Historic prices in sight
Compared to the lowest price since 2006, which was recorded in July 2020, the log price has increased by €30/m³ (Austria) to €34/m³ (Baden-Württemberg). If prices continue to rise at this pace, a new record high will be reached in Austria and southern Germany in the third quarter. Another €7/m³ (Austria) to €11/m³ (Baden-Württemberg) are still needed to get there.
In Austria, the €100/m³ mark has been exceeded in some places. For the month of May, Holzkurier identified a price range of €90 to €102/m³. In Baden-Württemberg, log wood cost between €86 and €96/m³ (up €4/m³), and in Bavaria buyers paid €87 to €97/m³ (up €3.5/m³).
Supply situation slowly normalizing
For log buyers, availability is currently a bigger issue than prices. Although there was a significant easing of the situation in southern Austria in May, supply is only now starting to normalize. The wet weather helps forests, but it makes the ground and forest roads partly impassable.
An accumulation of significant quantities of beetle-damaged wood is not expected before mid-July. Up until then, sawmills describe their supply as not yet fully secured. As a result, some sawmills think about reducing the number of shifts in July. The high level of cutting in previous months also led to an increase in overtime and vacation time in the sawmills. It is possible that there will be longer shutdowns for maintenance in summer.
New demand for log wood – from Romania and China
The European log wood market has become an international market this year: “Chinese suppliers are driving prices at auction in France”, “€120 for pine logs in Poland due to international demand”, “Romania number 5 buyer of German softwood logs” etc. There are rumors that Chinese importers offer already €84 to €99/m³ for A/Cx logs in containers. German forest owners speak of interesting offers from China – At the same time, though, they emphasize that they want to ensure the supply of local sawmills. Especially since a length of 12.5 meters and a desired top diameter of 20 cm are not trivial.
The opposite of good is well-meaning
The “well-meaning” Forest Damage Compensation Act is now coming into effect in Germany – “at the wrong time”. As of yet, nobody knows what the repercussions of the prescribed reduction in logging will be.
