Good demand prevents sawmill residue prices in Germany from falling

14 August 2017

Buyers had hoped for a price reduction for sawmill residues in Germany in the third quarter. But demand is good and prices stayed the same as in the second quarter.

Hardly any change occurred on the German sawmill residue markets in the transition from the second to third quarter of 2017. Various buyers in the pellet and chipboard industry had set their sights on a reduction at the beginning of the negotiations for deliveries in the third quarter.

In many cases, however, this objective has failed and the majority of the contractual prices for the third quarter were rolled over at the existing level. Buyers only succeeded getting minor price reductions in scattered instances. Due to the uncertainty about the future market development, a few buyers only concluded contracts for one month until the end of July.

Sawmills continue to operate at a relatively high level. A variety of companies have introduced additional shifts and reduced the originally planned duration of the plant holidays. Receipts of orders and deliveries are being described as very good.