Shortage of sawdust prompts increase in sawmill residue prices in Germany
Growing shortage is due to heavy demand from the pellet industry, a seasonally lower supply of residual wood and reduced cutting performance in the sawmilling industry.
In Germany, supply of sawdust has continued to decline on the sawmill residue markets in the last few weeks. Suppliers have been able to get more price increases accepted in the latest contracts. The growing shortage is due to heavy demand from the pellet industry, a seasonally lower supply of residual wood over the bank holidays and at the turn of the year, and reduced cutting performance in the sawmilling industry due to the frost period.
Lower supply of sawdust has also had an effect on the market for pulp and MDF woodchips. Quite a number of pellet producers have further increased their input of woodchip assortments in production operations. Overhanging volumes that had still existed on the woodchip market at the end of the fourth quarter have thus been distributed in the meantime.
This article is an excerpt from EUWID's monthly report on the sawmill residues market in Germany. The EUWID Price Watch Germany Sawmill Residues for January is published in EUWID Pulp and Paper 5/2017.
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