Australian Softwood Residual Log Price Index – March 2024

7th June 2024

Sources: ABS, AIP, Margules Groome

Margules Groome’s Australian Softwood Residual Log Price Index measures domestic softwood plantation residual log prices (excluding exports). The index measures the residual log value to the forest owner once harvest and haulage costs are subtracted from mill door log prices. It measures the forest owner’s log margins, or the spread between log prices and logistics (delivery) costs. It should be noted that there is no time lag between the indices, as shown.

The latest edition of the index indicates margins moved slightly up in the March quarter 2024, following stabilisation in the December quarter 2023. Logistics costs decreased in line with moderating fuel prices, which was the main driver. Log prices remain flat to slightly declining over the March quarter 2024, although in reality forest owners would be seeing the peak in March as the delayed price increases from 2023. It is expected that log prices will continue their downward trend during 2024 and into 2025 following timber prices, but they will not fall as much as in past cyclic downturns.

For further information and analysis contact Margules Groome.