Timber trade

Further construction boom

Article by Georg Jung, translated by Susanne Höfler | 28.05.2019 - 15:51

Both the further developments in structural timber construction and politics' intent to use more timber also in public construction generally foster the sector's further upswing which also benefits timber trade. Naturally, also the prestige advertising campaigns by proHolz and Holzcluster contribute to increasing "wood awareness" and the creditable positioning of training center Kuchl as the wood sector's cadre factory opens up many a future prospect for our sustainable construction material.

A slightly different situation can currently be observed for exports. The disproportionately heavy natural disasters from pest infestation to widespread windthrow and a looming demand decline lead to a completely topsy-turvy mix of prices and volumes for the timber trade industry, in particular the packaging sector. In the two years, production companies globally benefitted from high demand and therefore could place their volumes easily on the markets with ever-increasing prices. This beneficial balance between supply and demand currently seems to be flipping over, and a surplus of cuttable and cheap raw material comes upon stagnating to declining markets. Realistic purchase planning for the trade sector won't be possible until a relatively stable pricing screen and an adjustment to the respective current demand have been reached. It is imperative to act with utter caution and on a last-minute basis. It remains to be hoped that the broad range of further processed and refined wood products can more or less maintain its hard-earned price level.

Georg Jung, Salzburg