Price pressure in sawmilling industry shows short-term effect on softwood log sector

A number of Austrian sawmilling companies’ calls for marked reductions in prices for spruce/fir sawlogs have evidently been followed by some first contracts at a lower price level in the last few weeks. Price cuts of €5-6/m³ for the benchmark grade of L 2b/3a are being reported from Lower and Upper Austria, for example. According to information from forest owners, however, these price reductions only apply to existing price peaks, prompt deliveries, and short-term contracts with terms of one month.