- Since this product is produced almost exclusively for specific projects, end product prices could never keep up with increasing raw material prices.
- The drop in demand is leading to a lower price for CLT, too.
- Several new production sites started operating in the past twelve months.
While lighthouse projects, for which more than 1,000 m³ of CLT are used, are being carried out by the three industry giants, almost all of the other companies are fighting for so-called “small orders”. Lately, it is said that price reductions have increased in this area. Additional services, such as joinery, are offered at ever lower prices.
Prices lower than four years ago
The indexed CLT prices (100% = January 2019) fell below the 100%-mark in May and were at only 90% at the end of June.
Customers have orders but few new ones are placed
The order backlog of the German prefabricated house industry will last into next year. However, few new orders are said to be coming in.
When it comes to glue-laminated timber, the situation is similar in Italy and the DACH region – prices for raw wood are falling and demand is weak. In April, manufacturers still fought for prices higher than €500/m³. Soon, they will struggle for having a minimum price of €400/m³. In Italy, prices for bulk quantities of visible quality glulam now range from €440 to €465/m³ and are thus down by €30/m³ compared to May. In Germany, buyers pay €430 to €460/m³, which also corresponds to a month-on-month decrease of €30/m³.
Sales of solid structural timber (KVH) are still below a normal level. In combination with another reduction in the price of the raw wood needed to manufacture this product, this resulted in prices falling further. In June, the Holzkurier identified a price range of €285 to €330/m³ and thus a decrease of around €10/m³ compared to the previous month. Year on year, the price of solid structural timber is down by around 38% and is now at a level last recorded in August 2020.
