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Field notes
Industry·09 Apr 2025

Quarterly market: rising stress-grade premiums

F22 spotted gum is up 9% on Q4 last year. What's driving it, what's likely next, and what we're recommending clients lock in early.

Three drivers behind the Q1 stress-grade premium increase.

First: engineered timber demand. Manufacturers making glulam and CLT (cross-laminated timber) are paying premium prices for clear-grade structural logs because their finished product commands higher margins than dimensional lumber. They're outbidding traditional sawmills at the log auction.

Second: weather. La Nina years (we just exited a two-year stretch) compress the harvest window in NSW and Queensland forests. Less harvest, same demand, prices rise.

Third: replacement cycle for older infrastructure. A lot of pergolas and decks built in the 2005-2010 boom are now hitting end-of-life. Replacement demand is steady and visible in the order books.

What we're recommending to clients with structural carpentry in their 2025 plans: lock in the quote with a 90-day price guarantee where supplier permits. We're seeing 2-3% month-on-month rises on F22 spotted gum, which means a job quoted in April and built in July costs us 6-8% more in materials than we accounted for. The 90-day lock lets us absorb that.

Looking forward: blackbutt is following spotted gum but lagging by a quarter. Tasmanian oak is stable (different supply chain). American hardwoods (oak, walnut) are tracking exchange rates rather than local market and are roughly flat.

Want to talk?

Call 0414 285 493 or send a brief through the quote form.

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