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April 22, 2020

Sharp fall in roundwood prices in Latvia

Sharp fall in roundwood prices in Latvia

The bark beetle infestation which hit the Central European countries resulted in overproduction and a sharp fall in prices determining Latvian producer to adjust prices.

In the 2nd half of 2019, compared to the 1st half of 2019, the average purchase prices both of softwood roundwood and of hardwood roundwood fell considerably in Latvia. The largest drop was recorded in the prices of black alder sawlogs in diameter 18–24 cm, while the smallest decline was observed in the prices of aspen sawlogs in diameter 18–24 cm.

Compared to the 1st half, in the 2nd half of 2019 the sharpest drop in softwood roundwood sector was registered in prices of pine and spruce sawlogs in diameter under 14 cm (on average of 19 % or 11 EUR/m3), pine roundwood in diameter 14–18 cm (on average of 18 % or 13 EUR/m3). Smaller decrease was recorded in prices of pine sawlogs in diameter 18–26 cm, spruce sawlogs in diameter over 26 cm (on average of 14 % or 11-12 EUR/m3), pine round timber in diameter over 26 cm (on average of 13 % or 10 EUR/m3). Prices of spruce sawlogs in diameter 14–18 cm and 18–26 cm reduced the least – on average 9 EUR/m3.

After the 1st half of 2019, when prices in the European timber exchange were unusually high and, despite that in the conditions of warm and wet winter logging was more complicated and more expensive, there was a downturn in purchase prices of roundwood in the 2nd quarter of 2019.

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