Slightly rising supply of sawmill residues in Germany is coinciding with mostly steady demand from processing companies; many prices for MDF and pulp woodchips are to be rolled over.
Cutting activity in the German sawmilling industry and thus the supply of sawmill residues evidently did not decrease as heavily in May as had originally been expected. However, supply of sawmill residues in Germany has varied from one region to another in recent weeks. It remains to be seen, however, to what extent, if at all, the flooding situation in Bavaria and parts of eastern Germany will have on the works’ log supplies.
The pulp and paper industry’s intake of sawmill residues is consistent at the moment, its supply position having been tense at times in the last few weeks. The output of pulp was high in the early days of June. The only stoppage this month is going to be one of several weeks at an Austrian pulp mill due to conversion work. The other mills are going to continue production at the present high level. A major pulp producer has already begun to build up summer stocks this week.
With regard to numerous delivery contracts expiring at the end of the month, the first more concrete negotiations on follow-on contracts for third-quarter deliveries are to be expected from the middle of June onwards. As things stand at the moment, it looks as if most market players are expecting prices for MDF and pulp woodchips to be rolled over. Only in the southwest are upward price adjustments anticipated, causing prices to flatten out in the southern regions of Germany. The capping of stubborn price peaks for sawdust appears to be the subject of discussion.
