{"id":81411,"date":"2021-11-01T10:55:35","date_gmt":"2021-11-01T10:55:35","guid":{"rendered":"https:\/\/tin.happy-projects.ro\/estonian-log-prices-heading-fall-autumn\/"},"modified":"2025-09-19T08:56:22","modified_gmt":"2025-09-19T08:56:22","slug":"estonian-log-prices-heading-fall-autumn","status":"publish","type":"post","link":"https:\/\/www.timberindustrynews.com\/ro\/estonian-log-prices-heading-fall-autumn\/","title":{"rendered":"Estonian log prices are heading for a fall this autumn"},"content":{"rendered":"
\n

As in many countries, there was an unprecedented log boom in the Estonian timber market during this year. Incredible prices were paid for logs during this summer - as much as 135-150 \u20ac \/m3 for\u00a0 pine logs. Even then, experts predicted that this situation will not last long and we will soon see a price correction. Is the price bubble of the log rally bursting over?<\/em><\/p>\n

The autumn is here - where are the purchase prices of timber going in Estonia?<\/strong><\/p>\n

It can be said that price movements are still relatively unpredictable at the moment, but there is no secret that when buying, no one is willing to pay for high prices. Summer prices can only be taken into account by those who entered into longer volume contracts during this period and guaranteed themselves a relatively stable autumn.\u00a0<\/span>\"\"<\/a>Unfortunately, according to Jaano Haidla (in the left photo), Member of the Management Board of Graanul Invest, today's structure of private forest sales in Estonia lacks the ability to react to market changes. There is a lack of long-term contracts that would guarantee the realization of the best price and assortment. At the same time, Haidla admits that the prices of all assortments in Estonia are still very good thanks to the domestic industry, which has managed to find a high-priced consumer for the product. \"Log prices on the world market are still lower than in Estonia.''<\/p>\n

The same is confirmed by Lauri Junkin, the purchasing manager of AS Barrus logs, who estimates that no catastrophic fall in prices has been noticed yet, although he admits that no one pays such a mysteriously high price for logs in spring and summer. \"The situation in the market is stabilizing and is not so stormy,\" says Junkin.<\/p>\n

Junkin points out that at the moment the purchase price of\u00a0 pine sawlogs is somewhere between 110-125 \u20ac\/m3, which is still very high historically, and the prices of spruce sawlogs are, as always, slightly lower, fluctuating around 100-110 \u20ac\/m3. \"At the same time, the prices of birch logs have started to rise and the price of pulpwood is already so low that it has nowhere to fall. Rather, the price of low-value assortment is expected to rise,\u201d Junkin points out.<\/p>\n

Haidla concludes that only the price of softwood logs is currently in moderate decline, but it is still worth processing because it remains higher than the world market price. The prices of other assortments are either stable or moderately rising.<\/p>\n

How long will the price of logs fall and by how much?<\/strong><\/p>\n

For many forest harvesters and forest owners, the question of what the coming winter and the following spring will bring is important, because it was clear that autumn would bring not only falling leaves but also falling log purchase prices, as the world market price adjustment took place several months ago. It arrived in Estonia only a bit later.<\/p>\n

According to Jaano Haidla, the end of the softwood log price rally could be predicted at the beginning of it, because the world market trends did not support it in any way. \"Short-term price peaks only generate emotions, but from a rational point of view, they do not change the big and long-term picture. Today's log prices are still good and the price drop will end when the average level of previous years is reached, \u201dhe explains, adding that such a price increase was hopeless to last.<\/p>\n

According to Lauri Junkin, we are currently in a situation where new contracts are being concluded in the forest sector, but agreements are being made with caution. \"Price movements are unpredictable and buyers are therefore cautious, as some price correction is expected, which has already taken place, but fears that in half a year pine logs will be paid for more than half as much, ie somewhere between 60-70 \u20ac\/m3, are exaggerated fears.\"<\/p>\n

According to Junkin, we can see small price movements in the upcoming winter harvest season, which\"\"<\/a>\u00a0is largely influenced by weather and precipitation, because if for some reason timber prices fall so drastically, Estonian forest owners would refuse to sell their forest cheaply under such conditions. \"A wise forest owner usually has enough money and the decision to sell the felling right is made prudently, taking into account the condition of the forest and the market. There are no exceptions in this respect, but in general the awareness of forest owners has increased and they are able to make the right decisions. \u201d<\/p>\n

It is worth adding that both AS Barrus and Graanul Invest are major players in the Estonian timber sector, who have long-term contracts for the sale of timber, through which they are able to offer stability to themselves and their partners, and the work is year-round. Short-term price fluctuations do not hit such companies, but they are accompanied by hundreds of smaller players who cannot afford volume contracts on favorable terms. That is why they are also more affected by short-term changes in the market.<\/p>\n

For small companies the situation is different<\/strong><\/p>\n

According to AS Timber forest specialist Aron-Ken Veedla, their forest specialists have recently received several signals about how forest buyers want to quickly sell their logs bought in spring and summer in order to quiclky take advantage of high prices before they fall. \"The current fall in prices makes many people look to the future with caution. Only recently did I receive a signal from an active buyer in Estonian auctions, asking him to start working on the purchased deck now and immediately, because it is known that the prices of pine logs will fall significantly in October and the volumes are filling up, \u201d says Veedla. It is estimated that the price of pine logs may fall to \u20ac 20 per cubic meter already in October.<\/p>\n

In addition, there have been reports that, for the first time in 20 years, buying gates are simply being locked. \"In recent weeks, harvesters and foresters have actually been in a situation where the places where they used to take raw material are no longer accepted, not even for low prices. It is simply said that do not bring logs anymore and the doors are closed in front of the nose. \u201d<\/p>\n

The inevitability, however, is that what goes up fast tends to come down at the same pace. This is how logic works in the timber sector, where the price is largely determined by the relationship between supply and demand. The depletion of timber warehouses due to the corona crisis created a raw material crisis and supply difficulties, which fueled a price rally and turned the private sector's attention to softwood forests.<\/p>\n<\/div>\n

<\/h2>","protected":false},"excerpt":{"rendered":"

As in many countries, there was an unprecedented log boom in the Estonian timber market during this year. Incredible prices were paid for logs during this summer – as much as 135-150 \u20ac \/m3 for\u00a0 pine logs. Even then, experts … Continue reading →<\/span><\/a><\/p>","protected":false},"author":1,"featured_media":57949,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[4716,4715,4714],"tags":[3486,3722,3698,3675],"class_list":["post-81411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-latest-trends","category-market-analysis","category-wood-industry-prices","tag-estonia","tag-log-prices","tag-pine","tag-spruce","topic-forestry","topic-industry-prices","topic-pulp-paper","topic-sawmilling","area-europe"],"acf":[],"yoast_head":"\nEstonian log prices are heading for a fall this autumn - Timber Industry News<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.timberindustrynews.com\/ro\/estonian-log-prices-heading-fall-autumn\/\" \/>\n<meta property=\"og:locale\" content=\"ro_RO\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Estonian log prices are heading for a fall this autumn - Timber Industry News\" \/>\n<meta property=\"og:description\" content=\"As in many countries, there was an unprecedented log boom in the Estonian timber market during this year. 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