In December 2024, the producer price index (PPI) value of structural timber was measured at 165.1 across six capital cities in Australia. The highest PPI recorded in the given time period was in September 2022. Producer price indexes are used to measure the price change of products, goods, and services during the production process.

Australia Forest Product Price Index: Timber, Board and Joinery data was reported at 167.400 1989-1990=100 in 2023. This records an increase from the previous number of 147.250 1989-1990=100 for 2022. Australia Forest Product Price Index: Timber, Board and Joinery data is updated yearly, averaging 74.650 1989-1990=100 from Jun 1975 (Median) to 2023, with 49 observations. The data reached an all-time high of 167.400 1989-1990=100 in 2023 and a record low of 16.775 1989-1990=100 in 1975. Australia Forest Product Price Index: Timber, Board and Joinery data remains active status in CEIC and is reported by Australian Bureau of Agricultural and Resource Economics and Sciences. The data is categorized under Global Database’s Australia – Table AU.I062: Price Index: Forest Product: 1989-90=100.

This report analyses the domestic price of timber. This report uses the log price index which is sourced from the Australian Forest and Wood Products Statistics Report. This report is obtained from the Australian Bureau of Agricultural and Resource Economics and Sciences (ABARES). The log price index measures nominal prices paid per cubic metre at the sawmill. The data is presented as an index with a base year of 1999-00.

View monthly updates and historical trends for Timber Price Index . Source: World Bank. Track economic data with YCharts analytics.

Lumber rose to 625.61 USD/1000 board feet on October 15, 2025, up 1.07% from the previous day. Over the past month, Lumber's price has risen 9.28%, and is up 19.83% compared to the same time last year, according to trading on a contract for difference (CFD) that tracks the benchmark market for this commodity. Lumber - values, historical data, forecasts and news - updated on October of 2025.

PPI: Articles: Mfg Industries: LS: Sawmilling & Timber Dress: Resawn & Dressed Timber data was reported at 157.200 1989-1990=100 in Sep 2009. This records a decrease from the previous number of 159.200 1989-1990=100 for Jun 2009. PPI: Articles: Mfg Industries: LS: Sawmilling & Timber Dress: Resawn & Dressed Timber data is updated quarterly, averaging 131.600 1989-1990=100 from Sep 1989 (Median) to Sep 2009, with 81 observations. The data reached an all-time high of 165.500 1989-1990=100 in Dec 2008 and a record low of 92.700 1989-1990=100 in Dec 1991. PPI: Articles: Mfg Industries: LS: Sawmilling & Timber Dress: Resawn & Dressed Timber data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I022: Producer Price Index: 1989-90=100: ANZSIC 1993: Output of the Manufacturing Industry.

The Forestry and Logging industry has faced challenging conditions. A sharp downturn in residential construction over recent years has significantly weakened domestic timber demand. The failure to meet new housing targets, rising construction costs and builder insolvencies have all contributed to delayed projects and dampened confidence, directly softening timber consumption. Along with weak demand, stricter regulations on native forest harvesting, the lingering effects of catastrophic bushfires and a prolonged decline in native hardwood supply have constrained harvested wood volumes and created operational challenges for sawmills and exporters. The industry's historical reliance on native forests, now in decline, limits the availability of raw materials and restricts innovation opportunities, particularly in value-added timber products. Timber supply constraints, along with rising costs in manufacturing and transport, have caused timber prices to increase, offering some profit relief to producers. However, higher prices haven’t been enough to stem revenue losses amid subdued downstream demand. Consolidation activity has occurred within the industry because of shifts away from managed investment schemes, leading to fewer but larger companies dominating the market. This trend has reduced diversity and increased sensitivity to policy and market fluctuations. Industry companies have focused on plantation expansion, adopting precision forestry technologies and advocating for government support to diversify markets beyond traditional residential construction, including renovation, infrastructure and exports, particularly to Asia. Industry revenue is expected to have shrunk at an annualised 4.5% over the five years through 2024-25 to $4.1 billion. This includes an anticipated drop of 3.4% in 2024-25. In the coming years, harvested wood volumes are poised to increase as plantations mature and yields improve, aided by recent favourable weather conditions. This increase in supply will better support downstream industries, including construction and wood processing, contributing to more stable timber prices and supporting revenue growth. A recovering housing market, buoyed by projected interest rate cuts and national housing targets, will drive stronger timber demand, especially for engineered timber products that align with sustainability and design innovation trends. These advanced wood products, like cross-laminated and glue-laminated timber, are becoming increasingly important in medium-density and modular construction, offering the industry new value-added revenue streams and greater alignment with government environmental goals. Overall, industry revenue is forecast to recover, growing at an annualised 1.8% over the five years through 2029-30 to $4.5 billion.

