Timber Trends week 48: Price Surges, Regional Insights, and Market Outlook for 2024/2025

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Industry Overview

This week, the wood and timber industry faced significant challenges and developments across various sectors. The recent insolvency of Germany's Ziegler Holding has created uncertainty within the European timber market and signals the difficulty of the current market. Meanwhile, pricing trends indicate regional differences, with demand and costs rising in certain areas, signaling market adjustments. On the regulatory front, the EU Deforestation Regulation (EUDR) saw further delays, reflecting ongoing debates about its implementation. Innovations in timber technology and growing investments in sustainable forestry further highlight the industry's evolving dynamics.

Market Updates

Lumber Pricing Trends

• Austria: Softwood sawlog prices have increased slightly, with benchmark spruce logs ranging between €93 and €115/m3, depending on the region. Demand for pine remains high, driven by strong local preferences over imports. (Source: Timber Industry News)
• Finland: October saw stable prices for softwood logs (€79–82/m3) and pulpwood (€32–34/m3), though these figures are markedly higher than last year's averages, with pulpwood prices at record highs. (Source: Timber Industry News)
• France: Mixed pricing trends were observed for Q3 2024. Some oak log categories saw prices rise by up to 7%, while spruce lumber experienced declines of 4–11% compared to the same quarter last year. (Source: Timber Industry News)

Timber Price Outlook

• In Sweden, optimism among forest owners continues, with 50% expecting timber prices to rise further in the next three years, supported by increasing demand for pulpwood. (Source: Timber Industry News)
• In the United States, lumber futures have risen sharply, reaching $620 per 1,000 board feet in mid-November. This trend is driven by supply constraints and growing housing demand, despite high mortgage rates tempering some construction activity. (Source: Timber Industry News)

Pellet Market Trends

• Europe: Pellet prices show stability in regions like Austria (€289/ton) and Germany (€279/ton), with slight increases in Switzerland and France due to seasonal demand. Italy, however, noted a significant price drop, with costs now back to September 2021 levels, enhancing pellet affordability. (Source: Global Wood Markets Info)

Policy and Regulation

EUDR Delayed Until December 2025

The European Deforestation Regulation (EUDR) implementation has been postponed until December 2025 for large companies and mid-2026 for smaller enterprises. A new "no risk" country category has been introduced, offering leniency for countries with stable or increasing forest areas. However, critics argue that this undermines the regulation's effectiveness in combating global deforestation. (Source: Wood Central)

FLEGT Licensing Expansion

Ghana is set to become the first African country to issue FLEGT-licensed timber by mid-2025, joining Indonesia in this initiative. This certification ensures the legality of timber exported to the EU, aiming to combat illegal logging and attract global investors. (Source: Houtwereld)

Outlook for the Coming Week

Stakeholders will continue to monitor regulatory developments under the EUDR and FLEGT frameworks. In the US, lumber price movements and housing market trends will be key indicators of market health as 2024 draws to a close. We extend our thoughts to everyone affected by the recent insolvency of Ziegler Holding and remain hopeful for a resolution that supports the industry's resilience and stability.

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