The market price of softwood lumber in Estonia has fallen by up to 20 percent, with companies’ considerable stock and falling demand considered the main reason.
Timber sellers have been buying material based on the last few years’ demand in recent months. However, high construction prices have seen several public and private sector projects postponed, which has impacted demand for softwood lumber.
Everyone was trying to get their hands on as much material as possible in the second quarter, in March, in light of the Ukraine war and fears of losing access to the Russian market. This is the result – warehouses are full,” Janar Tatomir, head of purchasing and sales of lumber at AS Barrus, said.
The market price of a stacked cubic meter of spruce lumber has fallen by over €100.
“If in the second quarter, prices fluctuated between €420 and €460 per cubic meter, you can buy the same quantity for €300 or even €290 today. Prices have fallen considerably, and we don’t know whether that’s the end of it,” said Peeter Peedomaa, head of OÜ Peetri Puit.
While major companies are signing end-of-year contracts at lower prices, the decline in prices has yet to reach the small consumer.
Andres said that he cannot see lower prices. “Prices were hiked and that is where they have remained,” he said.
Aigar Aia, who has been selling sawn timber used in construction in Võru for almost 20 years, said that those who need timber will buy it.
“It seems as though everyone has suddenly decided to renovate their summer home. My view is that people buy more timber than previously,” Aia said.
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