In the summer heat, the timber market is lacking a clear direction. Demand varies from region to region. Here and there, there is renewed demand for industrial timber.

For several months, the sawmill industry bucked the general economic trend and continued to purchase coniferous sawlogs at attractive prices. That has now come to an end. The order book for timber construction in Austria remained weak in the first half of the year. Consequently, this sector is not performing any better than the construction industry as a whole. With the resumption of hostilities in the Middle East, it is also virtually impossible to predict how energy prices will develop.

This complex situation is having a negative impact on sawn timber sales and, consequently, on demand for coniferous sawlogs. “Demand varies from region to region, as the stock levels at sawmills range from well-stocked to those with capacity to take on more, right through to those with very low stock levels,” reports the forestry department of LK Austria. In Upper Austria, for example, all sawmills have capacity to take on more. In Styria, by contrast, deliveries from the affected areas are being rationed.

In terms of price, the core spruce/fir range (Grades A, B, C, 2b) stands at a national average of 121.06 euros per solid metre (net, free at roadside). This represents a fall of a few cents compared with the previous month. The purchasing capacity of Upper Austrian sawmills is not yet reflected in the prices. Prices have merely remained at the level seen over the past two months. LK analysts recorded the highest prices in Salzburg and Styria, where up to 128 euros per solid metre was paid. The lowest prices were reported in the far west of Austria, with foresters in Vorarlberg in some cases receiving as little as 112 euros per solid metre.

The latest developments in Lower Austria are of interest. There, following the usual seasonal lull in late spring, pine is once again being sold. In terms of price, however, it is only hovering around the national average of 82.58 euros per solid metre (Classes A, B, C, 2a+). “Due to the risk of blue stain, care must be taken to ensure prompt removal,” advise the LK forestry experts. There has been no reversal of the trend for larch: supply remains below demand. “Prices are holding steady at a high level,” they report. According to reports, prices of more than 150 euros per solid metre are still common. Generally speaking, according to the LK – with the exception of Styria – sufficient transport capacity is available. “The forest stockpiles have largely been cleared,” they say.

Industrial timber sought
With the decline in sawmill output, the volume of sawmill by-products has also fallen recently. “This is causing demand for coniferous industrial roundwood to rise steadily,” sources in Vienna report. Despite some build-up of stock in recent weeks, the paper, pulp and board industries’ facilities remain fully capable of absorbing the supply. Supplied batches are being collected and taken off the market quickly. Nationwide, a price surge has yet to materialise. On average, 44.47 euros per solid metre is being paid for pulpwood (spruce/fir). Salzburg is also well above this average. According to LK statistics, prices there have recently reached just under 60 euros per solid metre.

Seasonal Energy Wood Market
The energy wood market remains unaffected by oil price trends. In this country, it is proceeding “in line with the season.” “Individual buyers are trying to secure supplies for the upcoming heating season and build up adequate inventory levels,” the analysts report. Combined with higher procurement costs driven by energy costs, prices have been adjusted slightly upward in some regions. This has been the case for high-quality wood chips (ex-factory), which now fetch an average of 119 euros. The firewood market shows little movement. Taking into account the usual regional variations, softwood fetches an average of 83 euros per cubic meter, while hardwood commands the familiar 112 euros.

Meanwhile, LK Forestry Consulting emphasizes that, despite recent rainfall, conditions remain ideal for bark beetle infestation. This year more than ever, infested trees should be quickly identified and removed from the stand or rendered harmless to prevent further spread.


Source: bauernzeitung.at