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– In view of currently slack demand and low-priced offers of lumber, especially from Sweden, the sales opportunities for Russian spruce lumber have further deteriorated in central Europe recently. Demand is currently low in same areas due to holidays but business is also being described as slow in the German states in which the holiday season has already come to an end.
In some cases industrial planing works’ lumber requirement is currently a fifth lower than otherwise usual for this time of year, prompting companies to cut back their output. Besides slack demand, they also find themselves facing low-priced offers of Swedish planed products. As timber merchants mostly order planed products at short notice and as their needs dictate, longer-term production planning has become more difficult. At the moment there are no signs of demand for lumber picking up noticeably in September. Instead, market players have already expressed concern that business might slow again in the fourth quarter after a slight upswing in September.
Low demand is currently coinciding with an inflated supply of Russian lumber. As lumber sellers see it, the pressure on Russian sawmills to sell has increased recently because their stocks of finished lumber have reached a comparatively high level. Stock levels have risen because output is mostly higher than the volumes being sold. In an effort to run down stocks, lumber is currently being shipped out several weeks ahead of the agreed dates in some instances. Owing to unsatisfactory sales opportunities, one or two companies in the southern section of northwest Russia have also reduced or halted their cutting operations.
In addition to slack demand, Russian sawmills’ decreasing ability to compete with Scandinavian companies is causing sales volumes to fall in central Europe. An inadequate difference in price between Scandinavian and Russian lumber is the reason why buyers are still showing a preference for Scandinavian products. When buying in Scandinavia, the required assortments can be ordered by the lorryload. Although lorry deliveries are being from Karelia, the Leningrader region, and from Vologda, buyers have recently appeared to be dissatisfied with the sorting of the lumber supplies. Full or part loads are delivered by ship from Archangelsk, though the number of buyers in central Europe possessing facilities for unloading ships directly has been decreasing continuously in the last few years. Transport from the North Sea ports to buyers further inland in Germany is not possible for cost reasons, however.
In the UK and the Benelux countries, demand for Russian lumber is stable and the second quarter’s level.
Prices for rough-sawn northern Russian spruce in central Europe span a range of €203-207/m³ CIF northern continental port. The average price is €205/m³. Rough-sawn pine is fetching approximately £180/m³ CFR in the UK.
31.08.2011
Roundwood/Sawnwood
- Prices for eastern Siberian larch lumber remain largely stable in August despite holiday season
- 10 % reduction registered in Russian lumber exports
- Felling in Russia in July 2011 lower than in June
- Northwest Russian spruce lumber continues to lose market shares within Central Europe
- Latvian roundwood exports increased by as much as 26.1%
- Felling practically no longer hampered by forest fires
- Finland: Growth recorded in softwood lumber output until June
- United Business Media takes over Ecobuild
- Finland: Log deliveries still below last year‘s level
- Softwood lumber shipments down in North America in the second quarter
- Further growth in softwood lumber output until March
- Brisk demand for logs keeping price situation largely stable in Austria
- Hardwood lumber markets in UNECE revived slightly in 2010
- Lumber exports recovered in second quarter 2011
- Structural panels production declined again in Q2
Wood products
Wood-based panels
- Latvian plywood exports still higher than this time in 2010
- Demand for radiata pine plywood bounces back slightly after summer holidays end
- FFIF: Finnish plywood output grew again
- North American OSB manufacturers enjoy significant increase in exports
- North American composite panels producers‘ capacity utilisation rates stay low
- Slowdown in deliveries continued in second quarter
- GreCon wood-based panels seminar in Hanover
- Demand for MDF/HDF has undergone slight post-holiday revival since mid-August
- IHD Dresden holding ninth wood-based panels colloquium
- Summer reductions push OSB prices below last year‘s level again
- Slump in German particleboard exports persists
Furniture
- Demand for bathroom furniture remained brisk in July/August
- Fittings manufacturers anticipate possible renewed downturn in export markets
- VdDK members‘ order value up 5% in first half-year 2011
- Kitchen furniture industry sales 6% up on last year until June
Building products
Construction
- Housing construction again shows satisfactory trend
- Japan: Residential building increases by 5.8 % in June
Trade
Companies
- Lammhults: Office furniture segment improves turnover
- Slovenian furniture producer Javor Pohištvo bankrupt
- Javor Group: Another subsidiary files for bankruptcy
- Alno granted initial loan of €3m by Müller‘s Comco
- Forte enjoys strong growth in Q1 revenues and profits
- Eggerath: Business operations continue with work force of 60
- Kinnarps Deutschland bundles production in Worms
- Looser: Results forecast for 2011 corrected downwards
- Klostermann Küchen still up and running for time being
- Lowe’s: Turnover and result stabilising again
- Home Depot recovers again in the second quarter
- BlueLinx: Downward trend continues in Q2
- Temple-Inland: Timber business continues to operate at a loss
- IP: Take-over offer now extended until September
- Metsäliitto: Paper activities impose a strain on result
- Start-up in Braviken imposes strain on Holmen result
- Kurekss new sawing line starts up in fourth quarter
- Södra: Fire causes stop in production at Mönsterås
- Lafarge divests itself of gypsum operations in Asia
- Delignit: Results back in the black in first half of 2011
- Rougier books slowdown in revenue growth
- Pfleiderer Grajewo improves result again
- Gascogne records increased turnover in the first half year
- Uzin Utz shows further growth in turnover and result
- Roseburg to close two plants in South Carolina
- Resopal improves turnover by 17% in first six months
- Raute back in the black in the second quarter