At the end of the year 2022, the Holzkurier’s sales indicator fell by another 5%, from 143% in November to 138% in December.
In December, pellet prices saw a double-digit percentage decrease compared to the previous month. According to official sources, sellers earned around €540/t in Germany and Austria. Unofficially, however, the price was already below the €500/t-mark. Nevertheless, these are still unprecedented price levels. Compared to 2021, an increase of 100% was recorded.
Log prices were and keep rising
As for log wood, there are signs that prices will continue to rise. There are various reasons for this. On the one hand, buyers are cautious and stock levels are therefore not very high. On the other hand, supply is limited. Small private forests in southern Germany and Austria are not particularly active when it comes to harvesting, and the same is true for large private forests. Companies reached their sales targets a while ago and reduced harvesting as a result.
There was also a change in logging. Significantly higher pulpwood prices make thinning profitable again. Consequently, more small-diameter log wood has recently been available on the market. “There’s a lack of bigger-diameter logs,” some sawmillers complain.
Little log wood from the Czech Republic
The log wood supply from the Czech Republic has basically come to a complete standstill. Price expectations there are at record levels similar to those recorded in Germany and Austria in the month of May 2022. Prices of spruce/fir sawlogs, B, 2b, are ranging from €100 to €114/m³ in the regions between the Black Forest and Lake Neusiedl, which corresponds to a decrease of around €15/m³ compared to May 2022. In 2023, many forest owners want to reach these peak prices again.
Will there be enough log wood?
That is the key question that could arise in April at the latest. In that month, the construction season starts and more log wood will be needed. In the market conversations, it became clear that market participants see supply as the biggest challenge in 2023.
