Figure 1: Australian Softwood Residual Log Price Index September 2024, Nominal
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 continued to move up in the September quarter 2024. Decreasing logistics costs in line with moderating fuel prices were again the main driver. Log prices remain flat to slightly declining over the September quarter 2024. Log prices are expected to continue their downward trend 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.