Australia PPI: Output: Manufacturing: Wood: Log Sawmilling & Timber Dressing data was reported at 165.300 1989-1990=100 in Jun 2012. This records a decrease from the previous number of 167.900 1989-1990=100 for Mar 2012. Australia PPI: Output: Manufacturing: Wood: Log Sawmilling & Timber Dressing data is updated quarterly, averaging 128.800 1989-1990=100 from Sep 1989 (Median) to Jun 2012, with 92 observations. The data reached an all-time high of 173.500 1989-1990=100 in Jun 2011 and a record low of 96.500 1989-1990=100 in Dec 1991. Australia PPI: Output: Manufacturing: Wood: Log Sawmilling & Timber Dressing data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I021: Producer Price Index: 1989-90=100: ANZSIC 2006: Output of the Manufacturing Industry.

Australia PPI: Input: House Construction: WA: Timber, Board & Joinery data was reported at 167.200 2011-2012=100 in Mar 2025. This records a decrease from the previous number of 167.900 2011-2012=100 for Dec 2024. Australia PPI: Input: House Construction: WA: Timber, Board & Joinery data is updated quarterly, averaging 72.400 2011-2012=100 from Sep 1966 (Median) to Mar 2025, with 235 observations. The data reached an all-time high of 168.700 2011-2012=100 in Jun 2023 and a record low of 8.100 2011-2012=100 in Sep 1966. Australia PPI: Input: House Construction: WA: Timber, Board & Joinery data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I030: Producer Price Index: 2011-12=100: ANZSIC 2006: Input to the House Construction Industry.

Industry businesses have faced challenging conditions over the past few years. Demand from downstream wood product manufacturers and building construction industries has influenced the industry's performance. Along with greater substitute competition, reduced demand from carpentry services amid the COVID-19 pandemic has been detrimental to the industry. Demand has stayed afloat as the country recovers from the pandemic's economic and social disruptions. Overall, industry revenue has grown at an annualised 0.4% over the past five years and is expected to total $2.3 billion in 2023-24, when revenue drops by an anticipated 4.1%. Declining demand from carpentry services and house construction is contributing to this trend.The domestic price of timber has surged, increasing operating costs and pushing down profit margins. Some businesses have struggled to pass on cost increases to downstream markets. Greater competition from substitute products, like concrete and steel, has been the primary driver for this trend, while demand falls during the COVID-19 pandemic have left some businesses with excess inventory. Industry manufacturers have invested in new technology, including scanning systems and automated cutting machines, to minimise wood waste, maximise output and adapt to these challenging operating conditions.Industry operating conditions are set to improve going forwards as the COVID-19 pandemic's adverse effects dissipate. Plantation tree availability will continue dipping, while demand for substitute products from the construction sector will remain strong. Despite these factors, industry revenue is forecast to climb at an annualised 2.3% over the five years through 2028-29 to total $2.6 billion. Growth in wood product manufacturing and building construction activity is set to boost demand for resawn and dressed timber.

In 2021, the inflation rate of the cost of steel products in Australia was **** percent. This was the highest inflation rate of all construction materials in the country. On the other hand, construction materials like timber and metal products saw a inflation of **** percent and **** percent, respectively.

