The extended temporary shutdowns of sawmills have led to a further decrease in sawlog purchases. At the same time, the availability of damaged wood has increased. As a result, the pressure on log prices is higher. According to the Holzkurier’s survey, the prices of these types of log wood fell sharply again in August, and are now at least €10/m³ lower compared to the peak in June, bringing them gradually closer to the €100/m³-mark.
Log price fell in August
In Austria, prices are ranging, on average, from €105 to €115/m³ in August. Compared to July, a decrease of €10/m³ was recorded. Sluggish demand in particular leads to falling prices.
Damaged wood from Austria to China
This year, too, East Tyrol and Upper Carinthia are the damaged wood hotspots in Austria. In the two regions, the processing and removal is an enormous challenge due to the partly difficult terrain. In addition, forest owners there are struggling with high removal costs and poor sales opportunities. China is being discussed as a potential buyer – not of the usual 11.8-meter-long log wood, but of dimensions of “4 m, 4 m, 3 m” for the transport in containers.
The recent severe thunderstorm with hail and heavy rain in the district of Villach added to the problem. Just a few weeks after this extreme weather event, pine trees are reportedly dying on a larger scale. On August 18, a ferocious storm hit the south again and caused several hundred thousand cubic meters of damaged wood in Carinthia alone. Similar damage is expected in Styria as well.
Increase in damaged wood
In Germany, the bark beetle calamity is deteriorating, while cutting capacities are being reduced at the same time. According to the Holzkurier’s survey, prices have also fallen significantly. In the south of Germany, spruce/fir log wood, B, L2b, currently costs between €97 and €111/m³. Especially in the negotiations about long-term purchases, which are currently being conducted, there are differences of opinion about whether to set-digit two or even three-digit spruce/fir prices from September.
