Published / Reported by GLOBAL WOOD MARKETS INFO

GWMI Admin

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German forest owners have been reporting for a few weeks that the demand for softwood lumber is falling significantly. Many forest owners had to cope with significant price reductions during price negotiations with the sawmill industry. For the third quarter, price declines by between 20 and 25 euros/m3 were reported for the leading range of spruce sawlogs 2b. Nevertheless, the wood prices are still at a very good level.

Fresh spruce sawlogs for the leading range 2b was mainly sold for 90 to 100 euros/m3 in the third quarter. Two months earlier, however, it was still 120 euros.

Fresh spruce wood in the leading range 2b was mainly sold for 90 to 100 euros/m3 in the third quarter. Two months earlier, however, it was still 120 euros. The prices for beetle wood was between 65 and 70 euros/m3. However, the regional price differences are greater than in previous years. For pine, prices of between 70 and 75 euros/m³ for 2b BC were last reported.

In the case of pallet wood, on the other hand, the prices are very firm at almost 60 euros/m3. Contrary to the development of sawlogs, all pulpwood and energy wood ranges are in high demand and prices are continuing to rise. This development means that it can make sense to use poor-quality sawlogs as pulpwood or energy wood, say forest owners.

Boom in firewood and energy wood

Lower availability and massively increased prices for fossil-based products lead to lively demand for all types of energy wood. The prices for gas, electricity and heating oil will probably remain very high and the demand for energy wood and firewood should therefore continue to rise in Germany.

For quality firewood, which requires a lead time of up to two years due to the drying time, the demand in many regions significantly exceeds the supply. Many customers are also stocking up on firewood in addition to their own annual requirements and are fueling the boom. There is also an additional boost in demand as a result of many consumers switching from gas and oil heating systems to wood heating systems.

By contrast, demand from the construction industry weakened noticeably. The sale of building products made of wood and lumber has correspondingly declined significantly. Forest owners also report that the sawmill industry is sufficiently stocked with softwood sawlogs due to strong deliveries in the second quarter. In addition, there are currently longer company holidays and inspection shutdowns during the summer months.

The post Wood prices in Germany fall significantly appeared first on Global Wood Markets Info.

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