Brazil Sawlog Price Increased

Seattle, US: Sawlog prices in Brazil have gone up over the past 12 months after five years in decline and the expectations are that the recent upward trend will continue for the remainder of the year, reports the Wood Resource Quarterly.

Stronger wood product exports from Brazil have resulted in higher demand for logs, which leads to increasing sawlog prices during 2016 and early 2017. Despite the recent price increases, current prices are below the long-term trend lines in the local currency.

In the 1Q/17, pine sawlog prices in Brazil increased in both US dollars and in the Brazilian Real quarter-over-quarter. Over the last 12 months, sawlog prices have gone up by 26 percent.

There are expectations that sawlog prices may continue to go up in the coming months because of improved opportunities for Brazilian exporters of lumber, plywood and value- added products such as doors and mouldings to increase shipments overseas.

During the first quarter of 2017, pine lumber exports reached an all-time high and were equal to the annual export volume just five years ago. The countries that have increased imports of Brazilian lumber the most in the past year are, in descending order, the US, Mexico, China and Saudi Arabia.

 

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