Margules Groome’s quarterly harvest and haulage cost index for Australian plantation operations is based on actual price indexation mechanisms used by industry weighted by volume harvested. The previous index published in June 2020 showed a massive fall in fuel prices, some 29%, due to the impact of the COVID-19 pandemic control measures on fuel demand.
Margules Groome’s Australian Softwood Residual Log Price Index measures domestic softwood plantation residual log prices (excluding exports). The index is a measure of the residual log value to the forest owner once harvest and haulage costs are subtracted from mill door log prices. It is a measure of the forest owners log margins or the spread between log prices and logistics (delivery) costs.
Timber prices have reached new peaks in recent weeks in US. According to Rob de Fégely, Director of Margules Groome “the same could happen here”.
Russia exported 15 million m3 of logs in 2020, accounting for almost 12% of globally traded roundwood. Much of this trade may come to a halt in 2022 when a new law proposed by Russia’s president will ban the export of softwood logs and high-value hardwood logs in January 2022. The Russian government is also considering measures to reduce illegal logging and restrict the export of green lumber.
Since 2019 we have seen a dramatic rise in the price of NZUs in response to various government policies and regulations. Along with the Billion trees incentives, this have driven an expansion in the New Zealand forest estate not seen since the early 1990s.