Austria: Softwood log prices are falling, energy wood prices are increasing noticeably

In July, the Austrian construction industry is noticeably weakening. Sales of building products made of wood and lumber have decreased significantly. The Austrian sawmill industry is also sufficiently stocked with softwood sawlogs due to strong deliveries in the 2nd quarter. Demand is correspondingly low at the moment.

Longer company holidays and inspection shutdowns to stabilize the market that were announced over the summer months are also dampening demand. The price for the leading range of spruce logs, A/B, 2b has been reduced by up to €15 per cubic meter. The storms in Carinthia also caused damage to the forest, the amounts are manageable. However, in combination with the increased amount of beetle wood in Upper Carinthia and East Tyrol, the log market in this region is under pressure.

War, COVID-19 and supply crisis as causes

The reason for the “weakening construction industry” is the aftermath of the COVID-19 crisis, Ukraine war, ongoing interruptions in supply chains, rising consumer prices and the tightening of central bank monetary policy are dampening global economic development. Compared to other national economies, a smaller decline is forecast for Austria, as the economic slowdown in the industrial sector is partially offset by the positive development in the tourism industry.

Increased demand for industrial wood

The reduced cut in the sawmill industry causes the supply of sawmill by-products to fall. The demand for softwood industrial roundwood is therefore brisk. Quantities made available are quickly transported away and taken over. Prices have been able to increase or have continued to strengthen. Red beech pulpwood is also in high demand, and prices have also increased here. Ash fiber wood can be sold to various buyers without any problems.

Firewood price increases “following the laws of the market”

Europe is in an energy crisis. Lower availability and massively increased prices for fossil-based products lead to lively demand for all types of energy wood. Following the laws of the market, prices were able to increase. For quality firewood, which has a lead time of up to 2 years due to the drying time, the skyrocketing demand significantly exceeds the supply. The fact that customers stock up on firewood in excess of their own annual requirements exacerbates the excess demand. The switch from gas and oil heating to wood-fired boilers will create additional demand.

A cubic meter of beech firewood, dried and delivered in the Vienna area, cost end customers 90 to 100 euros three years ago, now they have to pay 135 euros – if you can still get the goods.

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