Oversupply on German sawmilling residue markets persists
The German sawmilling residue markets still witness oversupply. The situation is not expected to change over the next weeks. Depending on the region, buyers may therefore be able to achieve price reductions.
At the beginning of June there continue to be surplus supplies on German sawmilling residue markets. From today's perspective it can be assumed that this situation will show no change worth mentioning during the course of the coming eight to twelve weeks. Depending on the range and the region, market participants consider it possible that further price reductions will be made towards mid-year.
In northern and western Germany, buyers of sawmilling residues have recently demanded price cuts from their suppliers from the sawmill sector for current quarterly contracts. Those demands were being justified with the high level of supplies, lower overall demand and low prices already prevailing since 1 April or 1 May, especially in south-western Germany. Market participants expect that buyers will probably be successful with their demands.
In East Germany, however, buyers' demands for further price reductions are meeting with greater resistance. It is evidently still possible for suppliers there to dispose of surplus sawmilling residues to energy-related and material-related processors in Poland.
⇒ This article in an excerpt from EUWID's report on the German sawmill residues market.
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