The European and Canadian softwood lumber industries were the worst affected by the international recession through 2008 and into quarter one of 2009, according to a new report from Wood Markets Group Inc in association with PricewaterhouseCoopers.
The Global Lumber Cost Benchmarking report compares timber and sawmilling costs in 29 producing regions. It says that mills around the world experienced the “worst losses in recent history” in the review period.
“Slumping housing starts in the US had a global ripple effect, culminating in the global financial and economic collapse in Q4 2008,” it states. “The average losses (on an earnings before interest, taxes, depreciation and amortization basis) were US$12/m³ net lumber in 2008, worsening to US$14 in Q1 2009.”
Canada fared worst of all due to its dependence on the US market, with eastern mills returning “horrific” annual average losses of US$37/m³.
European mills “were the next biggest financial losers in 2009 and so far in 2009”.
The most profitable area was the “southern hemisphere”, with South African mills picked out as averaging some of the highest earnings.
Russian companies with their own forest licences enjoyed lowest delivered log costs, with some areas below US$40/m³.
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