Log prices, too, rose sharply in September. In Baden-Württemberg, they were 7% higher than last year, in Austria, they were up by 9%, and in Bavaria, a 10% increase was recorded. In September, prices ranged from €91/m³ to €108/m³, with both peak prices being reached in Bavaria.
Log price keeps rising
In the fourth quarter, forest owners in southern Germany and Austria want to raise prices again. “No less than €100/m³” seems to be the motto for spruce/fir, B, 2b. However, it remains to be seen whether forest owners will actually achieve their goal.
The overall volume of beetle-damaged log wood is unusually small compared to last year. Recent storms did cause some damage in forests, but most of the affected trees were snapped and are therefore not suitable for sawing. Accordingly, processing companies mostly receive offers for fresh log wood at the moment. Log wood for non-visible quality glued timber or for US or MENA-specific products is in short supply.
Prices for sawmill byproducts “too low”
Processing companies complain that it is not possible to produce lumber in profitable way with these log prices. In addition to the lumber prices, which are described as unsatisfactory, the “disastrous” prices for sawmill byproducts, in particular, are causing discontent. For example, the sawdust price in Austria has been 44% lower than in the previous year.
When it comes to lumber, price increases were recorded in September. In Italy, prices for raw planed timber recently rose by 10 €/m³. Given the strong demand from processing companies, further increases of €15 to €20/m³ are expected in the fourth quarter.
As for fresh sideboards, the Holzkurier identified an increase of €4/m³ in Italy this month. Large suppliers plan to raise that price by a further €5/m³ sometime during the fourth quarter.
Manufacturers of glue-laminated timber also managed to raise prices in September and they, too, have announced further increases for the fourth quarter (see article After +€7/m³, now €520/m³ for glulam).
CLT market with an overnight upswing
The comeback of cross-laminated timber is particularly noteworthy. After sluggish demand at the beginning of this year, there was a turnaround within just a few weeks. Nevertheless, the industry still suffers from the prices agreed during the weak phase. The pickup in demand, which started in May, has prompted many producers to plan the introduction of another shift for 2025. Given the large number of new production sites, the key to success in 2025 will once again be a balanced supply.
Outlook for the fourth quarter:
Log wood: Volumes of beetle-damaged wood much smaller than in previous years. Despite reduced cutting, log wood partially in short supply – especially lower quality log wood. For fresh wood spruce/fir, B, 2b, the forestry sectors in German-speaking countries are aiming for prices above the €100/m³-mark.
In 2024, log prices have become more or less uniform across Europe for the first time ever.
Lumber: Increases of €15 to €20/m³ for main lumber grades for further processing planned for Q4. Products for the packaging sector in demand especially in Germany, at rising prices. Increase in sideboard prices in Italy probably possible at a lower level (+€5/m³).
Scandinavia: Scandinavian lamella prices still more or less at around €300/m³. Glulam industry in continental Europe needs goods for Q4.
Lumber/global market: Increase of €25/m³ in US prices along the East Coast in Q3; prices still €50 to €60/m³ too low to make a profit on the US market with European log wood.
Glulam: supply and demand almost balanced; after an increase of €5/m³ in Q3, further increases possible in Q4 (up to +€30/m³).
CLT: strong demand for volumes which were delivered at the low H1 prices in Q3. Demand should remain stable in Q4, therefore opportunity to raise prices substantially.
Everyone wants beetle-damaged log wood because it is cheap enough to make lumber prices adequate. But there is hardly any coming onto the market.
Truck freight rates from north to south have become much more expensive because there is hardly any return freight from Italy.
The September price lists have had little effect in Italy. No one is buying more lumber or makes their purchases earlier.
When it comes to pellets, we will soon have a problem with logistics in Italy rather than with quantities. There is not enough capacity to meet the coming demand.
