Pressure particularly weighs on accrual goods
As far as sales go, it can be observed that pressure is primarily on accrual goods. July again saw slight price declines. While in Germany and Austria, felling also continues in August, Austria's main customer Italy is on Ferragosto break. Demand from the south started ebbing away in July already. Customers' expectations for the fall are clear: even lower prices.
In terms of main/order goods, demand is quite good. Here, the strong volume demand for almost all further processing products has a stabilizing effect. The oft-mentioned exception to this rule are structural timber (KVH) raw products which cheapened considerably.
Significantly worse than last year
The focus on the roundwood market situation of all market participants is unwavering. The assessment of Austria's forestry protection situation grew much worse than last year. The mass reproduction of bark beetles seems to have gained another 100 m of altitude. This means that the current line has reached 700 meters above sea level; a certain fatalism has started manifesting.
Roundwood prices saw yet another decline in both southern Germany as well as Austria in July. For Austria, prices are ranging from €69 to 80/sm³ which is €2/m³ less than in June. In Bavaria, the majority of wood is sold for €66 to 78/sm³ (€-1/sm³), and €67 to 80/sm³ (-50 cents/sm³) in Baden-Württemberg.
The strong accrual of saw mill residues in combination with a price decline is hard on sawyers. As a result, Austrian proceeds for wood chips (-50 cents/loose cubic meter) and sawdust (-60 cents/loose cubic meter) declined towards the 3Q. However, the price level for both wood chips and sawdust is still far above the levels in Germany and Czech Republic.
The months of September and October will pose a challenge with the planned inspection shutdowns in Pöls, Laakirchen and Frantschach. Papierholz Austria and renowned suppliers report that adequate buffer stocks are being set up.
