Romanian recent auctions reveal higher prices for standing timber

Romanian recent auctions reveal higher prices for standing timber

In January, a new round of auctions for standing timber was held by the Romanian Forestry Agency (Romsilva), after the disappointing first auction held in December, where the national bidding ratio was 46%. The auctions are organized for Romsilva's -Romania's main forest land owner- planned harvest for 2019. 

At the first auction held in December, the buyers accused the too high starting prices at the auction - with an increase from 182 lei / m3 (38.37 Euro) at the auction organized for 2018, up to 190 lei / m3 (38.37 Euro) at the auction organized for the 2019 harvest. The auction price increase comes in the context of the generalized decrease prices in the Romanian wood market, low demand for both industrial wood and firewood.

The second round of auctions did not make any significant changes to the auction start prices, but the national auctioning rate increased to 61%, with an average bid price of 204 lei/m3 (43.01 Euro).

Basically, an additional volume of 942,279 cubic meters with an average price of 178.78 lei / mc  (37.69 Euro) was awarded in the second round of auctions.

The cumulative results    of the auction for the year 2019 production - publicly presented by the National Forest Administration - Romsilva after the second round of auctions in January, can be found in the tables below.

The second round of auctions organized by Romsilva recorded a significant decrease in average bid prices, with no significant increase in the total bid. Very low rates of adjudication were recorded in the counties where the forestry authorities did not understand that the starting prices at the auction should be reduced: Mures, Buzău, Calarasi, Dâmbovita, Iasi, Mehedinti, Timis, Valcea.

The data provided by Romsilva are not detailed by species, but we can appreciate that the volumes auctioned in the second stage of the auction are predominantly of the beech species, with the average price mentioned 178 lei/ m3.

It should also be noted that the total volume offered at the main auctions is approaching to 80% of the total volume of main products proposed to be harvested in 2019!

The volume of main products planned to be harvested in 2019 by Romsilva returns to normal with a total of 5.36 million cubic meters, compared to the volume of 6.76 million cubic meters planned to be harvested in 2018.

Cumulative results obtained at standing timber auctions in Romania for tRomsilva's planned harvest for 2019

# County (forestry agency) Volume offered Volume awarded Average buying price
- m3 - - m3 - - lei*/ m3 -
1 DS Alba 159.572 73.178 190.14
2 DS Arad 101.831 31.275 124.47
3 DS Arges 93.81 89.679 207.08
4 DS Bacau 282.928 260.525 188.5
5 DS Bihor 71.798 35.305 197.13
6 DS Bistrita-Nasaud 5.915 4.636 143.74
7 DS Botosani 42.348 42.348 259.21
8 DS Braila 67.778 37.886 123.41
9 DS Brasov 34.003 20.436 224.92
10 DS Buzau 64.352 5.807 228.89
11 DS Calarasi 51.493 0 0
12 DS Caras-Severin 329.222 230.108 174.43
13 DS Cluj 56.085 26.309 192.18
14 DS Constanta 33.088 17.218 153.19
15 DS Covasna 61.436 34.332 197.49
16 DS Dambovita 66.283 16.713 356.62
17 DS Dolj 106.347 76.761 155.01
18 DS Galati 16.773 13.986 197.72
19 DS Giurgiu 59.424 31.571 217.49
20 DS Gorj 122.634 64.402 198.42
21 DS Harghita 31.625 23.913 288.02
22 DS Hunedoara 241.097 143.072 168.27
23 DS Ialomita 54.773 51.089 159.5
24 DS Iasi 103.902 45.957 244.63
25 DS Ilfov 22.63 8.97 285.67
26 DS Maramures 144.933 80.327 188.34
27 DS Mehedinti 96.627 19.678 203.86
28 DS Mures 163.679 12.454 231.45
29 DS Neamt 271.921 258.999 198.49
30 DS Olt 49.083 30.554 204.36
31 DS Prahova 117.95 72.084 247.33
32 DS Salaj 34.251 15.203 173.38
33 DS Satu Mare 20.324 14.746 290.49
34 DS Sibiu 127.52 70.814 234.18
35 DS Suceava 396.823 357.964 258.76
36 DS Teleorman 19.356 3.307 407.76
37 DS Timis 133.627 38.718 201.09
38 DS Tulcea 71.096 63.351 143.1
39 DS Valcea 148.662 39.768 229.93
40 DS Vaslui 42.429 37.21 209.36
41 DS Vrancea 31.587 25.452 206.48
TOTAL 4.151.015 2.526.105 204.47
*1 Romanian Leu equals 0.21 Euro

Estimated standing timber harvest for 2019

# County (forestry agency) Planned volume Volume awarded Estimated available volume
- m3 - at auctions including reserve
- mc - - m3 -
1 DS Alba 141.643 73.178 68.465
2 DS Arad 137.369 31.275 106.094
3 DS Arges 110.928 89.679 21.249
4 DS Bacau 397.909 260.525 137.384
5 DS Bihor 57.126 35.305 21.821
6 DS Bistrita-Nasaud 24.736 4.636 20.1
7 DS Botosani 56.1 42.348 13.752
8 DS Braila 93.027 37.886 55.141
9 DS Brasov 45.271 20.436 24.835
10 DS Buzau 64.133 5.807 58.326
11 DS Calarasi 100.171 0 100.171
12 DS Caras-Severin 604.572 230.108 374.464
13 DS Cluj 74.992 26.309 48.683
14 DS Constanta 53.403 17.218 36.185
15 DS Covasna 59.957 34.332 25.625
16 DS Dambovita 70.658 16.713 53.945
17 DS Dolj 111.387 76.761 34.626
18 DS Galati 14.245 13.986 259
19 DS Giurgiu 80.829 31.571 49.258
20 DS Gorj 177.875 64.402 113.473
21 DS Harghita 30.549 23.913 6.636
22 DS Hunedoara 233.585 143.072 90.513
23 DS Ialomita 84.255 51.089 33.166
24 DS Iasi 129.736 45.957 83.779
25 DS Ilfov 30.178 8.97 21.208
26 DS Maramures 52.308 80.327 -28.019
27 DS Mehedinti 116.957 19.678 97.279
28 DS Mures 279.792 12.454 267.338
29 DS Neamt 341.221 258.999 82.222
30 DS Olt 60.075 30.554 29.521
31 DS Prahova 156.187 72.084 84.103
32 DS Salaj 38.94 15.203 23.737
33 DS Satu Mare 25.298 14.746 10.552
34 DS Sibiu 146.738 70.814 75.924
35 DS Suceava 546.805 357.964 188.841
36 DS Teleorman 28.357 3.307 25.05
37 DS Timis 156.138 38.718 117.42
38 DS Tulcea 156.894 63.351 93.543
39 DS Valcea 177.146 39.768 137.378
40 DS Vaslui 53.551 37.21 16.341
41 DS Vrancea 46.796 25.452 21.344
TOTAL: 5.367.837 2.526.105 2.841.732

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