Timber Exchange trade statistics April of 2023
- In April, the State Forest Enterprise (SFE) announced 148 auctions. A total of 193,29 thousand solid m3 of timber products were offered. Compared to March, the volume of timber offered increased by 5% and the share of timber sold did not change significantly. The auctions were organised by 26 VMU units.
- The SPOT Wood Index recorded a value of 61,48 EUR/solid m3. The index value shows a drop of 15% compared to the same period last year. Compared to the previous month, the index fell by 5%.
- Significant price changes in April were recorded in the assortments of paper pulp, sawn logs (class D) and logging residues. The price of paper pulp fell by 12% (from EUR 73,61/solid m3 to EUR 64,59/solid m3), the price of sawn logs (D-class) fell by 10% (from EUR 74,56/solid m3 to EUR 66,78/solid m3), and the price of logging residues rose by 183% (from EUR 9,13/solid m3 to EUR 25,86/solid m3).
BALTPOOL Timber Price (SPOT) Index
Trade in TOP timber assortments in ETTS short-term auctions
Trade in TOP assortments in ETTS short-term auctions
|Assortments||Quantity, solid m³||Change in quantity per month||Quantity percentage in the scope of TOP 5 assortments||Price, Eur/solid m³||Change in price per month||Change in price per year|
|Baltpool Timber Spot index||Index||89 175||74%||34.9%||67.92||-0.1%||12%|
|PJ (spruce, pine, birch); B/C; St,Vd; L2, L3||7 800||-42%||9%||90.06||-3%||-16%|
|PJ (spruce, pine, birch); D; St,Vd; L2, L3||13 980||3%||15.7%||66.78||0%||-14%|
|TR (deciduous, conifers)||9 315||-45%||10.4%||72.14||-10%||8%|
|PP (spruce, pine, birch)||26 945||33%||30%||64.59||-12%||55%|
|PM, ML (class II and III calorific value)||31 135||10%||35%||54.03||9%||42%|
|Felling residues, covered felling residues||1 110||147%||1%||25.86||–||-17%|
Trade in regional units of the State Forest Enterprise in short-term auctions
Timber assortments sold at ETTS short-term auctions
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.
Global timber market
Timber markets worldwide are facing various challenges, with some signs of recovery being observed. The US market has returned to normal price levels, while improved weather conditions in the US and Europe have increased demand for timber, extending sawmill lead times.
Several companies, including SCA, Stora Enso, Setra, and UPM Plywood, have reported declines in sales and profits for Q1 2023 due to weak demand, lower selling prices, and high raw material costs. SCA and Stora Enso noted that demand was stronger in Q1 2023 compared to the preceding Q4 2022 period, while Setra observed a slight uptick in prices during the quarter.
Stora Enso is taking actions to protect margins by reinforcing cost controls, negotiating potential furloughs in Finland, and adjusting capacity to market fluctuations. Meanwhile, UPM Plywood has completed the withdrawal of its business from Russia and is investing in the development of its mill in Finland.
The Global Timber Index (GTI) report, provided by the International Tropical Timber Organization, indicates that timber markets in Brazil, the Congo, Gabon, Indonesia, Malaysia, and Mexico contracted in March 2023, with the GTI in Brazil and Malaysia falling below the critical 50% value for the fifth consecutive month. However, China’s timber sector experienced an increase in orders and production for the second consecutive month, signalling a recovery in the market. ITTO’s membership represents about 90% of the global tropical timber trade and more than 80% of the world’s tropical forests.
Overall, the global timber market is showing mixed signs of recovery, with some regions and companies reporting better performance, while others continue to struggle with weak demand and high costs.