Sawlog market: Caught between shortage risks and further price declines

August forecasts for sawlogs remain uncertain. On the one hand, sawmilling companies have received a clear signal: following price reductions (including in July), their log yards have been filling up, with sawlogs being actively delivered. This may suggest that the current price level is not critical and could fall further in August.

On the other hand, reports are coming from timber harvesting companies that have either suspended summer harvesting altogether or significantly reduced it. Similar reports are coming from both the European part of Russia and Siberia.

Under these conditions, sawmilling companies are reluctant to increase pressure on timber harvesting companies: the risk of shortages in sawlogs and pulpwood this autumn remains high. At the same time, they are not ready to fully rule out further price declines.

Read more in the monthly price review “Russian Wood Resources Report.”