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Some sawmil residues prices are down to 2009 level on the market in Germany


Prices for sawmill residues in Germany
dropped in April; Source: EUWID
17 Apr 2019 − 

Suppliers of sawmill residues are looking for sales alternatives in energy sector and export markets.

At the beginning of April, new contracts for deliveries of pulp and MDF woodchips and sawdust from 1 April have been signed on the market in Germany. Suppliers and buyers reportedly agreed on price cuts. The last time sawmill residues were selling at a similarly low level of prices was in September 2009; a comparably sharp turning point last arose from the first to the second quarter of 2014. Aside from the latest new contracts, there are also various long-term contracts with terms of one to three years in which the lodged prices are considerably higher than those in the latest agreements.

According to statements from market players, the decisive factors behind the most recent cuts in prices were a very high supply of sawmill residues and an extremely high supply of industrial wood as well. Parallel to this, a slight flattening was identifiable in the production activity of the residual wood-processing industry too. Whereas the pulp and particleboard industry have been producing largely consistently without a break, a number of individual pellet and MDF/HDF producers have had to cut back their output and resort to temporary production stoppages during the course of the last few weeks.

This article is an excerpt from EUWID's monthly report on the market for sawmill residues in Germany.

Find more details on prices and our EUWID Price Watch Sawmill Residues for April 2019 in EUWID Pulp and Paper issue no 16/2019, which will be available to our e-paper and print subscribers as of 17 April.

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

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