Trade at timber auctions in February low due to high prices
In February, transactions for the sale of 7,330 m3 of timber under short-term contracts were concluded via the ETTS, but, in the course of the month, buyers bought only 62% of the 14.353 m3 of timber offered by the State Enterprise State Forests Directorate.
The passivity of buyers during timber auctions signals that the prices are too high for market participants. The trade is likely to become more active as soon as the prices drop.
Of the sawlogs assortments offered in the course of the month, 36% was purchased. Only at two out of eighteen auctions did buyers purchase timber at the initial stage without waiting for sellers to reduce prices. Demand for sawlogs during the other auctions only became active when the initial selling prices were reduced by 8%–22%. Nevertheless, the largest share of the sawlogs offered in February remained unsold, and sellers therefore will reduce the prices when they announce repeat auctions.
BALTPOOL TIMBER SPOT LITHUANIA price index
The value of the Baltpool Timber Spot Lithuania index increased by 7% in February and was 46.88 EUR/m3 by the end of the month. The annual change of the index is 6.25%: on 26 February 2018, the value of the Baltpool Timber Spot Lithuania was 44.12 EUR/m3.