Timber Trends Week 45: Log shortages behind increased price variety?

VonWood Weekly Timber Industry Newsletter

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Industry Overview:

This week, the wood and timber industry has seen a mix of strategic acquisitions, technological advancements, and market fluctuations. The ongoing global challenges, such as supply chain disruptions and geopolitical tensions, continue to shape the industry landscape, while innovation in sustainable building practices gains momentum. Notable developments include significant investments in production facilities, strategic acquisitions, and regulatory changes impacting market dynamics.

Market Updates:

The global timber market is experiencing notable volatility, with log and lumber prices expected to fluctuate until 2030 due to tightening supplies and changing geopolitical landscapes. Experts at the Global Wood Summit highlighted that while timber resources aren't disappearing, affordable sources are depleting, leading to potential opportunities for exporters like British Columbia as countries with limited domestic resources look abroad for lumber (Source: Timber Industry News).

In Europe, softwood lumber production is projected to rise by 4% in 2025, following a decline to levels last seen in 2015. The European Timber Trade Federation forecasts a modest increase in consumption, though Germany remains an exception due to a bleak construction outlook (Source: Global Wood Markets Info).

Roundwood prices in Lower Saxony, Germany remained stable, with spruce averaging €100/m3 and pine at €95/m3. Spruce prices varied significantly, with lows at €70/m3. Other softwood prices varied regionally. B/C larch and Douglas fir logs reached €125-130/m3, slightly less for fixed lengths. Regional differences were notable for spruce sawlogs, priced €105-108/m3 in the west and €80-85/m3 in the east. Export-grade spruce ranged from €70-96/m3, and pine sawlogs were €65-85/m3. Whilst, Hardwood prices showed large regional differences. C-grade beech hit €110/m3, while top-grade oak varied from €250/m3 in the west to €620/m3 in central areas. Firewood prices also varied. Hardwood firewood (oak, beech) was around €50/m3, while softwood (spruce, pine) ranged from €25-40/m3, lower in central and eastern regions. (Source: Timber Industry News)

Policy and Regulation:

The European Commission has made imports of Chinese multilayered wood flooring subject to registration, aiming to ensure potential anti-dumping duties can be applied retroactively. This move is part of broader efforts to address unfair pricing and market imbalances caused by increased imports from China (Source: Global Wood Markets Info).

Technology and Innovation:

Finnos is set to deliver advanced board scanners to the Westas Group, enhancing their processing capabilities and quality control. This technological investment underscores the industry's shift towards automation and precision in wood processing (Source: Lesprom).

Outlook for the Coming Week:

As we move into the next week, the industry will likely continue grappling with the implications of global supply chain challenges and geopolitical tensions. However, opportunities for growth remain, particularly in the realm of sustainable building practices and technological advancements. Companies are expected to focus on strategic investments and collaborations to navigate the evolving landscape and capitalize on emerging market demands.

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