• In March, the SFE announced 104 auctions. They offered a total of 39,9 thousand m³ of timber products. Compared to February, the amount of offered timber increased by 16 % and amount of sold timber increased by 113 %. The auctions were organized by 25 SFE units.
  • In March, the SPOT index of timber recorded a value of 69,96 Eur/m³ of the index. Comparing the value of the index with the corresponding period last year, an increase of 63,7% is seen. Compared to February, the growth is 15.2 %.
  • The most significant price changes were recorded in the assortments of sawlogs, in B/C quality classes, the price of which increased by 15 % (to 121,58 Eur/m³). Comparing the price with the same period last year, the growth is 40 %.
  • After a two-month break, transactions for the assortment of panel timber were concluded. The price was 56,50 Eur/m³. Comparing the price with the same period last year, the growth is 160 %.
  • After a three-month break, transactions for felling residues were concluded. The price was 31,00 Eur/m³. Comparing the price with the same period last year, the growth is 142 %.

BALTPOOL Timber Price (SPOT) Index

Global timber market

The global timber market is, as always, divided into two large camps: the US and Europe. Different expectations develop within these markets. At the end of March, the US timber price index had fallen by more than 20 % compared to the index at the beginning of the month. As the construction season approaches, market participants are anxiously watching the real estate market. Prices are on the rise, with the price of an average house now exceeding $500,000 USD. This unprecedented price increase has led to a drop in the number of real estate transactions. The timber market in the US is highly dependent on the activity of the real estate market, which makes market participants more careful.

Meanwhile, the situation in Europe is completely different. The sanctions against Russia, which will take full effect at the beginning of June, will reduce the supply of timber. The potential timber deficit in the market is far more troubling for everyone than a possible drop in demand or, in general, a possible recession in the economy.

Russia is the largest exporter of wood products in the world. Around 40 % of its exports go to China and the rest to European markets. Russia’s largest export partner in Europe is Finland, whose raw material problems may also reach the Lithuanian market.

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  25 363 116 % 99,6 % 69,96 15,18 % (60,74 Eur/m³) 63,73 % (42,73 Eur/m³)
PJ (spruce, pine, birch); B/C; St,Vd; L2, L3 1 275 -21 % 5,0 % 121,58 15,29 % (105,46 Eur/m³) 39,72 % (87,02 Eur/m³)
PJ (spruce, pine, birch); D; St,Vd; L2, L3 15 858 204 % 62,3 % 99,93 10,49 % (90,44 Eur/m³) 42,82 % (69,97 Eur/m³)
TR (deciduous, conifers) 7 775 248 % 30,5 % 84,43 5,84 % (79,77 Eur/m³) 59,96 % (52,78 Eur/m³)
PP (spruce, pine, birch) 355 97 % 1,4 % 51,52 2,36 % (50,33 Eur/m³) 60,72 % (32,06 Eur/m³)
PM, ML (class II and III calorific value) 100 0,4 % 56,50 159,65 % (21,76 Eur/m³)
Felling residues, covered felling residues 100 0,4 % 31,00 141,59 % (12,83 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.