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Rubber and Wood August 12, 2020 08:20:45 PM

Germany's Saw Log Market Extended Its Rollercoaster Ride

Paul Ploumis
ScrapMonster Author
The prices of sawlogs witnessed huge variation across different regions within the country.
Germany's Saw Log Market Extended Its Rollercoaster Ride

SEATTLE (Scrap Monster):  The log market in Germany continued to remain highly volatile during the initial six-month period of the current year. The export market demand peaked, whereas the country witnessed extremely tight supply of fresh green logs. The domestic saw log demand declined, thereby leading to significant reduction in both domestic and export prices.

The prices of sawlogs witnessed huge variation across different regions within the country. The spot prices declined substantially to low levels, not even able to cover the costs for logging and hauling the timber. According to Wood Resources Quarterly (WRQ) report, the average sawlog price in Germany saw marginal increase from the prior quarter during the initial quarter of 2020. However, they were significantly lower when compared with the corresponding quarter in 2019.

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The softwood log exports from Germany have moiré than trebled over the past five years. The exports have surged higher from levels of 2.1 million cubic metre in 2014 to 7.4 million cubic metre in 2019. The export volumes were up by over 38% during the initial four months of the current year, as compared with the similar four-month period in 2019. The primary export market destination for German logs was China, which received almost 50% of the total logs exported by Germany during Jan-Apr ’20.

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