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Sawlog prices fell in most of the major regions of the world in the 2Q/20. A strengthening US dollar, weaker log demand early in the quarter, and sufficient log supply in some markets contributed to the lower prices.

The Global Sawlog Price Index (GSPI) declined four percent q-o-q to its lowest level in over ten years, reports the Wood Resource Quarterly.

The European Sawlog Price Index (ESPI) has fallen 9.1% in the past year. The largest sawlog price decreases have occurred in Central Europe.

Global trade of softwood logs fell by approximately 15% y-o-y during the first half of 2020 as the consumption of lumber dropped throughout the world.

Global Pulpwood Markets

Wood raw-material costs fell for most pulp manufacturers throughout the world in the 2Q/20, which reduced WRI’s two fiber price indices for the fifth consecutive quarter. The Hardwood Fiber Price Index (HFPI) dropped to its lowest level since 2004.

The world’s two largest purchasers of wood chips, China and Japan, drastically reduced their chip importation in the 2Q/20, as the COVID-19 epidemic took its toll on pulp and paper consumption in the two countries.

Global Pulp Markets

Prices for hardwood market pulp (HBSK) have remained practically unchanged during the COVID-19 epidemic, despite short-term increases in demand for tissue and other paper hygiene products.

Prices for softwood pulp (NBSK) have inched up slightly this year from a threeyear low in early 2020.

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