{"id":86947,"date":"2023-11-01T06:39:18","date_gmt":"2023-11-01T06:39:18","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/global-wood-prices-continue-to-fall\/"},"modified":"2025-09-19T09:00:59","modified_gmt":"2025-09-19T09:00:59","slug":"global-wood-prices-continue-to-fall","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/global-wood-prices-continue-to-fall\/","title":{"rendered":"Global wood prices continue to fall"},"content":{"rendered":"<p>The global wood market is also going down steeply. The problems on other continents are almost the same as in Europe. Rising interest rates are strangling the housing market and plunging the construction industry into a serious crisis.<span id=\"more-34019\"><\/span><\/p>\n<p>Lumber prices fell to about $480 per 1,000 board feed in the U.S. this week due to weak demand, near the four-month low hit on September 21. Since the last interim high in July, wood prices have fallen by 20% .<\/p>\n<p>The latest data showed a decline in US softwood lumber imports from Europe, which totaled 428 million board feed (mmbf) in the second quarter. That's 30% less than the record volume of 610 million board feed in the first quarter and 12% less in the same period last year.<\/p>\n<p>Market observers expect European exports to the US to maintain their downward trend at least in the third quarter and remain well below the record levels of 2022 due to high interest rates , declining production and seasonal effects , analysts at Trading Economics report.<\/p>\n<p>Of course, this also has an impact on export prices for wood in Europe and creates further price pressure here. According to macro models from analyst firm Trading Economics, lumber prices are expected to fall to around $466\/1000 board feed by the end of this quarter.<\/p>\n<p>For a period of 12 months, the analysts then estimated the wood price at just USD 408\/1000 board feed. If global wood prices continue to fall so significantly, this will of course also have consequences for wood prices in Europe and other markets.<\/p>\n<p><strong>Record high interest rates are strangling house construction<\/strong><\/p>\n<p>At the height of the COVID-19 pandemic in 2020 and 2021, high lumber prices and other material costs were a major factor in U.S. housing costs soaring, analysts say. These material prices, particularly for lumber , are now back to pre-pandemic levels.<\/p>\n<p>But now home buyers and developers must navigate a completely new market environment in which high and rising interest rates are significantly increasing property prices.<\/p>\n<p>In the US, many potential buyers are waiting for interest rates to stabilize before they are willing to make a down payment. However, activity in the real estate market (in the US and Europe) is currently extremely weak due to rising mortgage rates.<\/p>\n<p>The national average 30-year mortgage rate rose for the sixth straight week to 7.63% in the third week of October, according to American mortgage lender Freddie Mac.<\/p>\n<p>In addition, the Federal Reserve could raise the key interest rate further before the end of the year in order to further contain inflation. In March 2022 the interest rate was still 0%. After eleven rate hikes, the current interest rate range is 5.25% to 5.5%, the highest level in 22 years.<\/p>\n<p><strong>Wood prices as a leading indicator for the economy<\/strong><\/p>\n<p>Markets reflect economics and politics, and wood is a good barometer of sentiment due to its penchant for extreme price volatility (on US stock markets), various analysts say. In typical years, lumber prices also reach seasonal lows as the winter season begins and construction activity declines.<\/p>\n<p>However, 2023 is not a typical year with an aggressive interest rate policy and extremely uncertain geopolitical developments. According to analysts, there is another point about the wood market that is important for assessing the situation: wood tends to develop ahead of other markets (in time) because it is a very sensitive interest rate barometer or a leading indicator for the general market economic development.<\/p>\n<p>The dramatic price rallies from 2020 to 2022 signaled the highest inflation in decades, and the sharp corrections then signaled the new monetary policy stance of the US Federal Reserve (Fed) and the ECB.<\/p>\n<p>According to this assessment, the dramatic price movements for sawn timber in recent years have been an important signal of economic and interest rate policy changes and will probably remain so.<\/p>","protected":false},"excerpt":{"rendered":"<p>The global wood market is also going down steeply. The problems on other continents are almost the same as in Europe. Rising interest rates are strangling the housing market and plunging the construction industry into a serious crisis. Lumber prices &hellip; <a href=\"https:\/\/www.timberindustrynews.com\/ro\/global-wood-prices-continue-to-fall\/\">Continue reading <span class=\"meta-nav\">&rarr;<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":83683,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[1],"tags":[],"class_list":["post-86947","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.9 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Global wood prices continue to fall - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/global-wood-prices-continue-to-fall\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Global wood prices continue to fall - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"The global wood market is also going down steeply. The problems on other continents are almost the same as in Europe. Rising interest rates are strangling the housing market and plunging the construction industry into a serious crisis. 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