Falling demand from downstream manufacturers and greater use of importers have threatened the Fabricated Wood Manufacturing industry’s viability. Shrinking plantation tree availability has kept timber prices high while ongoing import penetration is blocking manufacturers from passing costs on to their customers. Dwelling commencements and residential building construction activity have weakened and dampened demand for fabricated wood. Downstream builders have also been straddled with exorbitant costs, adding to woes in construction sector activity. With less confidence in this market, fabricated wood manufacturers have struggled to maintain their sales counts. Overall, industry revenue has declined at an annualised 0.1% over the past five years and is expected to total $1.7 billion in 2024-25, when revenue will slump by an estimated 1.4%. Fabricated wood manufacturers have faced rising competition from importers that can pass on cost savings from overseas manufacturers with lower overhead costs. In particular, Chinese offerings have battered local manufacturers’ aspirations, with their portion of imports rising to 49.0% this year. Structural timber product manufacturers have also struggled to fend off competition from substitute materials like plasterboard, timber, aluminium and concrete. As the economy recovers from the construction slowdown, improving conditions are projected to support industry revenue growth at an annualised 0.1% over the five years through 2029-30 to reach $1.8 billion. An upwards trend in most building markets, including multi-unit apartments, commercial buildings and industrial construction, will underpin domestic demand for fabricated timber products. State and Federal Government pledges to meet the growing population's needs while remaining budget conscious will lend themselves to greater usage of fabricated wood products, particularly plywood and particleboards. Demand from downstream wooden structural component and furniture manufacturers will also support industry sales, especially as budget-conscious consumers become more accustomed to inexpensive, particleboard furniture. Nonetheless, greater import penetration and declines in available plantation trees will lift input prices and limit profitability.

Australia's forestry product exports were estimated to amount to **** billion Australian dollars in the fiscal year 2025. It was also forecasted that this value would increase to around **** billion Australian dollars in the 2026 financial year.

The Log Sawmilling industry has faced challenging conditions over the past few years. Various factors have weighed on industry revenue, including the adverse effects of COVID-19, weaker demand for timber products in the building construction markets and production bottlenecks for hardwood sawmillers. Nonetheless, new wood-based building products with broader applications have supported log sawmilling businesses by boosting their products' competitiveness over steel and other substitute building materials. Revenue is expected to have dipped at an annualised 0.8% over the five years through 2024-25 to $1.9 billion. This includes an anticipated 3.5% fall in 2024-25 because of turbulent demand conditions in the various construction markets. Industry profitability has strengthened over the past five years, recovering from a low baseline in 2019-20 when lockdowns were in force. During 2019-20, bushfires tore through Australia's forests, setting timber supply back and leaving sawmillers reeling as they tried to meet operational needs. Log sawmilling companies have undergone substantial structural change. Larger businesses have acquired other operations, while many smaller-scale enterprises have exited the industry, with mid-size companies capturing market share by acquiring the assets of failed industry businesses. This trend has enabled some mid-size industry companies, like AKD, to increase their size, improve scale economies and access adequate timber deposits. Government initiatives to kickstart rapid house construction activity and a continual expansion in softwood plantation hectares will support growth in revenue, which is forecast to climb at an annualised 3.1% over the five years through 2029-30 to $2.2 billion. Commercial construction will continue to be limited, as working from home trends are set to persist as the new norm for Australia's white-collar business world. Growth in timber pricing is set to plateau in response to an expanding volume of wood harvested. As the potential for timber oversupply limits price-driven growth, industry profitability is poised to stabilise back towards pre-pandemic levels.

Overview
This technical report estimates the responsiveness of demand for structural pine to changes in timber and steel prices. Measures of demand responsiveness can provide valuable insights into the potential implications of changes in policy or market settings on volumes and prices received by producers. The analysis focuses on estimating short-term price elasticities of demand--a formal measure of the sensitivity of demand--to changes in prices in the same quarter or recent past.

Key Issues
The estimates in this report suggest that the importance of timber and steel prices on the quantity of structural timber demanded in the short-run is limited. However, the volume of residential construction activity was found to have a substantial effect for demand of domestically produced structural pine products. In particular, new house commencements explain a great deal of the quarter-on-quarter changes in the quantity of domestic structural pine sales. This confirms the common assertion by industry that house commencements are the primary driver for structural timber demand within Australia.

Looking forward, changes in consumer preferences, socio-demographic trends and building regulations will likely play a much greater role in the choice of building materials used in housing construction compared with timber and steel prices. Trends suggest consumers are placing more weight on the environmental benefits of structural materials. Changing architectural styles will change the material requirements for a standard home. A global trend towards higher-density living will likely promote a shift toward multi-unit buildings, with recent changes to the National Construction Code opening the way for increased timber use in the midrise construction market, leading to greater timber use in multi-level buildings.

