Further growth in sawlog prices in Austria in March

Brisk business activity on almost all sawn-softwood markets enabled the Austrian sawmilling industry, too, to utilise its cutting capacity largely to the full in the early months of 2022. The above-average output also entailed a significantly quicker reduction in roundwood stocks, however. In the latest timber-market report by the conference of presidents of the Austrian Chambers of Agriculture (LWK), sawmills’ stocks of softwood logs are said to be only average for March. From what value-adders say, some facilities’ stocks are even far below an otherwise usual level at the end of the main felling season.

Demand for softwood sawlogs had been high until recently. Forest owners have used the demand and the sharp increase in timber-harvesting costs to get the market to accept more price hikes. According to the LWK, the average price range for the benchmark grade of B/C L 2b spruce is €100-115/m³ ex forest. Market players, however, say that prices of €125-130/m³ are already being paid for spot lots available at short notice. As long as no roads have been barred for thawing and adequate freight capacity is available, wood put out for collection is being picked up and removed without delay. No significant stocks in forest depots are being reported from Austria either.

From the point of view of Austrian value-adders, a below-average supply of spruce sawlogs in the Czech Republic has also had the effect of driving prices upwards. Owing to internal restructuring measures and changes in personnel, the supply from both the Czech state forest business unit Lesy Ceské republiky (Lesy CR) of Hradec Králové and the administration of military facilities in the Czech Republic turned out to be considerably lower than expected at the beginning of this year. Value-adders are doing what they can to secure their roundwood needs from alternative sources, but the options are limited.

Hardly any unallocated volumes of softwood sawlogs are being offered in southern and central Germany either at the moment. Spot-market prices for B-grade L 2b+ here are also appreciably higher than on the domestic markets at €130/m³ ex forest.

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