Much earlier than last year, this year's order season for hardwood logs and sawlogs will start. Tentative orders in the last season and constraints during the log harvest due to the harsh winter of 2009/2010 have reduced wet storages at mills quickly.
About one house out of 10 in Europe is a prefabricated home as the European prefab quota increased in 2009 up to 11.07%. Prefabricated houses are becoming very popular among Europeans thanks to their numerous advantages such as eco-friendliness, affordable prices and the speed of the construction work.
But due to the global financial turmoil around the world, the growth on the European market for prefabricated houses will be dampened and cooled till 2010. Nevertheless it still remains quiet positive and keeps increasing annually with 3-5% according to the latest report by Interconnection Consulting, a marketing research company settled in Vienna.
With growling and grumbling, the price increases for rippled floorboards made of woods such as Asian Bangkirai are accepted by German consumers. The procurement gets increasingly difficult. In addition the weak euro is boosting prices. An increased supply of Asian alternative woods such Gerutu/Heavy White Seraya is also affected by the euro exchange rate. That currency effect alone causes price increases of 20%. But it does not diminish the good demand for deckings.
The gluelam prices in Germany are rising. But when asking the producers, they are not rising fast enough, meaning that the increase is not sufficient to compensate for the climbing softwood lumber prices.
As already predicted in the January forecast of the European Federation of the Parquet Industry FEP, the compiled figures provided by member companies and national associations indicate a decline in both parquet production volumes and consumption on the European market – this for the second consecutive time. FEP estimates that the share of parquet on the global European flooring market now is close to 6%.
While leading Swiss sawmills reacted on the Mayr-Melnhof Swiss Timber price initiative end of March and increased their prices as well, no effects on the log mobilization could be felt so far.
With better roundwood supply particularly of the large sawmills the supply of sawdust and wood chips improved in the past six weeks. Pulp mills, wood products industry and pellet plants were able to replenish their stocks in the last weeks. Unlike before Easter the raw material stocks now suffice few weeks, not only few days. In sawmills as well wood chips piles are increasing.<
According to a study, funded by the Federal Office for Energy (BFE) and Environment (BAFU), large quantities of fuelwood will continue to grow in the Swiss forests. In particular for hardwoods the study speaks about high potential, leaving open if it can be really used.
Shortly before the forestry and forest technology fair Interforst in Munich (July 14th to 18th) the manufacturers of forestry equipment and machines hope that the decline in sales has reached the bottom. In 2009 their industry had once again registered a sharp decline, this time 47 percent.
Softwood lumber prices in Germany were rising again. But this time for many sawmills that was not a reason to celebrate, since a lack of sawlogs cumbered their production.
