Germany: First Cord/Industrial Wood Contracts for 2011

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After first conclusions for coniferous cord wood and first price negotiations in Northern and Eastern Germany, 2011 prices slightly below the peak of summer 2010 may be expected.

Outside the strongholds of the wood based panel industry in eastern Germany, contacts for the assortment ISF/K are between € 86 and 88 per tonne (atro, free alongside forest road), corresponding to € 43 and 44/m³ or € 27 and 28.50/stacked m³. Depending on the exchange rate fixed cubic meter prices are even less.

Near the sites of the wood and pulp industry ISF/K-prices rise up to € 29/ stacked m³ and ISN-prices (OSB) to € 31/stacked m³. For F/K-wood price wishes of € 30/stacked m³ were postponed into the next year. Often, pellet plants are not able to go these prices. Quantities demanded are less than in the previous year.

In South-Germany there are still no contracts, with exception of the conclusion for Beech pulpwood. In other states like Hesse, Thuringia and Brandenburg, the vision of the forestry side having in mind Beech pulpwood prices between € 72.25 and 73.50 per tonne (atro, free alongside forest road), which corresponds to € 48.50 to 49/m³, was almost reached. Mecklenburg might be the front-runner with a price of € 51/m³. In the light of the prices for weak or low-quality beech logs, this hardwood season many forestry operations might save the necessary effort for keeping sawlogs and might produce more pulp- and fuelwood.

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