Modest but stable growth of round timber purchasing prices

04.04.2014

The average purchase prices of round timber in the 2nd half of 2013 as compared to the 1st half of 2013 show modest but stable increase.

In the 2nd half of 2013 the average purchase prices of coniferous tree sawlogs have increased on average by 2% or by 1-3 €/m3  for spruce and pine sawlogs (as compared to the 1st half of 2013).

Birch sawlog purchase prices remained at the previous level - 49-59 €/m3.

Black alder and asp sawlog sector witnessed a slight purchase price growth of up to 2%.

There was also an increase in the birch veneer log market of 9% or 6-8 €/ m3.

The purchase prices of deciduous tree veneer logs have risen only slightly.

Average purchase prices of round timber by tree specie and timber type

Timber types

1st half of 2013

2nd half of 2013

LVL

LVL

Pine

diameter to 14 cm

30.37

43.21

32.05

45.60

diameter 14-18 cm

45.24

64.37

46.07

65.55

diameter 18-26 cm

47.36

67.39

47.92

68.18

diameter over 26cm

51.95

73.92

53.49

76.11

Spruce

diameter to 14 cm

32.87

46.77

33.53

47.71

diameter 14-18 cm

46.52

66.19

47.45

67.52

diameter 18-26 cm

52.16

74.22

50.11

71.30

diameter over 26cm

52.77

75.08

53.72

76.44

Birch

diameter 18-24 cm

34.62

49.26

34.81

49.53

diameter over 24 cm

41.52

59.08

41.78

59.45

Black alder

diameter 18-24 cm

26.02

37.02

27.22

38.73

diameter over 24 cm

30.58

43.51

30.60

43.54

Asp

diameter 18-24 cm

26.24

37.34

26.93

38.32

diameter over 24 cm

30.53

43.44

31.04

44.17

Birch veneer logs

A category

41.84

59.53

45.76

65.11

B category

38.28

54.47

41.43

58.95

Packing timber (of deciduous trees)

25.83

36.75

25.95

36.92

Round timber market in 2013 was affected by the stable demand both in foreign and Latvian market, which is related to the recovery of the construction sector after the rapid drop in 2009 - 2010.

During the economic recession period it was permitted to fell in the state forests more timber than the set felling volume. It enabled the forest industry to stabilise its positions, promoting timber and timber product export.

Currently the situation has changed - the total felling amount drop has a different effect on timber industry companies of different profiles. Insufficient resources gradually increase the round timber market prices.

Last year deliveries of coniferous tree sawlogs from state forests dropped most rapidly. The rainy weather at the end of the year and the burdened machinery work resulted in decreased logging volumes. Private forest owners who mainly grow deciduous trees experience difficulty in competing for a higher price due to the small volume they can provide, and therefore the prices of deciduous tree sawlogs did not increase significantly.

According to the information of portal www.latvianwood.lv the forecast for further price growth is cautious; as the active logging period is about to start soon, the offer to the market will also increase. The demand of the foreign markets may drop due to storm (Ivar and Hilda) damage in pine forest stands in Sweden.

Purchase prices of coniferous tree sawlogs,€/m3

Data source: Central Statistical Bureau of Latvia

Purchase prices of deciduous tree sawlogs, veneer logs and packing timber, €/m3

Data source: Central Statistical Bureau of Latvia


More information:
Maija Norenberga
Environment and Energy Statistics Section
Tel. 67366744