Over the year-ended August 2023, sawn softwood imports totalled 607,417 m3, down 36.5% on the year prior. Imports are beginning to stabilise and look likely to settle somewhere close to 42,000 m3 on average per month, resulting in annual imports falling to an expected 0.5 million m3 before mid-2024. Source: IndustryEdge
The latest Sawnwood Market and Trade Report from IndustryEdge’s Wood Market Edge online provides the details, including the edited extract set out below.
Underscoring how rapidly the market situation evolved for imports, despite the annual decline, rolling quarterly imports to the end of August (122,746 m3) were 12.5% lower than for the quarter-ended May (140,326 m3).
The total weighted average import price in August was AUDFob660/m3 down 22.2% on a year earlier and 3.1% lower than in July 2023. The headline chart below, provides the details and shows that unlike prices, import volumes have been declining rapidly, as excessive inventory and the slow pace of housing construction continue to take their toll.
Australian Sawn Softwood Imports: Jan ’21 – Aug ‘23 (m3 & AUDFob/m3)
The second chart provides an alternate view of the same data, placing both free-on-board and ‘landed’ or costs, insurance and freight (Cif) prices in comparison to the annual import volume.
It demonstrates shipping and freight costs have been in decline and the differential between them has slipped to AUD143/m3, still well above the five-year average of AUD113/m3. The implication is there may still be opportunities for prices to deteriorate on a delivered basis if freight costs are reigned in further over the second half of 2023.
Australian Sawn Softwood Imports: Jan ’21 – Aug ‘23 (m3 & AUDFob/m3 and AUDCif/m3)
Among the major import grades, a 23.4% decline in Untreated Dressed Pine imports (excluding Radiata Pine and Weatherboards), has seen imports slide to an annualised 131,556 m3, with a weighted average import price of AUDFob456.21/m3 in July 2023, while the landed price was AUDCif637/m3. The freight differential of AUD181/m3 demonstrates most imports are shipped from Europe.
Subscribers will note the data for this analysis has been prepared using the Australian Sawn Softwood Import Analysis Package file, available under the ‘Sawnwood’ heading in Wood Market Edge online. Click here to get the data.
Untreated Dressed Pine Sawnwood Imports: Jan ’21 – Aug ’23 (m3 & AUDFob/m3 and AUDCif/m3)
Although imports have fallen a huge 59% over the last year, Treated, Dressed Fir and Spruce continues to be the largest single import grade or line. Year-ended August, imports totalled 154,181, ending the year priced at AUDFob481/m3 or AUDCif587/m3 on a landed basis. The differential between the two prices shows that freight and insurance costs accounted for AUD106/m3 in August 2023, AUD12/m3 lower than the long-term average.
Dressed, Treated Fir & Spruce Sawnwood Imports: Jan ’21 – Aug ’23 (m3 & AUDFob/m3 and AUDCif/m3)
Despite declining over the last year, imports of Treated Radiata Pine remains at elevated levels compared with imports prior to and during the early phase of the pandemic. Year-ended August, imports totalled 134,232 m3, ending the year priced at AUDFob1,031/m3 or AUDCif1,130/m3 on a landed basis. The differential between the two prices shows that freight and insurance costs accounted for AUD99/m3 in August 2023, just AUD2.39/m3 lower than the long-term average.
New Zealand is the main supplier.
For more information visit: www.industryedge.com.au
Dressed, Treated Radiata Pine Sawnwood Imports: Jan ’21 – Aug ’23 (m3 & AUDFob/m3 and AUDCif/m3)
