Timber Exchange trade statistics October of 2022

• In October, State Forest Enterprise (SFE) announced 70 auctions. They offered a total of 34.73 thousand. m³ of timber products. Compared to September, the amount of timber offered decreased by 14%, and the share of timber sold decreased by 47%. Auctions were organized by 23 units of SFE.
• The wood SPOT index recorded an index value of 86.48 Eur/solid m³. Comparing the value of the index with the corresponding period last year, a growth of 53% is visible. Compared to September, the index rose by 6%.
• Significant price changes were recorded in the assortment of packing logs and paper logs in October. The price of packing logs fell by 6%, from  97.06 Eur / solid m³ to 91.37 Eur/ solid m³, and paper logs rose by 4% from  86.34 Eur/solid m³ to 89.80 Eur/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

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

Inflation and the resulting rates are also felt in the forestry sector. This is confirmed by the financial results of the two largest forestry companies in British Columbia. West Fraser Timber Co. and Canfor Corp. reported third-quarter financials this week that showed both companies still making good profits from timber and pulp sales, but those profits fell from previous quarters as the U.S. construction of new houses is continuing to slow down. Both companies also report high log prices and bottlenecks in rail transport.

Timber prices in Germany are at unprecedented levels and continue to rise at lightning speed. This applies not only to logs, but also to paper logs, firewood and wood pellets. The reasons are varied: the energy crisis, the lack of raw materials and the war in Ukraine are the most important. The energy crisis and the shortage of raw materials are heating up the wood market in Europe. Russia’s reduced supply of pellets due to sanctions has caused a supply shock in Western Europe and the United Kingdom, sending prices up sharply.

European Union Deforestation Regulation (EUDR) soon European Union Timber Regulation (EUTR). However, a recent study found that timber importers are unprepared for the coming changes. It is likely that the EUDR will also impose mandatory inspection obligations on importers supplying goods to the European Union (EU) market for the first time. Such a requirement to confirm that due diligence has been carried out all the way back to the raw material source is likely to require changes.

In much of Central Europe, forests have recently been damaged by an outbreak of bark beetles. For this reason, the yield, timber production and log export temporarily increased. This beetle outbreak is expected to reduce Central Europe’s timber supply by 2030. New forest management practices aimed at reducing the risk of future outbreaks are likely to have long-term consequences for timber quality and availability. The importance of softwood sapwood in Europe is a key forest resource and supply for the timber products industry worldwide.