International crisis reduces prices for sawlogs in Europe and North America
Wood industry experts inform that sawlogs prices decrease made softwood lumber markets weaken thus decreasing the demand for sawlogs internationally. This resulted in Global Conifer Sawlogs Price drop down per 26 percents from the level of 2008 in the first quarter of 2009.
As for the North America, in 2009 their sawmills encountered the greatest crisis which touched all its’ regions. In the first quarter of 2009, the lumber production in US was 27 percents lower in comparison with the same period of the year 2008, while sawmills output in the West of US dropped down per 30 percents. This situation resulted in log demand and sawlogs prices drop down, specifically in the US Northwest where prices dropped down per 50 percents during past two years.
As for Canada, the biggest drop down in lumber industry occurred in British Columbia where in the first quarter of 2009 the manufacturing volumes dropped down per 30 percents in comparison with the same period of the year 2008. As for Eastern Canada, the drop down made 19 percents. In March 2009, Canadian sawmills worked for 51 percents of their power only.
News about lumber manufacturing reduction and permanent sawmills closures, circulating during the spring of 2009 made some sawmills companies in eastern provinces of Canada think to cut manufacturing volumes. And, experts report that reduced demand for log in BC has dropped down prices to the level, which have not been detected within past fifteen years.
Sawmills domain in Finland encountered a significant crisis as well. The manufacturing volumes in the first quarter of 2009 dropped down per 25 from the output volumes of the year 2008. Plus, experts forecast further drop down for the rest of 2009 and 2010. They explain such forecasts by expensive prices of sawlog in the country, which will make country sawmill industry less profitable in comparison with the same industry in Russia, Sweden and other countries of Eastern Europe. Wood industry experts also specify that Finland has the most expensive supplies prices among all countries- manufacturers.
Within past year, the experts track the biggest sawlogs prices drop down as well. International conifer sawlog price dropped down per 26 from the indices of the year 2008 and made 76.51USD per m³ in the first quarter of 2009. The WRQ index, counted on the basis of information about sawlogs prices in 19 regions, had been keeping the lowest position since 2004.
