Timber prices globally have seen a rollercoaster time in 2021. With each new wave of the virus being reported, the timber production and demand of timber has been disproportionate across the world. This has ultimately created tremendous instability in the construction and timber industries.
The composite softwood timber prices, in the US, for example, rose from $575/MBF in November 2020 and reached $1,500/MBF around 2021 May. While prices dropped to $500/MBF in August, the cost of timber per board foot touched $1,024.30 in December. The situation in other countries was no different.
Talking about sawmills for a moment, those located in North America and Europe have enjoyed profits well above historical norms in the first half of 2021 but the prices fell in the third quarter of the year when the timber prices plunged.
Let’s check out some of the most important happenings in the Global Timber Market currently:
- The Norwegian inventories are at a near-record low as it almost has reached 300 cubic meters per thousand board feet.
- The Finnish inventories are increasing heavily based on the ten years’ average, when compared to the change in stock levels, that too above historical norms.
- As per the Swedish Forest Industries Federation, the South Sweden stock of logs or raw materials is failing by -10%, based on a five-year average (2016-2020).
- The availability of whitewood has increased by 8% and redwood in Sweden is becoming difficult to find with a stock change of -2%.
- Interestingly, the North Inventory is increasing by 20% but if we look at the production levels, it has decreased by 4%. The best explanation for this might be sawmills saving their inventory to sell at a higher price.
- On the other hand, the South Inventory is failing by -10%, but if we look closely, the production levels have increased by 4%. The best explanation for this might be the sawmills’ decision to ship as much inventory as possible.
- The Northern Swedish sawmills’ stocks of Sawlogs, especially in, showed a 22% increase from the previous month.
While these are some of the most important aspects of the market data in the recent past, there are much more interesting aspects across the global timber supply chain including production, inventories, exports, consumption and prices of timber. The Timber Exchange platform provides a paid Market Data Hub section that is constantly updated with the latest news from the global trade world so that you can keep track of the same. To know more, feel free to check out and subscribe to the Timber Exchange Market Data Hub.