Lumber prices in Middle East and North Africa (MENA) markets are declining as supply chain disruptions and sharply higher freight costs weigh on trade.<\/p>\n
European softwood lumber is currently offered at around \u20ac300\u2013330\/m\u00b3 ex-mill, broadly unchanged compared with previous months. However, logistics costs have increased markedly. War-risk surcharges of about \u20ac50\u201360\/m\u00b3, combined with base freight of \u20ac40\u201350\/m\u00b3, are pushing total transport costs to roughly \u20ac90\u2013110\/m\u00b3. In some cases, additional insurance premiums and port-related costs add a further \u20ac5\u201310\/m\u00b3, depending on destination and route.<\/p>\n
This raises typical delivered price indications to around \u20ac380\u2013420\/m\u00b3 CFR MENA, with higher levels for better grades or smaller shipment volumes. These price levels are meeting resistance, particularly in price-sensitive markets.<\/p>\n
As a result, transaction levels are moving lower. Business is increasingly concluded at around \u20ac320\u2013360\/m\u00b3 equivalent, with occasional deals below this range for lower grades or distressed cargoes. Planed material and higher specifications continue to achieve somewhat firmer levels, but are also subject to increased negotiation. Discounts of \u20ac10\u201330\/m\u00b3 compared with earlier offers are becoming more common.<\/p>\n
Demand across several MENA countries has weakened, limiting purchasing activity. Importers are reducing volumes, delaying orders or switching to shorter-term buying. In some cases, previously agreed shipments are being renegotiated or postponed.<\/p>\n
At the same time, shipping conditions remain difficult. Transit times have lengthened by up to one to two weeks on certain routes, while vessel availability is more limited. Some shipments are being rerouted, increasing fuel consumption and overall freight exposure. The combination of longer delivery times and higher costs is complicating planning for both suppliers and buyers.<\/p>\n
The increase in delivered costs is not being absorbed by the market. Instead, the higher freight component is translating into pressure on net prices for the product itself. This is particularly visible in standard construction grades, where competition is strongest.<\/p>\n
With reduced intake from MENA destinations, volumes are being redirected to other regions, including intra-European markets and parts of Asia. This is increasing supply availability in those markets and contributing to more competitive pricing conditions.<\/p>\n
Overall, the combination of \u20ac90\u2013110\/m\u00b3 freight costs, extended delivery times and weaker demand is resulting in lower effective transaction prices for lumber sold into MENA markets, despite relatively stable ex-mill price levels in Europe.<\/p>","protected":false},"excerpt":{"rendered":"
Lumber prices in Middle East and North Africa (MENA) markets are declining as supply chain disruptions and sharply higher freight costs weigh on trade.<\/p>","protected":false},"author":1,"featured_media":98586,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"inline_featured_image":false,"footnotes":""},"categories":[5204,4714],"tags":[],"class_list":["post-98585","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-daily-news","category-wood-industry-prices","topic-forestry","topic-industry-prices","topic-lumber","topic-sawmilling","topic-wood-products","area-africa","area-global"],"acf":[],"yoast_head":"\n