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 stabilised in the December quarter 2023. As with the last edition, the reason was logistics costs, as fuel prices decreased slightly. Log prices have remained high but have plateaued. It is expected that log prices will start to come down during 2024 following timber prices. If logistics costs remain high, margins will continue to fall.
For further information and analysis contact Margules Groome.