Softwood Sawlog Prices In Brazil In 4Q/09 Were Down 11% From Their Peak In 2008 Because Of Weak Export Lumber Markets, Reports Wood Resource Quarterly

Seattle, USA. Softwood sawlog prices in Brazil haveDespite the recent gloomy developments in the
gone through an unprecedented roller-coaster rideBrazilian lumber industry, there is much confidence
the past seven years, a ride that for a majority ofwithin the sector that over the next five years, both
the period has been quite beneficial to landownersthe export and domestic markets will improve. In
and timberland investors.2014, the World Cup in soccer will take place in Brazil,
Pine sawlog prices increased almost fourfold (in USand 12 host cities (with a total population of 34 million
dollar terms) from the 1Q/03 through early 2008,people) will need to undertake major investments in
according to the Wood Resource Quarterly. Theinfrastructure, new construction of stadiums and
continuous upward price trend lasted for six years,remodeling of hotels and other accommodation
but was interrupted in late 2008 when prices fell 30%facilities. As a consequence, the domestic demand for
in just six months. During 2009, prices have gone upwood products will increase. Furthermore, Brazil will be
again and were 22% higher in the 4Q/09 ashosting the Olympic Games in 2016, which will result in
compared to 4Q/08. Sawlog prices in the 4Q/09additional substantial investments in the construction
were just 11% below their all-time high of 2008.sector in the country.
Brazilian sawlog prices are currently below the GlobalThe Brazilian timber market will be the focus in the
Sawlog Price Index (GSPI), which inched up toupcoming Timberland Investment Trends conference
US$68.87/m3 in 3Q, but are still substantially higherin Sao Paulo, Brazil March 15, 2010.  In conjunction
than in the US, Canada, Russia and New Zealand.with the conference, there will also be a two-day
Some of the log price fluctuations can be explainedconference, the 4th Global Wood Fiber Conference:
by the varying strength of the Brazilian Real, butTrade in Wood Fiber and Biomass. For more
prices have also changed in the local currency. Loginformation, please visit
prices in Real terms reached their peak in 2006 andGlobal timber market reporting is included in the
have since fallen 11%, reports the Wood Resource50-page publication Wood Resource Quarterly. The
Quarterly. Sawlog prices have continued to fall inreport, established in 1988 and with readers in over
2009 primarily because of sharp reductions of lumber25 countries, tracks sawlog, pulpwood, lumber and
exports to North America and Africa. In 2009, Brazilpellet prices in key regions around the world and also
exported 45% less softwood lumber than in 2007.includes regular updates of the latest developments in
The domestic demand for lumber has also declined,international timber, pulp, lumber and biomass
partly because composite board and plywood aremarkets.
being used in its place.