© Timber-Online
There is consensus among the majority of forestry companies and sawmills that log prices will continue their upward trend in the coming months.
In the most recent sawmill survey, 71% of participants stated that they expect purchasing prices to rise. This week, 54% of forestry companies said that they expect an increase in sales prices. 35% of respondents think that log prices will remain constant, and 11% assume that they will fall in the first half of the year.
Increased costs
When it comes to costs, forestry companies report a significant increase in costs for harvesting and personnel, whereas inflation is by no means reflected in higher log prices. In the current six-month period, 95% of respondents either expect constant wood harvesting costs (52%) or an increase (43%). Assessments regarding transport costs are similar: 53% of survey participants think that they will stay the same, while 45% assume that the cost of log transport will increase in the next six months.
Negative development of the business situation
Assessments of the business situation have become much more negative in the second half of 2023. Most recently, 29% of the surveyed companies described their business situation as bad, 55% as satisfactory and 17% as good. In 2019 and 2020, sentiment was even more negative. At that time, up to 77% of respondents reported a bad business situation.
As for the current half-year, 70% of forestry companies expect a satisfactory development of their business situation, while 17% think that there will be a negative development. 13% expect an improvement.
A more mixed picture emerges when it comes to assessments of sales. 20% predict an increase and 27% a decrease in sales. 53% of respondents do not expect any change.
