Austrian and German softwood log prices ease

Softwood sawlog prices in both Austria and Germany have been in steady decline for about two years, reports Wood Resource Quarterly (WRQ). In the Q1 2016 they reached their lowest level since 2006 (in US dollar terms). Although less dramatic, prices have also trended downward in euro terms with average prices currently being 12% lower than two years ago.

Despite the recent price declines, sawmills in the two countries have some of the highest wood costs in Europe. Not surprisingly, imports from neighbouring countries have trended higher: Austria imported just over 6.5 million sm³ of softwood logs in 2015 and is on pace to reach closer to 7.5 million sm³ in 2016. Three countries supply about 85% of the import volume, namely the Czech Republic, Germany and Slovenia. The biggest shifts in log sourcing over the past ten years have been the sharp reduction in importation from Germany, while Slovenian imports have gone up from 180,000 sm³ in 2006 to 1.2 million sm³ in 2015.