Firewood prices have halved since last year's crisis, says industry

Last year, during the energy crisis, prices of wood and woodchips also increased rapidly. Latvian businessmen export chips, pellets, and briquettes, and prices even doubled as demand on the domestic market increased. Latvian Television surveyed the market situation November 13.

Harvesting and woodworking company Krauzers is based in Kurzeme and its board chairman Andis Araks said that wood and chips prices fell as early as spring. Prices vary from region to region – it is more expensive in Kurzeme, Zemgale, and around Rīga, and cheaper in Latgale. 

“The first price drops already took place in spring and these price drops continued throughout the summer and in August, in September it took on some stability and the price drops are practically 35% - 45%. Wood, you might say, is even half as cheap as it was last winter.

“The chip currently ranges from 17 to 24.25 euros per cubic meter and the wood is between 40 and 50 euros, again depends on what the quality requirements are and where the place of delivery is,” Araks explained.

The forest management and timber industry company Pata works in Vidzeme, Kurzeme and Pierīga. Jānis Mierkalns, the company's timber sales manager, also said prices for wood and chips halved this year.

Demand for firewood is low due to the warm autumn, but demand for chips has grown, the spokesman for Pata has said.

“There are new consumers, new boiler houses, heat plants. From the private sector, demand growth is also felt against last year,“ observed Mierkalns.

“Many have changed gas boilers -- some to pellets, some to electricity, but demand has risen. Supply has shrunk slightly, prices have dropped significantly. Demand, as more stable weather sets in, could also be expected to rise. Consumption will increase, demand will also increase and the price dynamics, well, I don't think it will change significantly, maybe very slightly,“ predicted Mierkalns.


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