Timber Exchange trade statistics June of 2024

2024 07 12

In June, the State Forest Enterprise (SFE) announced 169 auctions. A total of 115,58 thousand solid m³ of timber products were offered. Compared to May, the volume of timber offered decreased by 30% and the volume sold decreased by 40%. The auctions were organised by 25 VMU units.
The SPOT Wood Index recorded an index value of EUR 53,62/solid m³. Comparing the index value with the same period last year, an increase of 3% can be observed. Compared to the previous month, the index increased by 5%.
Significant price changes were recorded:
- The price of saw logs (birch, spruce, pine) in the B/C grade rose by 6%, from EUR 84,50/solid m³ to EUR 89,77/solid m³.
- The price of the packing logs (deciduous, coniferous) grade fell by 11% from EUR 50,97/solid m³ to EUR 58,02/solid m³.
- The price of the felling residue rose by 8%, from EUR 26,08/solid m³ to EUR 28,15/solid m³.

BALTPOOL Timber Price (SPOT) Index

Trade in TOP timber assortments in ETTS short-term auctions

Trade in TOP assortments in ETTS short-term auctions

Assortments		Quantity, solid m³	Change in quantity per month	Quantity percentage in the scope of TOP 5 assortments	Price, Eur/solid m³	Change in price per month	Change in price per year
Baltpool Timber Spot index	Index	67 385	-68%	52.1%	52.74	4.8%	-35%

	PJ (spruce, pine, birch); B/C; St,Vd; L2, L3	6 465	-2%	10%	89.85	6%	15%
	PJ (spruce, pine, birch); D; St,Vd; L2, L3	13 070	5%	19.4%	70.09	4%	28%
	TR (deciduous, conifers)	15 595	-34%	23.1%	57.90	12%	6%
	PP (spruce, pine, birch)	12 915	-52%	19%	55.42	2%	3%
	PM, ML (class II and III calorific value)	19 340	54%	29%	38.87	2%	-21%
Felling residues, covered felling residues		2 100	-60%	3%	28.15	8%	-17%

Trade in regional units of the State Forest Enterprise in short-term auctions

Timber assortments sold at ETTS short-term auctions

Abbreviations:

KA – felling residues; KAD – covered felling residues; KAK – felling residues at cleared space; KL – hard leafy short timber; ML – firewood; PM – panel timber; PJ – sawn logs; PP – pulpwood; TR – packing logs; St – large-sized timber, small-end diameter ≥32 cm; Vd – medium-sized timber, small-end diameter 20-31 cm; Sm – small-sized timber, small-end diameter ≤19 cm; L1 – assortment length class, ≤2.9 m; L2 – assortment length class, 3.0 – 3.9 m; L3 – assortment length class, 4.0 – 6.0 m; L4 – assortment length class, 6.1 – 8.9 m.

Global timber market

In June 2024, the timber industry confronts various challenges and regulatory changes, reflecting a dynamic landscape influenced by market forces and environmental concerns.

Decline in European Softwood Production
European softwood production has seen a significant decline, falling by 6.4% in 2023, with further decreases expected in 2024. This downturn is observed across all major producing countries within the European Organisation of the Sawmilling Industry (EOS). Factors such as high raw material prices and reduced sawnwood prices contribute to a challenging market environment. Despite these challenges, there is a hopeful outlook within the industry that the market might stabilize, with some sawmills finding relief through increased deliveries to the U.S. market.

Plummeting Lumber Prices
Lumber prices have dramatically dropped to levels last seen before the pandemic, reflecting a stark reversal from the highs of 2021 and 2022. This decline is attributed to a significant reduction in U.S. housing affordability and a slowdown in home renovations, which have curtailed demand for lumber. The industry faces a glut as sawmills ramped up production based on overly optimistic demand forecasts, leading to what some experts describe as a “hangover” from the lumber price boom.

US Challenges EU Deforestation Regulation
The U.S. government has expressed concerns over the upcoming implementation of the EU Deforestation Regulation (EUDR), urging a delay due to significant challenges for U.S. producers. Key issues include the absence of a finalised EUDR information system and comprehensive implementation guidance, which complicates compliance for U.S. exporters. This situation could potentially disrupt trade and have adverse economic impacts if not addressed before the regulation’s enforcement.

Internal EU Calls for EUDR Delay
Within the EU, there is growing consensus among member states and industry groups about the need to delay the implementation of the EUDR. Concerns center around the regulation’s practicality and the tight deadline for compliance, which could impose severe burdens on the wood-processing industries. Recent discussions have highlighted the necessity of extending deadlines and reducing bureaucracy, especially for producers in regions with no significant deforestation risks.

EU Adopts New Nature Restoration Law
The EU has adopted a groundbreaking Nature Restoration Law, setting legally binding targets for restoring ecosystems across the continent. This ambitious legislation mandates that EU countries improve the condition of various natural habitats, with specific targets set for 2030 and 2050. Despite some concessions to the agricultural sector, the law aims to enhance biodiversity, protect old-growth forests, and respond to environmental pressures exacerbated by climate change and increased biomass demand.

These developments in June 2024 illustrate the complex interplay between economic pressures, regulatory responses, and environmental stewardship within the global timber industry.