In the 1Q/2010, the Global Sawlog Price Index (GSPI) reached US$76.77/m3, the highest level in over a year, according to the Wood Resource Quarterly. Much of the increase has been the result of a weaker US dollar, but sawlog costs have also gone up in local currencies in many markets, including Finland, Sweden, Germany, Latvia, Russia and New Zealand

For Immediate Release

SEATTLE/EWORLDWIRE/June 22, 2010 --- Global conifer sawlog prices have steadily increased for four consecutive quarters in all major world regions. The Global Sawlog Price Index (GSPI), which is based on quarterly conifer sawlog prices in 19 key regions worldwide, increased from US$65.89/m3 in the first quarter of 2009to US$76.77/m3 in the first quarter of 2010, a climb of almost 17 percent, reports the Wood Resource Quarterly. The biggest price increases the past year have occurred in Oceania and Northern Europe, while North America has seen only moderate upward price adjustments.

Sawmills in Central and Northern Europe continue to have the highest wood costs in regions producing softwood lumber. These are also regions that have experienced the biggest price increases the past year. In Sweden and Germany, spruce sawlog prices were 28 percent and 15 percent, respectively, higher in the first quarter of 2010 than in early 2009, according to the Wood Resource Quarterly. Sawlog prices in Latvia and the Czech Republic have also gone up the past 12 months as a result of higher operating rates at the regions sawmills. Early in 2010, log prices were up 43 percent in Latvia and 25 percent in the Czech Republic as compared to the first quarter of 2009.

New Zealand exports of logs and lumber in the first quarter of 2010 were 50 percent and 18 percent higher, respectively, than the same quarter last year. The increase in shipments is practically all thanks to the continued strong demand for most forest products in China. As a result of the strong export market, domestic sawlog prices has gone up about 4 percent from a year ago in the local currency and 38 percent in U.S. dollar terms. Export log prices have increased for four consecutive quarters, and were in the first quarter of 2010 over 50 percent higher than the same quarter in 2009.

Pine sawlog prices have also gone up in Australia by almost 40 percent in U.S. dollar terms, mainly as the result of a strengthening Australia currency. Sawmills in Australia continue to have higher raw-material costs than their competitors in New Zealand.

Because lumber markets have improved, it is likely that sawlog prices in local currencies will continue to increase in many markets in the coming months in the local currencies. This may not necessarily translate into a higher GSPI Index next quarter since the US dollar can be expected to strengthen, particularly against European currencies.

Global timber market reporting is included in the 50-page publication Wood Resource Quarterly (www.woodprices.com). The report, established in 1988 and with readers in over 25 countries, tracks sawlog, pulpwood, lumber and pellet prices in key regions around the world.

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CONTACT:
Hakan Ekstrom
Wood Resources International LLC
10654 NE 204th Pl
Bothell, WA 98011
PHONE. 425-402-8809

SOURCE: Wood Resources International LLC