Production cost margins for sawmills in Brazil, Russia and Finland have fallen during the first half of 2017, while they increased to their second highest level in 13 years in the US South in the 2Q/17, according to the Wood Resource Quarterly

Resource Quarterly
The sawmill margins to cover non-wood costs and profits have been squeezed in a number of countries in the first half of 2017 because of relatively higher raw-material costs and lower lumber prices, according to the Wood Resource Quarterly. Since the wood costs account for about two-thirds of the production costs when manufacturing softwood lumber, it is essential for sawmills to control the wood cost/lumber price ratio.

Hakan Ekstrom
Wood Resources International LLC
Seattle, USA
www.woodprices.com