The current situation in the German timber market is still fragile, largely dependent on the growing demand for timber brought by the construction industry. The current decline in overall domestic lumber prices in Germany is not as pronounced as it has been recently feared \u2013 mainly because industrial wood and energy wood prices have remained stable.<\/p>\n
The immediate reason for the decline in lumber prices is the lowered growth expectations for the construction industry amid high interest rates and high inflation. Demand for lumber and other building materials is falling sharply in anticipation of declining growth. As a result, prices are also under pressure - both for timber wholesalers and forest owners, as sawmill warehouses usually have sufficient stocks.<\/p>\n
German softwood lumber prices fell by almost 21% in September compared to last year, according to the German Federal Statistics Office. Prices are also down almost 5% compared to the previous month (August).<\/p>\n
The market for hardwood is better than softwood, with prices down only 5% month-on-month, but still 19% higher than the same period last year. The price trend for other building materials made of wood, such as fibreboard, was little changed, falling compared to previous months but still significantly higher than the same period last year.<\/p>\n
Softwood log prices - especially spruce - are far from their mid-year highs. However, spruce prices were able to stabilize to some extent in the fourth quarter of this year, even if they were around 15% to 20% lower than in the summer.<\/p>\n
In terms of specific prices, freshly felled spruce logs of grade 2b are sold this autumn between EUR 90\/m3 and EUR 105\/m3. Longer Spruce logs, grade b are being traded at 105 to 110 EUR\/m3. Discounts for bark beetle wood are still high at 20 to 25 EUR\/m3, with prices mostly between 65 and 75 EUR\/m3.<\/p>\n
On the other hand, the price of pine fell only moderately and sometimes remained stable. Pine logs, 2b grades are quoted at 70 to 75 EUR\/m3.<\/p>\n
The price of pallet wood is also relatively stable. According to the statistics of the German Forest Owners Association, the average price is 60 euros per cubic meter. Pulpwood prices have risen sharply. Certified, freshly felled pulpwood costs up to 42 EUR\/m3.<\/p>\n
Overall, the situation in the timber market is still very fragile, and certainly much depends on further developments in the construction industry \u2013 and the demand for timber from there. Regardless, the German Forest Owners Association reports that the sawmill's storage area is mostly filled with fresh spruce logs.<\/p>\n
With economic forecasts looking dire and construction activity falling, German forest owners are often limited to short-term contracts with sawmills. This could also lead to further price corrections in the coming months.<\/p>","protected":false},"excerpt":{"rendered":"
The current situation in the German timber market is still fragile, largely dependent on the growing demand for timber brought by the construction industry. The current decline in overall domestic lumber prices in Germany is not as pronounced as it … Continue reading