IndustryEdge’s benchmark Australian and New Zealand Export Log Price Index fell throughout 2022. By December, the price index had fallen to USD96.39/m3, lower than it started the year. The combined index value for December trade was 90.70%, meaning the average log price was 9.3% lower than the index starting point in January 2017. Source: IndustryEdge
The index combines and weights softwood log exports from Australia and New Zealand. The index – details of which are available from IndustryEdge’s Wood Market edge online – provides a consistent view of the price being achieved for the region’s logs, for the combined trade from Australia and New Zealand, as well as for each of Australia and New Zealand separately.
IndustryEdge’s ANZ Combined Log Export Price Index:
Jan ’20 – Dec ’22 (INDEX: Jan ’17 = 100)
Australian Softwood Log Exports down 66.1% in 2022
December 2022 was the 28th consecutive month to record declines in Australia’s annual softwood log exports, with the annual volume dropping significantly compared to the year prior.
Across 2022, Australia’s total exports of softwood logs were down a significant 66.1% to total just 0.385 million m3 for the year. India has emerged as a new market, receiving small but regular shipments. Monthly volumes fluctuate rapidly, and in December exports were recorded at 31,917 m3.
For export, softwood logs are differentiated as larger or smaller than 15cm diameter. The distinction between log sizes was previously more noteworthy, but analysis becomes challenging as monthly export volumes are increasingly erratic, as seen in the chart.
Australian Softwood Log Exports by Size: Jan ’17 – Dec ’22 (‘000 m3 and AUDFob/m3)
As displayed in the chart, the larger logs (diameter > 15cm) previously dominated Australia’s exports. From 2021, the trend shifted to favouring exports of the smaller diameter logs, albeit with much diminished volumes. However, in recent months, with the emergence of India as a new destination, the larger diameter logs became dominant again, as volumes of the smaller logs rapidly diminished.
In 2022, exports of the smaller logs totalled 0.070 million m3 or 16.6% of the total, while shipments of larger logs totalled 0.321 million m3 (83.4% of the total).
Differentiation of exports based on their diameter also allows for a level of price analysis. Export prices for the smaller sized logs have remained at a relatively stable price in recent months, moving through a narrow range, while the average price of the larger diameter logs has fluctuated. In December, exports of the smaller logs were recorded at a price of AUD110.42/m3, and the larger diameter logs were recorded at a price of AUD123.42/m3.
Hardwood Log exports down 5.3% in 2022
In December 2022, Australia’s exports totalled 39,816 m3. The average price for December exports was reported at AUDFob177.17/m3, underscoring the significance of smaller dimension plantation log exports from Tasmania. Examined on a full-year basis, across 2022, Hardwood log exports were down 5.3% to total 339,292 m3.
Malaysia is now the key recipient of Australian Hardwood log exports, having replaced China as the dominant market player.
Australian Hardwood Log Exports by State: Jan ’20 – Dec ’22 (‘000 m3 & AUDFob/m3)
The table below shows hardwood log exports by State for the last three months.
In 2022, exports from Tasmania dominated, totalling 286,776 m3, accounting for 91.1% of all Australian exports. Tasmania ships significant volumes to Malaysia, but as the table and chart show, log exports are – month-to-month – a famine or a feast!
For more information www.industryedge.com.au
Australian Hardwood Log Exports by State: Oct ’22 – Dec ’22 (m3)
