Australian Softwood Residual Log Price Index – March 2024

7th June 2024

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 decrease in line with moderating fuel prices 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 show. 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.

Australian Harvest & Haul Index – March 2024

7th June 2024

Margules Groome’s quarterly harvest and haulage cost index for Australian plantation operations is based on price indexation mechanisms used by the industry, weighted by volume harvested (Figure 1). The index held its flat trajectory in the March quarter 2024 continuing its slightly downward trend from the recent September 2023 peak. Again, lower fuel prices were the key driver, outweighing increases in wages and CPI measures.

New Zealand – Harvest & Haul Cost Index – First Release

21st March 2024

This is the first release of Margules Groome’s biannual harvest and haulage cost index for New Zealand plantation operations (Figure 1). The methodology used is similar to Margules Groome’s approach in Australia where we have published harvest and haulage cost indices for almost a decade. The indices are the sum of different weighted economic indicators. The indicator weightings differ for harvesting and haulage.

Australian Softwood Residual Log Price Index – September 2023

29th November 2023

The latest edition of the index indicates margins have reversed and decreased in the September quarter of 2023. This is solely due to increases in logistics costs mainly caused by increasing fuel prices and wages, despite log prices remaining high. It is expected that log prices will start to come down from 2024 following timber prices after the latter rose ~40% during and after the COVID-19 pandemic. If logistics costs remain high, margins will continue to fall in the near future.

Australian Harvest & Haul Cost Index – September 2023

29th November 2023

Margules Groome’s quarterly harvest and haulage cost index for Australian plantation operations is based on price indexation mechanisms used by industry, weighted by volume harvested (Figure 1). The previous index for June 2023 showed the end of the harvest and haulage cost indices’ downwards trend evident in the first half of 2023. For the September quarter 2023 the indices rose mainly due to the deterioration in the value of the AUD leading to increased fuel prices. Higher than expected wage data and CPI didn’t help either. We now expect the indices to return to the level they were at 12 months ago (December quarter 2022) in the December quarter 2023.