BENCHMARK REPORT RELEASED
According to the 2011 edition of the Global Timber/Sawmill/Lumber Cost Benchmarking Report released this month by Vancouver, B.C.-based International WOOD MARKETS Group Inc. (IWMG), “sawmills around the world rebounded in 2010 after some of the worst losses in recent history in the second half of 2008 and much of 2009.”
The report noted the average global sawmill margins (on an EBITDA basis – earnings before interest, tax and depreciation allowance), were US$5 per cubic metre (net lumber basis; or $8 per Mbf, nominal basis) in 2010 at “average” sawmills, narrowing in Q1/2011 to US$3 per cubic metre (or $5 per Mbf, nominal). In 2008, the global “average” sawmills recorded a loss of US$12 per cubic metre, versus a profit of US$8 per cubic metre in 2006.
IWMG said for the third year in a row, Canada had the lowest EBITDA global earnings in 2010 for “average” sawmills. “This poor performance was due to the collapsing U.S. market, the strength of the Canadian dollar against the U.S. currency, and the impact of Canadian export taxes on U.S. shipments. Canada’s results were dragged down by Eastern Canada, which achieved the poorest results of all global regions surveyed (also for the third year in a row).”
The report also covers a number of other topics, including log costs (Canada’s lowest delivered log costs were in the B.C. Interior, which consumed a large volume of mountain pine beetle-killed logs), sawmilling costs, delivered U.S. pricing, developments in Europe and Russia, and statistics at a glance for a number of regions.
For more information on the report, visit www. woodmarkets.com.
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