Russian roundwood prices decreased by 0.3% in August

Sep 17, 2009. /Lesprom Network/. Russian roundwood prices decreased by 0.3% on the average in August, as reported by the Analytic Department of Lesprom Network. Average price of one cubic meter of softwood sawlog (pine, spruce) with a diameter of 16-30 cm and length of 4-6 m was 2.6% higher than in July; one cubic meter of birch sawlog with a diameter of 16-30 cm and a length of 3-6 m grew 0.6%; one cubic meter of spruce pulpwood with a length of 4 m and a diameter of 6-16 cm (1st, 2nd, and 3rd grades) cost 3.2% less. Price of one cubic meter of common pine pulpwood with a length of 4 m and a diameter of 6-16 cm (1st, 2nd, and 3rd grades) decreased by 2%; one cubic meter of birch pulpwood (6-16 cm, 6 m, 1st, 2nd, and 3rd grades) lost 1.5% in price. Prices stated in the review may depend on delivery volume, product destination and guaranteed frequency of deliveries. Prices are taken with roundwood producers on the terms of selling one cubic meter of raw wood at the nearest loading station in the carriage. Stipulated volume of delivery is 500 cubic meters. In August, spot market prices for sawlog increased by 1.3% on the average. Growth of prices is primarily due to seasonally high demand for the product because of the construction season. Another factor influencing prices was decrease of raw wood supply: summer harvesting has already finished, while winter one is yet to come. Pulpwood prices decreased by 2.2% on the average which is due to unsteady demand for the product. In the Siberian federal district, sawlog enjoyed steady demand. Pulpwood prices remained unchanged. In the Ural federal district, softwood sawlog appreciated considerably. Harvesting companies note high demand for the product due to the high construction season. Hardwood sawlog and pulpwood prices remained unchanged. In the North-Western federal district, average price for softwood sawlog increased by 0.7%. Pulpwood prices remained flat. Most companies note that they sell raw wood only via old long-term contracts. In the Central federal district, sawlog prices grew, which is due steady demand for the product. Pulpwood prices decreased, as most of the pulpwood volume remains unsold. In the Volga federal district, August prices for sawlog increased, while pulpwood prices, on the contrary, decreased. Harvesting companies note that pulp and paper companies limit their procurements, as raw wood market is oversaturated. Analytic Department of Lesprom Network specializes in forest industry market research. The department gathers statistic data on timber processing and pulp & paper companies. Among Lesprom Network clients are largest Russian and foreign timber industry and investment companies.