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2024-01-25 00:00:00
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Sawlog Prices in Europe See Notable Decline in Late 2023, Especially in Central Europe
The European sawlog market witnessed a notable 12% drop in prices from one quarter to the next in the latter part of 2023, with the most significant reductions seen in Central Europe. This decline in sawlog prices was largely attributed to diminished production at sawmills located in key lumber-exporting countries like Austria, the Czech Republic, and Germany. These countries experienced a downturn in demand and variable log supplies, leading to significant fluctuations in the European Sawlog Price Index (ESPI), which tracks sawlog prices in nine European nations.
Despite this considerable dip, the current levels of the ESPI remain €13/m³ higher than the average of the past 28 years. This follows a period of substantial increases in the ESPI, a trend that began during the pandemic and led to a sharp rise in prices from 2020 to 2022, before they started to fall. The sawlog market has been impacted by several international developments, such as the ongoing conflict between Russia and Ukraine and the economic slowdown in China, both of which have resulted in decreased exports of wood products from Europe.
In Sweden, specifically, there was an almost 10% increase in spruce prices from the third quarter of 2022 to the third quarter of 2023. This was primarily due to a decrease in log deliveries from private forest owners, predominantly in the southern part of Sweden. In contrast, sawlog prices in other Nordic countries have remained relatively unchanged. The Baltic States, which are exporters of both logs and lumber, also experienced a decline in sawlog prices, driven by lower domestic demand and a slight drop in log exports in 2023.
These trends signify a period of instability and fluctuating demand in the European sawlog market, influenced by a mix of regional and global economic conditions.
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