Log prices reduced by 0.3 % in August

Russia: Log price reducing was 0.3 % in August. In August, an average price for 1cub.m of softwood timber of 16-30 cm diameter, 4-6 m of heights was 2.6 % higher than in July. 1 cub m of hardwood timber of 16-30 cm diameter, 3-6 m of heights was 0.6 % higher than in July. And 1cub m of softwood balance of 4 m of heights and 6-16 cm diameter (1, 2 and3 class) cost 2% less in August. As well as 1cub m of the same hardwood balance, that cost 1.5 % lower compare to July.

Given prices can vary due to the volumes of delivery, place of delivery and delivery rates. These prices were taken from the log producers with the volume of delivery at 500 cub m.

Spot market in August had shown the prices growing by 1.3%.This growth caused by the season demand on timber (because of the house building). The reduce of the raw material is being also one of the reason to change the price. The balance wood prices were 2.2 % lower than in July. It shows the lack of stability on the market of balance wood.

Costs and demand on softwood timber even grew in Siberian region even grew. While the prices on the balance wood remained stable in average.

The visible growth of the prices was in the Ural region due to the top of building season. The prices on the balance wood remained stable

North-West region of Russian faced the 0.7% growth of the prices for hardwood timber. Balance wood didn’t change a lot. The general part of loggers told that they sell they raw materials only according to the long-term contracts, signed years ago.

Central District has also witness the growth of the hardwood timber prices, while the balance wood prices dropped because the main part of the raw material remains unsold.

The same situation is obvious in the Privolzhsky region. The Pulp and paper mills have to limit their purchase because there is a lot of raw and material offer on the market.

Informational resources: Lesprom Network, Russian Forestry Review