Estonian timber prices increased by 92.7%, the timber market under the conflict between Russia and Ukraine.

Estonian timber prices increased by 92.7%, the timber market under the conflict between Russia and Ukraine.

Release date: May 12, 2022

According to the data released by the Estonian Private Forest Center (emk) timber price overview, the prices of all timber categories except coniferous pulp reached an all-time high in the first quarter of 2022.

The impact of the situation in Russia and Ukraine has pushed timber prices to unprecedented heights. Emk said that it is particularly worth emphasizing the appreciation of birch and poplar pulp wood and the sharp rise in wood prices.

“Even the absolute price of conifer logs has reached a level we couldn’t even imagine three months ago,” the center said. “The price of deciduous logs is very high.”

In the past three quarters, the price growth of pulp market has accelerated rapidly. Within three months, the price of conifer pulp and wood increased by 53%. During the same period, birch prices rose by nearly 33% and poplar prices rose by more than 44%.

Like other categories, firewood has become more expensive, but the price has increased more. This is due to the sharp rise in energy prices since last year, and firewood prices have now responded at the beginning of this year.

Environment minister erki Savisaar said in an interview that the government should have a strategic reserve of wood similar to other fuels. The Ministry is ready to discuss increasing logging to alleviate the material shortage in the industry and avoid large-scale bark beetle damage.

Due to the relatively low price of firewood, small inventory and increased demand, the pressure caused by the situation in Ukraine has increased. Therefore, by the end of March, the cost of three kinds of mixed firewood had increased to 45.38 euros per cubic meter. “This is an incredibly high price,” emk said. “This has increased by 52.4% in three months and 92.7% year-on-year.”

In the first quarter of 2022, Estonia completed 440 forest land transactions, involving a total of 3654 hectares of forest land ownership changes. The number of transactions and the total number of hectares sold decreased significantly. The amount of forest land sold by private individuals to legal persons has also decreased significantly. At the same time, the average cost per hectare has increased.

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