Further decreases in prices
In May, log prices fell by 3 to 6 €/m³. In Austria, the majority of spruce/fir logs B, 2b are sold for 68 to 75 €/m³. Compared to April, this is a further decrease of 3 €/m³.
“Stormy ladies of the winter”
The pressure on prices is even higher in Southern Germany. In terms of quantities, the spring storms, which damaged 1 million m³ of wood, were seriously underestimated. Many times this volume could be put on the market in case of further storms – directly or indirectly via logging for realignments. In many places, the removal of damaged wood has been completed. Now, an increasing accumulation of beetle-damaged wood is expected. Recent rainfalls only slowed down bark beetle activity. The fourth year of drought is starting and the decrease in soil moisture remains a serious problem after the past winter.
In Germany, it is expected that certain softwood forests (mostly spruce forests) in the calamity hotspots will have to be “abandoned”, i.e. the composition of tree species will have to be changed. As of yet, however, putting a stop to the spread of bark beetles is the main goal. Weakened trees are “removed and not left standing” – partly at sales prices which are lower than harvesting costs.
6 €/m³ decrease in prices
According to research by Holzkurier’s editorial team, Bavarian log prices range from around 60 to 70 €/m³ in May. The month-on-month variation is quite considerable with a fall of 6 €/m³ compared to April. In Baden-Württemberg, a similar decrease can be observed in May (60 to 65 €/m³). In this state, two very big deals with Austrian timber companies had an influence on prices. Supposedly, the level agreed in those two contracts is considerably lower than current prices.
In Bavaria, price negotiations between the Bavarian State Forests BaySF and their major customers are starting again. The goal of the seller should be to keep prices stable.
Despite a fall in prices in China, the loading of logs in containers goes on uninterrupted. In spite of earnings which are partly below actual costs, loading is done on a large scale. At the beginning of the year, German softwood log exports doubled to more than 800,000 m³ in the first quarter. In March, however, a considerable decrease in shipments to China was recorded.
In Austria, the month of May was partly characterized by political attempts to increase the acquisition of domestic wood. The Lower Austrian timber industry agreed to buy an additional 200,000 m³ of damaged wood from Austria until the end of May and to process more domestic damaged wood in the future. Furthermore, in Upper Austria additional storage capacities of 350,000 m³ are to be permitted and created by the end of the year in order to take pressure off the market.
