Following the needs of market participants, Baltpool, the Energy Exchange operator belonging to the EPSO-G group, will publish the Baltpool Timber Spot Lithuania price index starting from 4 February.
The purpose of the Baltpool Timber Spot Lithuania price index is to objectively assess the market situation, to monitor changes in timber prices and trends. The value of the index will become a convenient tool suitable for bilateral contract pricing, company internal transaction pricing, and market research.
“The Baltpool Wood Chips Spot Lithuania price index, which Baltpool started publishing last March, became an important tool for developing a transparent and competitive biomass market. Therefore, using the best international experience, we have created and are starting to publish the first timber price index in Lithuania, which will become an objective reference point for buyers and sellers both on and off the exchange,” said Andrius Smaliukas, director general of BALTPOOL.
According to him, the goal of Baltpool is to enable all market participants to trade timber products in a competitive market where the price is formed by the current supply/demand ratio.
The calculation of the new timber index includes short-term timber purchase and sale contracts concluded on the ETTS for selling of assortments, which accounted for 70 percent of annual ETTS short-term contracts turnover last year.
The value of the timber index will be updated weekly according to the trade data of short-term contracts concluded on the ETTS last week. The index value is available from 19 February 2018 and can be viewed on the Baltpool website at www.baltpool.eu
This index is based on the principles for financial benchmarks published by the International Organization of Securities Commissions (IOISCO). Baltpool will carry out an independent audit of the index value calculation every year. The reliability of the index and its ability to accurately reflect the market changes are ensured by the sales of timber carried out by the State Forests Directorate via the Electronic Timber Trade System (ETTS).
More information about the specification of the published Baltpool Timber Spot Lithuania index is available on the ETTS administrator’s website: www.baltpool.eu/en/legal-acts/