Take what one can get
In Germany and Austria, sawmills distribute limited quantities of lumber to regular customers or those who pay the highest price. Weekly and monthly prices apply. The prices which are published now apply to the third quarter with further significant increases.
From month to month, an increasing number of market participants believes that demand will soon be saturated at least in Central Europe – and that the upward price trend will end. With every new week, one learns about construction projects which are not carried out as a result of the development of prices. However, it is impossible to predict when the market will actually be saturated. At the moment, the majority forecasts that this will happen “in the fourth quarter”. Until then, everyone apparently wants to take what they can get in terms of prices and quantities.
Supply chain and warehouses not yet filled again
Due to the DIY and timber construction boom in 2020, the warehouses of producers, retailers and timber construction companies have emptied. So far, it has been impossible to fill the much-cited “supply chain” again. Only noticeable drops in demand will probably change that.
Currently, there are major differences between Scandinavian and Central European timber companies when it comes to pricing and how long offers are valid. The Nordic companies are also operating in the US – nonetheless, their lumber prices are in some cases €200/m³ lower than those of Central European companies. While quarterly contracts apply in Scandinavia, producers in Central Europe set weekly and monthly prices. The Finnish-Swedish timber industry with strong Central European productions is currently acting very “Scandinavian” when it comes to sales. Their moderate price increases (quarterly contracts!) and delivery efforts are explicitly appreciated by customers.
