Construction industry still in recession - roundwood market saturated, according to the latest report from Landwirtschaftskammer Oberösterreich.

The current, weak economic growth of 0.2% is the highest in one and a half years. It is supported by private consumption and the services sector, but the manufacturing sector and construction are still in recession. Current estimates even predict a further deterioration in the coming months.

Softwood sawn logs
The locations of the Austrian sawmill industry are very well stocked with softwood sawn logs, also due to the shutdowns over the May holidays. Demand is therefore currently low. Although timber harvesting activities are currently focused on processing damaged wood, forest warehouses have nevertheless been created in parts of Austria due to a lack of demand and a high regional supply. In addition, the weather in recent weeks has restricted the accessibility of forest roads in some places. Prices have fallen at the upper price range in Carinthia, Upper Austria, Tyrol and Vorarlberg. The leading range of spruce A/C 2b+ has a wide range across Austria between 83 euros and 107 euros per FMO. Demand for larch is very brisk and continues to exceed supply, with prices mostly remaining the same. Due to seasonal factors, pine production should only take place in close coordination with the buyer and with a guarantee of prompt removal in order to avoid quality losses. Here, too, prices have been reduced regionally.



Industrial wood
The warehouses of the paper, pulp and board industries are also well stocked. The removal of industrial roundwood quantities provided is described as continuous, with the exception of the south of Austria. Prices are stable. However, with values ​​between 63 euros and 98 euros per tonne dry, they also show a very large range here. The prices for red beech pulpwood have generally been adjusted to the Austrian level and are between 80 euros and 100 euros per tonne dry.

Energy wood
The situation on the energy wood market is currently tense. Additional quantities can hardly be sold. Low consumption in the previous heating season and correspondingly high stock levels as well as a large supply, partly also from industrial roundwood, are dampening demand.

The cool and wet weather of the past few weeks has slowed the development of bark beetles somewhat. Nevertheless, the number of catches by the monitoring system is exceptionally high. In addition to the spruce bark beetle, the copperplate engraver is also increasingly found. Therefore, pole wood and the crown area should also be checked more closely for standing infestation.

All prices stated refer to business transactions in the period May - early June 2024 and are net prices to which sales tax is to be added. The following tax rates apply to the sale of wood to entrepreneurs: 13% for all ranges with a flat rate of sales tax, 13% for energy wood/firewood and 20% for roundwood with standard taxation.

Source:  lko.at