Jun 20, 2008

Russia Round timber wood price reduction averaged to 15% in May

Posted by : tootoo
 timber wood Round timber price reduction averaged to 15% in Russia in May 17/06/2008 - 13:14 The offer still exceeds demand , Lesprom Network's Analytical service reported in the monthly woodbased panel prices survey. The average price for 1 m3 of 4?6m long sawlog from softwood (pine, fir tree)16?30 cm in diameter amounted 1.5% up against April; 1m3 of3?6m long sawlog from hardwood (birch) 16?30 cm in diameter 20%down against last month; 1m3 of 4m long pulpwood from fir tree6?16cm in diameter (grades 1, 2, 3) cost 18% down against April.The price o 1m3 of 4m long pulpwood from (ordinary) pine 6?16cmin diameter (grades 1, 2, 3) was 23% down against last month; 1m3of 6m long pulpwood from hardwood (birch) 6?16cm in diameter(grades 1, 2, 3) dropped 13% down against April. Average price gapbetween manufacturers and traders amounted to 20% in the pulpwoodsegment and 16% in the sawlog segment in May (against 17.6% and 9%,respectively). The prices listed in the review may vary dependingon volume of delivery product destination. The general situation in the spot market of round timber isunfavorable unstable. Offer still exceeds demand in May. It isimportant to note that this situation does not affect largemanufacturers working with constant suppliers and concludinglong-term contracts. Small companies working for export areespecially sensitive to the situation. Increased duties haveaggravated the problem of Russia being unprepared to process theentire volume of logged wood. The situation has affected Europeancountries too. EU cannot agree to an increase of the raw woodexport duty by Russia, said Chairman of the European CommissionJose Manuel Barroso. Barroso said that interests of a number of EUcountries with developed wood processing industry, in particular,Finland may suffer from this increase. Barroso said that thissituation is unacceptable. It is at variance with agreements withRussia. The European Union considers excessive the dutiesestablished by Russia on export of raw wood. However, not entireEurope has a similar attitude to the increase of duties. So, forexample, Austria, which itself is a supplier in the world markets,benefits from this situation. Countries buying wood from Russia are increasing volumes ofpurchases at current prices, on the one hand, and are looking fornew suppliers, on the other. So, for example, Finland is activelyswitching to German round timber exporters. Trends of the lastmonth remained in the pulpwood market. The average cost of pulpwood dropped by 18% in May. Sawlog prices are still falling, and the difference between sawlog priceand pulpwood price is promptly decreasing. It is due to decreasingdemand for Russian raw materials and additional supply of goods byCanada and Scandinavia, caused by a crisis in the USA. The averagesawlog price dropped by 15% in Russia in May (due to hard pulpwoodprice reduction by 20% on the average). (Lesprom) Send this article to a friend
 
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