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German Timber Market Report -- 
Wood prices collapse drastically as construction sector cools down

[Jul 26, 2023]



A whole range of sawmills only offer mixed prices of 74 to 79 euros/m3 for spruce wood in BC quality and only 53 to 56 euros/m3 for beetle wood. In the wake of the spruce, sales of pine have almost come to a standstill.

Wood prices fall drastically. Sales falter. The market is out of joint. Many sawmills only pay mixed prices for spruce between BC and beetle wood. Others only pay the beetle wood price. Pine wood is hardly for sale anymore.

Forest owners and the sawmill industry are currently reporting massive sales difficulties for sawn timber. As a result, production volumes have already been significantly reduced. Most forest owners' associations expect that the reductions in cuttings that have started in many regions will probably be significantly expanded in the third quarter.

The consequences of the slump in sales for the log sales of the forest owners and the wood prices are dramatic. The sawmill industry reports a lack of sales opportunities in almost all product ranges. The domestic market as well as the markets in Europe and overseas are under pressure. This is due to the sharply shrinking demand for sawn timber due to the massive problems in the construction industry.

The critical sales situation is having a massive impact on wood prices. A whole range of sawmills now only offer a Käfer/D/BC mixed price or the spruce beetle wood price. For this reason, the quantities of fresh wood are significantly reduced by the whale owners or the felling of fresh wood is often stopped altogether.

Numerous sawmills are trying to prevent a further deterioration in the sales situation by significantly reducing the quantities purchased and sold. The holiday and maintenance shutdowns that are common in the summer months are therefore often extended.

Wood prices fall drastically

The price situation on the sawn timber market is very confusing and differs greatly from region to region. Existing contracts are occasionally terminated by the buyer. New contracts are rare and are only concluded at greatly reduced prices for short periods of time.

Only occasionally do forest owners report prices of 87 to 92 euros per cubic meter (FM) for spruce in BC quality from a mean diameter of 20 cm and beetle wood prices for 2b+ from 62 to 64 euros/FM net. A whole range of sawmills only offer mixed prices of 74 to 79 euros/m3 for spruce wood in BC quality and only 53 to 56 euros/m3 for beetle wood.

In the wake of the spruce, sales of pine have almost come to a standstill. For pine wood BC quality, the price reports are often only between 50 and 54 EUR/m3 and for D qualities at 49 to 53 EUR/m3. Demand for coniferous industrial roundwood is also low. Here, too, prices are falling. The takeover is often subject to strict quotas, forest owners report. The locations of the paper, pulp and board industry are very well stocked.

The demand for energy wood is at a level that is usual for the time of year. Prices also fall following industrial roundwood. The market assessments of the sawmill and timber industry are assuming at best stagnating for the next few weeks and months, and more likely a further decline in sales opportunities. The reason is that the construction industry is likely to continue to cool down.

Source: agrarheute.com

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