• In April, the State Forestry Enterprise (SFE) announced 73 auctions. They offered a total of 38,0 thousand m3 of wood products. Compared to March, the quantity of timber offered fell by 5% and amount of sold timber fell by 4%. The auctions were organized by 23 SFE units.
  • In April, the wood SPOT index recorded an index value of 72.19 Eur/m3. The index shows an increase of 63.4% compared to the same period last year. This represents an increase of 3.2% compared to March.
  • The most significant price changes were recorded in the range of packing logs, which increased by 8.2% (to 91.35 Eur/m3). The increase is 58% compared to the same period last year.
  • Prices for sawlogs grades B/C and D quality classes rose for the second month in a row, with an increase of around 3% compared to March. The average increase is 35% compared to the same period last year.

BALTPOOL Timber Price (SPOT) Index

Global timber market

In April, the timber market, along with other markets for raw materials, continued to experience price peaks, but a slowdown is already underway. The US market is slowing down: at the end of April, the US timber price index fell by more than 5% compared to the index at the beginning of the month, while the World Bank Commodity Market Outlook foresees further raw material price stabilisation. The World Bank expects the timber market to decline by 4.5% in 2022 and grow by 3.7% in 2023. Looking further ahead, the World Bank predicts that from the end of 2024 onwards, prices for both timber and other raw materials will start to fall steadily downwards. The US Federal Reserve System starts to cool down the economy and raises interest rates, which will have negative consequences for the US housing market and thus for the demand for wood.

The end of the heating season in Europe is causing disruption due to raw material supply problems. The reduced timber supply in Central Europe and Russia’s invasion of Ukraine will affect European industry, trade flows and forest product prices for many years to come. Sawmills will need to refocus on wood conversion efficiency and small-diameter cutting options, the fibre industry will need to consider alternative fibre grades and sources of wood fibre, and forest owners will benefit from more active and efficient forest management. In addition, international markets will have to adjust to the reduced supply of European coniferous logs and timber exports.

Trade in TOP timber assortments in ETTS short-term auctions

Trade in TOP assortments in ETTS short-term auctions

Assortments Quantity, scm Change in quantity per month Quantity percentage in the scope of TOP 5 assortments Price, Eur/scm Change in price per month Change in price per yea
Baltpool Timber Spot index Index 26 813 5% 100,0% 72,19 3,19% (69,96 Eur/m3) 63,36% (44,19 Eur/m3)
PJ (spruce, pine, birch); B/C; St,Vd; L2, L3 3 825 200% 14,3% 124,57 2,46% (121,58 Eur/m3) 37,42% (90,65 Eur/m3)
PJ (spruce, pine, birch); D; St,Vd; L2, L3 14 185 89% 52,9% 102,87 2,94% (99,93 Eur/m3) 33,34% (77,15 Eur/m3)
TR (deciduous, conifers) 7 378 -5% 27,5% 91,35 8,20% (84,43 Eur/m3) 58,21% (57,74 Eur/m3)
PP (spruce, pine, birch) 25 -93% 0,1% 53,00 2,87% (51,52 Eur/m3) 72,13% (30,79 Eur/m3)
PM, ML (class II and III calorific value) 1 400 1300% 5,2% 56,90 0,71% (56,5 Eur/m3) 173,43% (20,81 Eur/m3)
Felling residues, covered felling residues 0 0,0% 0,00 -100,00% (31 Eur/m3) -100,00% (10,9 Eur/m3)

 

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

Timber assortments sold at ETTS short-term auctions

Abbrevations:

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.