Australia PPI: Output: Manufacturing: Wood: Log Sawmilling & Timber Dressing: Timber Resawing & Dressing data was reported at 157.200 1989-1990=100 in Jun 2012. This records a decrease from the previous number of 159.400 1989-1990=100 for Mar 2012. Australia PPI: Output: Manufacturing: Wood: Log Sawmilling & Timber Dressing: Timber Resawing & Dressing data is updated quarterly, averaging 133.300 1989-1990=100 from Sep 1989 (Median) to Jun 2012, with 92 observations. The data reached an all-time high of 170.000 1989-1990=100 in Jun 2011 and a record low of 92.700 1989-1990=100 in Dec 1991. Australia PPI: Output: Manufacturing: Wood: Log Sawmilling & Timber Dressing: Timber Resawing & Dressing data remains active status in CEIC and is reported by Australian Bureau of Statistics. The data is categorized under Global Database’s Australia – Table AU.I021: Producer Price Index: 1989-90=100: ANZSIC 2006: Output of the Manufacturing Industry.

Analysing the economic potential of forestry for carbon sequestration under alternative carbon price paths \r \r Overview \r The introduction of a carbon price under the proposed Carbon Pollution Reduction Scheme (CPRS) may be effective in promoting afforestation in Australia and contribute to Australia's emissions target through carbon sequestration. Rates of sequestration will depend on the stringency of the emissions reduction target, and hence the level of the carbon price. However, the rate of afforestation arising because of the carbon price may potentially affect the attractiveness of agricultural land use activities in Australia. In general, higher carbon prices are expected to decrease the profitability and attractiveness of other land use activities, such as agriculture, in favour of timber plantations and environmental plantings which generate carbon credits under the CPRS. \r \r ABARE has been commissioned by the Commonwealth Treasury to estimate the potential increase in afforestation activity on agricultural land under four hypothetical scenarios and a reference case. The key assumptions underlying ABARE estimates are described in some detail in this report. Assumptions relating to the cost of investment of afforestation and the area of land available for switching are important determinants of the land use conversion. Afforestation activity is assumed to include the establishment of commercial plantations and environmental plantings between 2007 and 2100.

Forestry machinery imports into Australia totaled X units in 2017, remaining constant against the previous year. Overall, forestry machinery imports continue to indicate an outstanding growth. The most prominent rate of growth was recorded in 2011, when the imports increased by X% y-o-y. Over the period under review, the forestry machinery imports reached its maximum volume in 2017, and are expected to retain its growth in the immediate term.In value terms, forestry machinery imports stood at $X in 2017.

Overview

This issue of the Australian forest and wood products statistics (AFWPS) includes updated 2015-16 data for key domestic indicators of forestry sector activity, including sales and service income and industry valued added. It also includes interim estimates of the volume and value of logs harvested in 2016-17, along with updated 2016-17 trade statistics for wood products and data for housing and other residential commencements.

Key Issues
• Forestry industry value added, or contribution to GDP, increased for the third year in a row, growing by 9 per cent to $8.6 billion in 2015-16. Sales and service income for the forestry sector also grew strongly to $23.7 billion in 2015-16 (up 7 per cent from the previous year). • ABARES estimates that Australia's forestry sector continued to grow strongly in 2016-17, with the total volume and value of logs harvested reaching record levels. Estimated total volume log harvest from native forests and commercial plantations increased by 9 per cent to 32.8 million cubic metres and estimated total value increased by 12 per cent to $2.5 billion. • After four consecutive years of growth in residential construction activity in Australia, dwelling commencements fell by 6 per cent to 219,300 in 2016-17. The decrease in commencements of other residential buildings (including units and house conversions) was greater than the decrease in house commencements. • Australia's trade in wood products has been growing since 2012-13 and reached a record level of $8.6 billion in 2016-17. The value of exports reached a record level of $3.4 billion (up 9 per cent from the previous year), while the value of imports fell to $5.3 billion (down 4 per cent from a record level in the previous year). • China was our largest trading partner in 2016-17 for wood products, accounting for over a quarter of Australia's total wood product imports, nearly half of total wood product exports and the majority of total wood products export growth over the year.

The forestry and fishing industry contributed around 9.16 billion Australian dollars in gross value added (GVA) to the Australian economy as of December 2024. In the previous year, the GVA was around 9.3 billion Australian dollars. This industry is an important segment of the primary sector across the country.