Timber Exchange trade statistics March of 2023
- In March, the State Forest Enterprise (SFE) announced 206 auctions. A total of 184,41 thousand m3 of timber products were offered. Compared to February, the volume of timber offered increased by 110% and the share of timber sold increased by 83%. The auctions were organised by 23 SFE units.
- The SPOT Wood Index recorded an index value of EUR 64,46/solid m3. The index value shows a drop of 8% compared to the same period last year. Compared to the previous month, the index fell by 5%.
- Significant price changes in March were recorded in the assortments of paper pulp, wood pulp and logging residues. The price of the paper pulp product range fell by 6% (from EUR 78,09/solid m3to EUR 73,61/solid m3), the price of wood pulp fell by 10% (from EUR 85,94/solid m3 to EUR 77,24/solid m3), and the price of logging residues, which was last recorded in May 2022, fell by 71% (from EUR 31,00/solid m3 to EUR 9,13/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||92 455||45%||47.5%||64.46||-5.1%||-9%|
|PJ (spruce, pine, birch); B/C; St,Vd; L2, L3||13 465||100%||15%||87.06||-2%||-28%|
|PJ (spruce, pine, birch); D; St,Vd; L2, L3||13 590||64%||14.7%||74.56||-4%||-25%|
|TR (deciduous, conifers)||16 890||184%||18.3%||77.24||-11%||-9%|
|PP (spruce, pine, birch)||20 265||50%||22%||73.61||-6%||43%|
|PM, ML (class II and III calorific value)||28 245||-68%||31%||55.20||-4%||-2%|
|Felling residues, covered felling residues||450||–||0%||9.13||-240%||-71%|
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
Market participants are hinting at a possible recovery of the timber markets, but this should be interpreted with caution. The US market, which has a particularly high seasonality in spring, has returned to normal price levels for the entire five-year period. The economic slowdown has clearly pulled emotions aside.
Significantly improved weather in the US and Europe at the end of March has boosted demand for timber, extending sawmill order lead times by almost a month, explains Madison’s Lumber Reporter. This has allowed suppliers to increase prices. During the annual spring break, there was a noticeable shortage of players as families were out of work and children were not in school. As the market adjusted to this seasonal increase in sales, prices for some commodities remained flat while others increased slightly. Transport continued to be difficult, especially in areas travelling longer distances with snow on the ground.
The German timber market surprised many forest owners. Instead of falling prices and crisis sentiment, timber prices rose in the new year. And at the moment, the situation does not look like changing any time soon. This is true for softwood sawnwood as well as for hardwood sawnwood and pulpwood. Demand for spruce sawn timber remained very good in March (as in February). Prices, which increased at the beginning of the year, remained stable or increased slightly in the regions.
March heralded good news for biomass companies in the EU. The European Council (under Swedish Presidency until June, 2023) and the European Parliament agreed on the Renewable Energy Directive III (REDIII), including the treatment of biomass. The agreement is good news for the biomass industry as the final agreement does not include the most worrying aspects proposed by the Parliament. Biomass will continue to be considered as renewable energy and will therefore count towards Member States’ renewable energy targets.