German Beech Market in Detail - Lack of Exports

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The beginning of the hardwood season has been delayed this year. Anyway in the last years the beginning of each season has moved further and further back. One reason for this is the fact that the completion of the last season lasts even longer, according to the sales manager of the State Forests Rhineland-Palatinate, Norbert Heidingsfeld. Consequently no new agreements have been signed  for hardwood. The main reason for this year's late start of the season is however related to the absence of the exporters. Inquiries without price have been noticed in North Rhine-Westphalia.  These indicate a high degree of uncertainty on the market.

Also in the eastern German provinces, the beechwood market focuses especially on Germany. The prices of the few acquisitions range between  75-77 EUR / cbm for BC goods QTY. 4 +. So far there has been no serious demand from the export sector. Consequently: during the last two weeks exporters made new inquiries, but only relating to the amounts of contact. The price level of the inquiries lies at 75-80 EUR / cbm. As a consequence, suppliers reduce, whenever possible, the beechwood quantities.  An entrepreneur said: "We did not sell any beechwood. But we want to finish the sales by the end of the year". The reason for this is a growing concern related to a further fall in the beechwood price by the end of the year.

In what concerns the exporters, there are two factors. Large amounts of unprocessed wood have been stored, especially in China. The market is full. China's export market is in crisis because in the European and American countries there is no demand for finished products. Therefore, price-consciousness in China is currently very high. On the other hand, China still has to fight the still high freight costs. These have been drastically increased in May, after the shipping companies fought over prices.

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