Oak continues its momentum in France

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The oak log price evolution is not followed by lumber

For French forest owners there are some good news. For French sawyers, it's rather the opposite. The latest public auction organized in France in mid 2015, shows no pause in the oak roundwood market. Actually, the contrary can be noticed, with new tensions on supplies to sawmills resulting in significant price increases in many French production areas since the beginning of 2015.

In the second quarter of the current year and in most ONF (France’s National Office of Forests) auctions, unsold volumes have not crossed the 5% mark. In one year, the average price increases in French oak forests is around 20% (see table below). It even reaches 30% in some disputed sales, as was the case in Châtillon sur Seine (Côte-d'Or department in Eastern France) on 17 April. In some regions (Franche-Comté, Burgundy, near Belgium), the increase in prices appears higher on small diameters and on secondary qualities. ''Without any doubt, it is the influence of log exports to China,'' a sawyer commented. 

Olivier Vuitton, managing-director of the Jura region sawmill with the same name gives his analysis of the oak situation in France: ''The market for sawn timber in France is characterized by a demand in large volumes, in virtually all product categories and across our catchment area (France, Switzerland, Benelux, Germany, UK ...). But this active demand does not result in high enough lumber prices which can offset the sharp price rise of raw materials in the last two years.'' His other sawyer colleagues noticed the same thing, noting also the beneficial effects of the decline of the euro against the dollar, particularly in Asia. 

On the ash side, demand remains active on high-quality logs (A and B) which are being traded at high prices (standing, from 100 euro/m3 to 150 euro/m3 or more for A qualities). However, secondary assortments seem to suffer from the Chinese sanitary embargo in 2014. Therefore, prices in this category fall and unsold volumes are going up. 

As for the beech, it still evolves in a soft European market. Exports of logs and lumber to the Maghreb, the Middle East and Asia reflect a weak demand in France and neighboring countries. At the last June auctions, log prices remained relatively stable compared to sales of last fall. For beech, little changes are expected this autumn.

Strong price increase for oak in Franche-Comté region

Price in euro/m3 on foot; ONF's public auctions in Courlaoux (Jura)

 

12/06/2014

19/06/2014

Change in one year

1 m3

42 64 +52%

1,5 m3

88 110 +25% 

2 m3

122 146 +19,6% 

2,5 m3

148 174 +17,6% 

3 m3

170 196 +15,3% 
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