Producer prices for all types of wood in Germany continued to rise as of May, according to the German statistics agency. The upward trend in prices has extended from spruce to oak, and beech prices are not far from their previous all-time highs. The price of pine has also risen for several months.
Manufacturers concentrated on hoarding goods, and the price of German wood products kept rising in the first half of the year
So far, there is no sign that the upward trend in German lumber prices will slow. Compared to the previous month, the price of spruce lumber rose by 2.5%, and the price of spruce received by lumber producers increased by 44.1% compared to the previous year. Pine tree prices rose 1.3% month-on-month and 24.6% year-on-year. Prices for sawn softwood in May were 41.9% higher than the previous year and even up 3.7% compared to April.
Manufacturers concentrated on hoarding goods, and the price of German wood products kept rising in the first half of the year
German hardwood producers also benefited from higher prices. Oak lumber rose about 13.5% year-on-year, and beech wood prices also rose 6.3% year-on-year.
Of all the lumber products that rose, only industrial lumber and energy lumber rose more than spruce in May. Industrial lumber prices in May rose 2.7% month-on-month and 37.4% year-on-year. And for energy lumber, prices are at all-time highs. Prices in May rose by 3.9% month-on-month and up 60.5% year-on-year.
Manufacturers concentrated on hoarding goods, and the price of German wood products kept rising in the first half of the year
Due to the reduction of natural gas imports caused by the conflict between Russia and Ukraine, and the energy crisis caused by it, the demand for energy wood in most parts of Germany has surged, which greatly exceeds the market supply capacity. However, buyers are affected by panic factors and purchase a large amount of energy wood that far exceeds their own needs, further exacerbating the gap between supply and demand in the market.
Manufacturers concentrated on hoarding goods, and the price of German wood products kept rising in the first half of the year
Market watchers report that prices for grade A/B, 2b spruce have been reduced to €15 per FMO in certain regions of Germany. However, it is unclear whether prices will fall further. Because supply and demand may change again as demand increases in the fall.
Rapidly rising inflation and surging costs, as well as a shortage of workers in the construction industry, are bound to have a negative impact on sales of construction products whose main raw materials are lumber and sawn timber. The drop in new construction applications points to market uncertainty and the consequences of rising interest rates and rising inflation.