Prices for Pine and Eucalyptus Pulplogs in Brazil Rose Slightly in 2018 Due to Strong Export Sales of Softwood Lumber
Eucalyptus pulplogs have gone up three percent from the third quarter of 2017 to the third quarter of 2018, while average prices for softwood pulplogs have increased 1.3% during the same period.
Jan. 18, 2019 - Softwood lumber exports from Brazil have increased 36% from January through November 2018 as compared to the same period in 2017, according to Wood Resource Quarterly (WRQ). In US dollar terms, the export price has only gone up a modest three percent from the third quarter of 2017 to the third quarter of 2018. However, due to the weakening Brazilian Real, there has been a 26% increase in the export price in the local currency over the past year. This development has led sawmills to expand export sales, which has resulted in higher demand for sawlogs. As a consequence, there has been continued upward pressure on log prices, which reached a new all-time high in the third quarter of 2018. This increase is a continuation of a trend that started in 2013 when sawlog prices averaged BRL125/m3.
In US dollar terms, Brazilian sawlog prices have declined the past year because of the strengthening dollar and in the third quarter of 2018 were at their lowest levels in over two years.
Despite excess regional supplies of both pine and eucalyptus pulplog, prices in the local currency increased slightly in 2018. Eucalyptus pulplogs have gone up three percent from the third quarter of 2017 to the third quarter of 2018, while average prices for softwood pulplogs have increased 1.3% during the same period, WRQ reported. However, in the Southern region of Brazil, prices for pine pulplogs have declined somewhat, which was an unwelcome development for the many small independent land owners and timberland investors in the region.
The limited price improvements over the past few years, oversupply of pine pulplogs, and potentially more attractive land-use alternatives in the agricultural sector, have led some landowners to choose to plant agricultural crops rather than trees. There is a concern that if many current owners of forest plantations choose this path, there will be insufficient supply of wood raw-material for the forest industry in the southern states in the future.
Wood Resource Quarterly is published by Wood Resources International, an internationally recognized forest industry-consulting firm. For further information visit: www.woodprices.com.
SOURCE: Wood Resources International LLC