US lumber companies record high profits in 2Q due to high lumber prices in the US

Posted on October 16, 2020

• Stable income for residual chips, and slightly lower costs for sawlogs in Q2 helped record high gross margins for US sawmills not seen since 2005 • In Europe, Swedish lumber companies saw improvements in profitability in the Q2 2020 due to increased prices for both domestic and exported lumber and slightly lower sawlog costs. • In Finland, both lumber prices and net wood costs (sawlog costs minus residual income), saw minimal changes in the Q2 2020, thus maintaining the current and historically low levels of gross margins. • Sawlog prices in both countries have trended downward for about two years. • In Other countries such as Austria, Russia, and Brazil, gross margins increased in the Q2 2020 mainly as a result of sawlog prices declining by 10-20% quarter-over-quarter.