Less damaged wood, higher prices
The driver of this development was the smaller overall volume of damaged wood that accumulated in large parts of Germany, the Czech Republic and Austria last year. Despite a reduction in cutting in the three countries, log wood was and still is in short supply, which results in higher prices. Compared to December, increases in softwood sawlog prices ranged from €2.5/m³ in Austria to €4.5/t in Bavaria. Thus, fresh log wood cost between €106 and €113/m³ in southern Germany and Austria.
In Central Europe, a mixed calculation involving the regular price for fresh log wood and the price of damaged wood was established due to the supply of damaged wood over the past seven years at least. Now, that supply is substantially smaller, and many sawmills feel that this amounts to an additional price increase. Accordingly, many of them prepare for a double-digit increase in the log price within the next few months.
Bavaria followed suit
In January, Bavaria was the federal state with the most dynamic price trend. “Log prices rose by €5/m³ within just five or six days,” a timber industrialist analyzed. With Bavaria following suit, there is now a very uniform log price level from the Rhine in the west to the March river in the east.
“Despite a marked increase in the lumber price, there is no doubt that the log price is rising at a steeper rate,” another market participant commented. Both recognize the necessity for further increases in the lumber price in February. For the two market participants, the alternative would be a further curtailment of cutting starting in March.
Searching for a price structure
In northern Austria, log prices range from around €111/m³ (farmer-owned forests) to €115/m³ (large private forests) ex forest road. Buyers complain that there is “currently no uniform price structure” – neither in purchasing nor in sales. In February, prices are expected to rise again. Market observers feel that they see few log piles along forest roads considering the season and the favorable weather conditions. The key question is: Who will lose their nerve when they receive less wood?
“Tyrolean price” in Bavaria
In Bavaria, the term “Tyrolean price” is increasingly circulating. This term refers to the €108/m³ that large timber companies pay in Tyrol and that they were willing to pay in Bavaria at the time of the latest price survey. In late January, forestry associations were negotiating the prices for February and March, which were much higher than €108/m³. In Baden-Württemberg, too, a further price increase was recorded. The Holzkurier identified an increase of around €3.5/m³, meaning that log prices there range from €107 to €113/m³. In the southern part of the Black Forest, prices partially exceed this level.
Sawmill byproduct prices up in January
At the start of this year, the Holzkurier saw a slight increase of 10 cents/st in the price of wood chips in Austria, which brings the price level to €14.3 to €16.1/st. Sawdust prices rose by 50 cents/st compared to December and now range from €12.3 to €13.4/st. Much bigger increases are reported from the southern Germany.
