Central European suppliers of sawmill residues see leeway for higher prices

07 Sep 2021 − 

Spot prices in July and August rose slightly.

A high level of production activity amongst the majority of central European processors of sawmill residues has contributed to further stabilisation of the market for sawdust and pulp/MDF woodchips. Owing to the downtime for holidays and inspection work in July and August, cutting activity in the German sawmilling industry has turned out to be slower than in the previous weeks, entailing a decline in the supply of sawmill residues. In spite of a number of cases of maintenance and repair work at wood-based panel works, pulp mills, and pellet works, the outflow of residues has been largely undisrupted. Some suppliers and trading companies report requests for supplementary volumes as well as reductions in their stock levels. Unsold stocks of residual wood have further declined against June and July and hardly exert any pressure on the market. Sales of surplus volumes to power-station operators in Scandinavia have mostly been discontinued in the meantime.

Minor increases arose in prices for sawmill residues on the spot markets in July and August. The majority of negotiations on deliveries of residual wood from the fourth quarter are not scheduled to begin until the end of September. Expectations vary widely.

This article is an excerpt from EUWID's report on the sawmill residues market in Central Europe.

Find the entire report and the latest EUWID Price Watch Sawmill Residues in EUWID Pulp and Paper issue no 36/2021, which will be available to our e-paper and print subscribers as of 8 September 2021.

Want to find out more? Check our subscriptions or test EUWID free of charge.

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