Ledinek_KVH.jpg

Konstruktionsvollholz © Lorenz Pfungen

germany / austria

Solid structural timber price on the fall in May

Article by Günther Jauk (translated by Eva Guzely) | 03.06.2022 - 10:14

Solid structural timber bars in particular are said to be very difficult to sell at the moment and when it comes to list goods, companies don’t buy even just one cubic meter more than they need. This is the general tenor in the solid structural timber sector. Manufacturers report that production has partly been adapted and that there are no lead times anymore.

In the market conversations, which the Holzkurier had with manufacturers of solid structural timber, the majority reports prices falling by €30 to €60/m³ compared to the month before. Based on this information, the Holzkurier identified a price of €500/m³ (bulk, average price of all dimensions) in May, with some manufacturers still charging around €530/m³, while others are selling their goods for less than €500/m³.

According to the manufacturers, this slump is mainly the result of the enormous demand in the first quarter. Merchants and bulk buyers filled their warehouses at the beginning of the year and are still selling those stocks. “Despite the marked decrease in recent weeks, we sold more solid structural timber from January to May this year than in the whole of 2021,” one German manufacturer said, who assumes that by the end of the year sales will have reached a level similar to that of previous years – just with a massive seasonal shift. Several of his colleagues agree with his assessment, since the customers’ order books are nearly full and material is needed. Some even report an increase in demand in the past two weeks compared to the total lull before.

Other manufacturers are much less optimistic in the face of the current market development and doubt that there will be a return to a functioning market already in summer. It is said that in many areas, such as the prefabricated house industry, there is sand in the gears and the developments are difficult to assess or predict.