Further increases in prices for pellets, log wood, sawmill by-products, and lumber are decisive factors for this upward trend. However, the pressure on prices is not the result of higher demand, but rather of lower supply due to the ongoing log shortage.
Reduced cutting
Due to the limited log supply, many companies are reducing their cutting volumes. Fewer shifts, short-time work, and four-day workweeks are leading to a major decrease in production in all regions of Germany and Austria. Northern Germany is the only exception. There, log prices of €115 to €135/m³ indicate a temporary end to the price hike. In the other regions, an end of the upward trend is not yet in sight.
Lumber and glulam more expensive
In October, lumber prices have increased parallel to log prices. In Italy, fresh 17-mm sideboards sold for €230 to €245/m³ (delivered to Milan), and thus for €5/m³ more than in September.
In Germany, prices for glulam lamellas ranged from €320 to €335/m³ – a month-on-month increase of €7/m³. Glulam end products recently became more expensive by €8/m³. Buyers now pay €560 to €580/m³. Meanwhile, the price of solid structural timber remained constant, following an increase of €15/m³ to a range of €400 to €430/m³ in September.
Sawmill byproducts in high demand
Prices of sawmill byproducts, particularly those for sawdust, also increased strongly in October. The main reason for this is strong demand for pellets coupled with a tight supply of raw materials. In Austria, the sawdust price rose by 17% compared to the September. The Austrian pellet price was up by 7% and reached €333.6/t, while in Germany, an increase of 9% to €366.3/t was recorded.
