Log prices were red hot in 2022

Take note – story published 1 year and 2 months ago

The second half of 2022, saw a significant increase in the purchase prices of logs and timber, according to data from the Central Statistical Bureau of Latvia (CSB) published March 30.

The average purchase prices of both coniferous and deciduous roundwood in the second half of 2022 were sharply up compared to the first half. 

In the second half of the year, compared to the first six months, the sharpest rise in the coniferous sawlog segment was registered in prices of pine roundwood in diameter under 14 cm (36 % or 24 EUR/m3 on average), pine roundwood in diameter 14–18 cm (34 % or 27 EUR/m3), as well as spruce roundwood in diameter under 14 cm (23 % or 15 EUR/m3)

In February 2022, Russia's invasion of Ukraine caused economic instability in Europe and worldwide, resulting in higher costs of energy resources, raw materials and logistics. Use of local timber became an important tool to defuse the energy crisis, and demand for fuelwood and wood pellets contributed significantly to the increase in roundwood prices. The EU's sanctions against the aggressor countries which recommended stopping buying Russian and Belarusian timber products had an upturn influence on the purchase prices as well.

Average purchase prices of coniferous sawlogs (EUR/m3, excluding VAT)

 

2020

2021

2022

first half

second half

first half

second half

first half

second half

Pine sawlogs

 

 

 

 

 

 

in Ø under 14 cm

46.7

46.6

47.6

58.9

67.4

91.5

in Ø 14–18 cm

59.5

55.6

76.4

82.7

80.9

108.4

in Ø 18–26 cm

61.5

63.8

82.5

106.3

113.0

116.1

in Ø over 26 cm

64.2

67.7

85.8

112.5

115.4

116.2

Spruce sawlogs

 

 

 

 

 

 

in Ø under 14 cm

43.0

42.4

46.1

51.7

65.4

80.5

in Ø 14–18 cm

60.2

58.4

74.1

86.5

90.6

96.8

in Ø 18–26 cm

63.6

66.6

78.5

106.3

114.4

111.0

in Ø over 26 cm

66.4

67.5

83.5

106.5

114.3

113.3

Significant price rises were also recorded in the deciduous sawlog segment, including prices of aspen roundwood in diameter 18–24 cm ( 55 % or 35 EUR/m3 on average), black alder sawlogs in diameter 18–24 cm (48 % or 29 EUR/m3), black alder sawlogs in diameter over 24 cm (46 % or 33 EUR/m3), packing timber (39 % or 24 EUR/m3), and veneer logs of category A (37 % or 55 EUR/m3). Significant increases were also recorded in the purchase prices of birch sawlogs in diameter 18–24 cm (33 % or 27 EUR/m3), birch veneer logs of category B (31 % or 34 EUR/m3), birch sawlogs in diameter over 24 cm (30 % or 32 EUR/m3), and aspen sawlogs in diameter over 24 cm (23 % or 20 EUR/m3).

Average purchase prices of deciduous sawlogs, veneer logs, packing timber (EUR/m3, excluding VAT)

 

2020

2021

2022

first half

second half

first half

second half

first half

second half

Birch sawlogs

 

 

 

 

 

 

in Ø 18–24 cm

47.7

49.3

47.2

51.2

82.2

109.7

in Ø over 24 cm

71.0

68.4

80.1

91.6

107.6

139.9

Black alder sawlogs

 

 

 

 

 

 

in Ø 18–24 cm

34.0

30.1

37.7

43.2

61.2

90.6

in Ø over 24 cm

45.1

47.0

49.4

62.2

72.0

105.5

Aspen sawlogs

 

 

 

 

 

 

in Ø 18–24 cm

42.1

47.4

47.9

55.6

64.7

100.1

in Ø over 24 cm

54.5

57.6

61.6

74.4

90.0

110.4

Birch veneer logs

 

 

 

 

 

 

Category A

99.9

91.4

103.1

114.7

150.9

206.1

Category B

69.1

69.2

79.7

83.2

109.0

143.2

Packing timber

37.0

37.2

43.6

46.5

61.9

86.1

In the second half of 2022, compared to the second half of 2021, before the war but when economic development was hampered by the COVID-19 pandemic, a rise was observed in the purchase prices of all roundwood on the timber market. The most notable increase in the coniferous sawlog segment was recorded in the purchase prices of spruce sawlogs in diameter under 14 cm (of 56 % or 29 EUR/m3 on average), pine sawlogs in diameter under 14 cm (55 % or 33 EUR/m3), and pine sawlogs in diameter 14–18 cm (31 % or 26 EUR/m3). Purchase prices of other coniferous sawlogs grew by 3–12 %.

During the period, the highest rise in the deciduous sawlog segment was recorded in the purchase prices of birch sawlogs in diameter 18–24 cm (114 % or 59 EUR/m3 on average), black alder sawlogs in diameter 18–24 cm (110 % or 47 EUR/m3), and packing timber (85 % or 40 EUR/m3). Purchase prices of other deciduous sawlogs grew by 48–80 %.

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