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Sawn Timber © Nöstler

Can peak year 2016 be beaten?

Article by Gerd Ebner, translated by Susanne Höfler | 19.05.2017 - 10:38

Last year was a promising precursor for 2017. This year still has to live up to that expectation.

Gerd Ebner

Same workload as in 2007

Machine suppliers are proudly presenting their most recent installations. The workload of individual suppliers is equalling the boom of 2007.
So everything's all sunshine and roses? Not quite. After a very good 2016, expectations for the current year are: "Things will get even better." But 2017 still has to live up to that promise. Not for all products a constant increase in demand could be observed. KVH for instance got off to such a cautious start that the Association of German sawmill and timber industry started wondering whether "this can still be made up for in the course of the year."

Everything in the black

All fourteen pricing screens that serve as the basis for Timber-Online's sales indicator show a plus compared to 2016. The fact that US prices exceed last year's level by no less than 34% also indicates that overseas markets are going strong.

Logwood up to +8 %

The limitations for sawyers and further processors: Logwood prices increased as well – in Baden-Württemberg by +3%, in Austrai +5% and in Bavaria +8% in April 2017. To yield a similar operating result as last year, product prices have to increase even more. And Far Eastern overseas markets are much more difficult to reach due to the doubling of transport charges for containers.

Everybody is headed for the Ligna

According to the most recent Timber-Online business survey, two thirds of the interviewed readers are attending the Ligna - yet another sign for the fact the investment backlog is finally starting to dissipate. Only a fourth of the respondents believes that the willingness to invest is low. 13 months ago, still 80% of respondents gave that answer.