In June, decrease of prices for roundwood in Russia amounted to 0.9% on the average

Jul 14, 2009. /Lesprom Network/. In June, decrease of prices for roundwood amounted to 0.9% on the average, as reported by the Analytic Service of Lesprom Network. Average price of one cubic meter of softwood sawlog (pine, spruce), 16-30 cm in diameter and 4-6 m in length was 1% more than in May; one cubic meter of hardwood sawlog (birch), 16-30 cm in diameter and 3-6 m in length cheapened by 3%; one cubic meter of spruce pulpwood, 4 m in length and 6-16 cm in diameter (1st, 2nd and 3rd grade) gained 2.2%. Price of one cubic meter of common pine pulpwood (4 m in length and 6-16 cm in diameter, 1st, 2nd and 3rd grade) was 1.6% more than in the previous month; one cubic meter of hardwood (birch) pulpwood with a diameter of 6-16 cm and length of 6 m (1st, 2nd and 3rd grade) lost 2.7% in price. Prices stated in the review may vary depending on delivery volume, 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 June, prices on the spot market of softwood sawlog started stabilizing and grew by 1% on the average. This is mainly due to the fact that amid crisis conditions wooden housing construction is becoming more widespread, as brick houses are far more expensive. Hardwood sawlog lost 3% in price on the average, as it is in less demand. Cost of pulpwood grew by 1% on the average. Harvesting companies try not to decrease prices, as selling pulpwood is becoming less and less profitable. In the Siberian federal district, start of the construction season resulted in appreciation of sawlog. Softwood pulpwood prices were also higher than in May, while hardwood pulpwood depreciated a bit. In the Ural federal district, June prices for softwood sawlog grew. Harvesting companies note that fewer companies were selling raw wood in an effort to process it wholly by themselves, therefore, supply of sawlog on the market decreased. Prices for pulpwood fell. Producing companies say that demand of pulp and paper mills for this product increased a bit, however, procurements were made at lowered prices. In the North-Western federal district, June saw growth of prices for softwood sawlog, which is due to increase of demand for sawn timber during the construction season. At the same time, prices for pulpwood fell. In the Central federal district, June saw different trends. Prices for sawlog fell. It is possibly due to the fact that last month there was quite steady growth (+5.5%). Pulpwood appreciated this time. Harvesting companies try to stabilize prices and sell pulpwood using advance payments only, otherwise raw wood sales become unprofitable. In the Volga federal district, softwood sawlog prices remained flat, while hardwood sawlog depreciated. This is due to lower demand for this product. Pulpwood products also cheapened slightly. 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.