Prices cut for the first time
The phone calls made during the last few days were different from those in previous months. For the first time, there were price cuts and announcements about planned increases in September were taken back on a relatively short notice.
Four-figure prices are probably a thing of the past now. The price lists for both S10 roof battens and glue-laminated timber have been revised to less than €1000/m³. Prices of roof battens, in particular, have ranged from around €400 to over €1000/m³ lately. This shows how out of joint the market is at the moment.
Possibly months of stable prices
As for glue-laminated timber, well-known producers have cut prices. They extended the August prices beyond that month. This was done in response to a demand by timber construction companies for better predictability. July prices could therefore be valid for one quarter or even longer.
Lumber prices for August/September deliveries were cut as well. In part, producers charged at least €600 for raw wood for KVH and glulam. However, most processing companies no longer wanted to pay those prices anymore. In June, Holzkurier identified a price range of €470 to €525/m³ for glulam laminations in Germany. Compared to May, this is a further increase of €75/m³.
€1000 only for short-term orders
In Italy, glulam cost between €750 and €850/m³ in June, according to Holzkurier’s research. As for the third quarter, prices of around €1000 had been announced. However, such prices are probably going to be charged for short-term orders only.
So far, the difference in prices on the Central European and the US market was the main argument for the increases. Now, after US prices practically halved compared to the record highs in May, this particular “Sword of Damocles” no longer exists. The US market is changing rapidly and it is not clear whether prices will remain at the current lower levels. In any way, the difference between European and US prices should not be so substantial anymore.
Can returnees help ease the market situation?
In the medium term, lower US prices could somewhat ease the situation on the Central European KVH raw wood market. However, some KVH raw wood specialists focused more on the US in 2020. They cannot and will not return immediately due to contracts, but there should be a noticeable change in the fourth quarter. The raw wood supply will remain a challenge for some time to come. Raw wood currently costs around €540/m³, with prices varying by €50/m³. In June, there was another price increase of €90/m³ compared to the previous month. In Germany and Austria, solid structural timber prices range from around €495 to €810/m³ across all dimensions, with Austria being closer to the lower end of the scale.
