Despite these challenges, there are glimmers of hope in the market. Latin American producers operating in Europe have announced plans to increase prices for eucalyptus pulp.
The majority of imports in June comprised pulpwood (74% ) and chips (15%). Logs accounted for 2%, while fuelwood constituted 6%.
After the Russian invasion of Ukraine and subsequent EU sanctions, the supply of wood pellets from Russia completely stopped.
However, securing an adequate supply of raw materials poses a significant challenge. The most substantial hurdle lies in Götaland, already grappling with a severe wood shortage.
Daily port off-take has seen a slight reduction but remains within the normal range for this time of year.
Logging residues accounted for nearly two-thirds of the energywood trade during Q2.
In construction, employment ascended by 19,000, maintaining consistency with the average monthly rise of 17,000 observed over the last year.
Experts predict larger price hikes for August.
The surge in economic activity and housing will be driven by pent-up housing demand and low inventories.
Russia currently faces an excess of approximately 600 thousand tons of corrugated cardboard, and this surplus is expected to reach a total of 1 million tons.
In June, the average price for wood chips for the first time since the beginning of the year was lower than a year ago.
The sluggish North America lumber market finally started to improve in late June and into July. The one driver that seems to have triggered the market is the severe forest fire situation across Canada.
The seasonally adjusted 1-month change of softwood lumber price showed a positive trend, with a 3.9% increase in June compared to May.
During the first five months of 2023, the construction spending amounted to $740.8 billion, indicating a 2.9% increase compared to the same period in 2022.
In the real-estate market, hope for a sustained recovery was dashed as home sales for the top 100 Chinese property developers fell 28.1% in June compared to the previous year.
While there is a general consensus that the price cycle has reached its bottom, predictions about the rate of recovery remain uncertain.
A year ago, during the same period, the 30-year FRM averaged 5.70%.
The increase in real GDP in the first quarter can be attributed to rises in consumer spending, exports, state and local government spending, federal government spending, and nonresidential fixed investment.
The existing single-family home market currently faces a scarcity, with only a 3-month supply available.
The recent resurgence in single-family housing starts is a promising sign that is expected to extend throughout the summer.