The outlook for the construction industry is bleak and sawmills are beginning to feel the first signs of weakening markets. Tensions related to sawn softwood prices became apparent at the end of 2011, and a downward trend in prices is now setting in progressively. Imported sawn wood is sold in France at prices 10 euros/m3 lower than those charged by French producers. As pointed out by Fabrice Chauvin, the eponymous president of a limited company, for large businesses, be them integrated or associated, this is springtime, the ‘big market’ era. Which means that, on the wholesale market, large retailers are launching consultations with important wood processors, with low-price contracts for 3-4 months or commercial gestures from suppliers such as free timber processing in exchange for keeping prices stable. While prices for superior quality timber (classes 0 and 1) remain stable on account of its relative scarceness, those for standard quality timber frame (class 2) are a matter of dispute. Things are not going any better for the packaging industry. On this overnight market, order books get full at the last moment and many sawmillers are trying to reduce stocks in order to bail out their ailing accounts. Under the circumstances, a decline in business activity is forecast for the second quarter of 2012.
SOFTWOOD MARKETS IN FRANCE
Price of Spruce/Fir sawn timber in France
Price EXW/M3 VAT excl. |
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Index 01/05/2012 | Price 01/05/2012 | change 01/2012-05/2012 |
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Quality 1 (thickness 27mm) |
100 | 250 EUR | stable | |
Quality 2 (75x225, 63x160mm) |
100 |
187 EUR | -3% à -5% | |
Quality 3 (thickness 18/27mm) |
100 | 137 EUR | -5% | |
Quality 4 (75x225, 63x160mm) |
100 | 130 EUR | -5% |