Timber Exchange trade statistics May of 2024

2024 06 12

In May, the State Forest Enterprise (VMU) launched 151 auctions. A total of 1 056,05 thousand solid m³ of timber products were offered. Compared to April, the volume of timber offered more than quintupled and the volume of timber sold increased by 543%. The auctions were organised by 25 VMU units.
The Timber SPOT Index recorded an index value of EUR 56,75/solid m³. The index value shows a drop of 7% compared to the same period last year. Compared to the previous month, the index rose by 10%.
Significant price changes were recorded:
- The price of saw logs (birch, spruce, pine), grade D, rose by 7%, from EUR 62,70/solid m³ to EUR 67,12/solid m³.
- The price of packing logs (deciduous, coniferous) grade fell by 11% from EUR 57,15/solid m³ to EUR 50,97/solid m³.
- The price of felling residue rose by 12%, from EUR 23,30/solid m³ to EUR 26,08/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	111 255	-15%	38.5%	52.74	4.8%	-35%

	PJ (spruce, pine, birch); B/C; St,Vd; L2, L3	6 600	-54%	6%	84.50	1%	5%
	PJ (spruce, pine, birch); D; St,Vd; L2, L3	12 481	-32%	11.2%	67.12	7%	7%
	TR (deciduous, conifers)	23 725	26%	21.3%	50.97	-12%	-17%
	PP (spruce, pine, birch)	26 724	-12%	24%	54.50	-3%	-10%
	PM, ML (class II and III calorific value)	41 725	2%	38%	38.28	0%	-29%
Felling residues, covered felling residues		5 310	-44%	5%	26.08	12%	-5%

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 May 2024, the timber industry is seeing significant shifts in pricing dynamics, regulatory discussions, and strategic international efforts aimed at sustainable management and conservation of forests.

Rising Timber Prices in Finland
In Finland, timber prices have seen notable increases across all categories, with some species exceeding last year’s highs. The Natural Resources Institute Finland (Luke) reported that despite a 10% drop in sales volume at the beginning of the year, sales figures were still above the five-year average. Prices for spruce and pine logs have increased by about 4% from last year, with pulpwood prices setting new real price records. These price hikes are partly due to a biomass shortage in the Baltic region, following the ban on Russian and Belarusian wood imports, which has led to a disconnect between the costs of raw materials and the prices of finished products like lumber and paper.

Stabilising Pellet Prices in Germany
The German Pellet Institute (Depi) reports a stabilisation in pellet prices after a decrease earlier in the year. With prices now ranging from 265 to 291.81 euros per ton across different regions of Germany, there’s an expectation of a slight increase due to seasonal demand surges. This trend is significant as it indicates a potential shift in the market dynamics, influenced by supply-demand balances and delivery logistics as consumers stock up for the holiday season.

Polish Wood Industry Appeals to Prime Minister
The wood industry in Poland is actively engaging with government officials, pushing for a suspension of recent decisions on EUDR affecting forest management. Industry representatives warn that the proposed changes could lead to substantial economic and job losses, particularly in regions dependent on wood processing. They stress the importance of more comprehensive and participatory decision-making processes that consider economic, environmental, and social impacts.

Global Efforts in Tropical Forest Conservation
At a symposium in Tokyo, global leaders from countries with the largest tropical forests discussed the pressing need for increased investment and international cooperation to manage these critical ecosystems sustainably. The event underscored the challenges tropical forests face from human activity and climate change, highlighting the essential roles these forests play in biodiversity, climate stabilisation, and local livelihoods. The symposium, supported by organisations like the Japan International Cooperation Agency (JICA) and the International Tropical Timber Organization (ITTO), called for enhanced global efforts to preserve these vital resources.

In summary, May 2024 presents a landscape where timber prices are influenced by geopolitical and market factors, industry stakeholders are advocating for regulatory considerations, and international dialogues are focusing on the conservation and sustainable management of global forest resources. These developments suggest a complex interplay of local challenges and global strategies within the timber industry, emphasising the need for adaptive policies and cooperative frameworks to ensure the sector’s sustainability and growth.