and 2009. Some of the biggest declines in trade this year has been in exports from Norway, France, Ukraine and Latvia.     


SourceWood Resources International LLC & Global Wood