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Our team regularly reports to you on current developments on the international timber markets. You can find out first-hand how prices and availability are likely to develop.
Our service for you
Our team regularly reports to you on current developments on the international timber markets. You can find out first-hand how prices and availability are likely to develop.
Published on:
Nov 03, 2022
The trends in the timber markets in November

Softwood Lumber

After a lively start to the year, the German market for softwood lumber has been trending significantly weaker since mid-year. For the main assortments in the squared timber and planks sector, prices are being withdrawn by German sawmills. Thus, 80 x 100 / 100 x 100 mm squared timber and 40 x 200 mm building boards are quoted well below the 200 EUR / m3 mark, further price reductions are already foreseeable with colder weather and declining demand. The market is somewhat firmer for siding and packing. Prices for 22 x 100 mm kd are between 220 - 230 EUR / m3, producers see here the lower limit reached. Production breaks from mid-December automatically reduce the available quantities and take into account the reduced demand of the pallet and crate industry. Imports from Eastern Europe are significantly reduced in volume, producers in the countries there are finding it difficult to follow the low German price level.

Plywood Brazil

Purchasing by European importers for the duty-free softwood plywood quota has started since October. This also stopped the free fall of Elliottis Pine plywood price. Today, the 20 mm EPP C+/C is called and paid between 250 - 260 USD / m3 fob, depending on the shipper. Production and loading are relatively fast, the US market, as the most important market for mills in terms of volume last year, is still weakening. In addition to plywood prices, sea freight rates for container shipments are also reducing on a weekly basis. In some cases the rates are called per ship, the fluctuation range is between 2,500 - 3,500 USD / 40' HC. Not completely insignificant for the calculation of the importers. The speculation on further decreasing sea freight rates can certainly not be completely dismissed, on the other hand, goods for delivery in January must be shipped now in order to arrive on time. We therefore recommend our customers to cover their EPP requirements for January / February now, for further time periods waiting might be the right strategy.

Plywood China

Stringent Covid19 measures are still leading to significant restrictions in public life in China. This affects not only the local construction industry, but also the markets for plywood, which still show weak demand. Mills are able to deliver in the short term, and intra-Chinese prices for veneers and glues are declining. However, looking at the last four weeks, this price downturn has slowed significantly and came to a halt within the last two weeks. Similar to Brazil, the development of ocean freight for container shipping has become much more critical to pricing. Gone are the days where a 40' HC container from China to Europe was calling for $15,000 USD and more. Today's shipments are below 2,800 USD, with a downward trend. The demand in Germany for 21 mm film plywood is very stable, the large stocks in the port warehouses have been reduced, currently there is even a shortage of the product and most importers only deliver to existing customers. For 21 mm filmfaced plywood currently 9.50 - 9.80 EUR / m2 must be paid fot European port. Partly you can find prices below that, but delivery not before January. Upside down world, in the past scarce availability at least ensured stable prices. The first Chinese deliveries of felted eucalyptus plywood as a replacement for Russian birch plywood have arrived and partially delivered. But the market is not yet ready for this product, still large quantities of Russian birch plywood imported before July can be found in the warehouses of importers and wholesalers.

Siberian larch

Since 07.07.2022 the import of Siberian larch from Russia is prohibited by the 5th sanctions package of the EU. Thus, month after month, the large stocks, some of which were still available at importers and planing mills, are reduced. From dubious Turkish and Kazakh sources, Siberian larch lumber is offered, from our point of view, the import is not EUTR compliant possible and therefore not a viable way for us. Estimates today assume that the stocks will last until mid-2023, the sales prices are fixed, because alternatives are not in sight.

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