Most of the price increases have occurred in the Western United States and Western Canada.

SEATTLE—The Global Sawlog Price Index decreased by 1.4% from the first quarter of 2018 to the second quarter of 2018. This was the first quarter-over-quarter decline since the fourth quarter of 2016.

Sawlog prices fell on all continents (in US dollar terms) except for North America, where prices in the second quarter 2018 were 3% higher than the previous quarter and up 13.5% from the second quarter 2017. Most of the price increases in North America during the past year have occurred in the Western United States and Western Canada, while log prices in Eastern Canada and the southern US have stayed quite stable during the same time period.

In the Western US, sawlogs prices rose sharply during 2017 and early 2018 but came to a halt in late spring when prices slightly declined. With limited interruptions in harvesting operations and declining log exports in the first half of the year, log supply was sufficient in the summer, which eased the consistently upward price pressure from the past two years. Prices are likely to continue downward from the high levels during the second half of 2018 because of the weakening demand for softwood lumber in the United States.