Emerald Boom: Estonia Foresees Surge in Softwood Lumber Prices by Early 2024

"Softwood Lumber Prices in Estonia Drop by Nearly Half, but Producers Anticipate Small Increase in the New Year"

The price of softwood lumber in Estonia has seen a significant decrease compared to last year, with prices almost half as expensive. However, producers have also reduced the volumes, which could potentially lead to a small price increase at the beginning of this year. Toomas Tauk, the manager of the Estonian wood retailer Puumarket, highlighted that the decrease in local and Scandinavian construction volumes has contributed to the current lower wood prices. In fact, wood prices have become nearly 50 percent cheaper than they were a year ago.

Tauk emphasized that wood prices have moved in the opposite direction of general inflation throughout last year, and this trend continued until the summer. During this period, it became evident that there was a clear oversupply of softwood lumber in the market. As a result, prices started to decline, benefitting consumers and construction companies alike.

The decrease in local construction volumes has been a significant factor in the decline of wood prices. The construction industry in Estonia, as well as in neighboring Scandinavian countries, experienced a slowdown in activity. This slowdown directly impacted the demand for softwood lumber, leading to a surplus in the market. As a result, producers were forced to reduce their volumes in order to stabilize the market.

However, this decrease in supply may not be sustainable in the long term. As the market stabilizes and demand gradually picks up, it is expected that producers will need to increase their volumes to meet the growing demand. This could potentially lead to a small price increase at the beginning of this year.

Despite the potential price increase, the current situation presents an opportunity for consumers and construction companies to take advantage of the lower wood prices. It is advisable for those in the industry to plan their projects and purchases accordingly, taking into consideration the potential price fluctuations in the near future.

In conclusion, the price of softwood lumber in Estonia has experienced a significant decrease compared to last year. This decrease can be attributed to the decrease in local and Scandinavian construction volumes, which has resulted in a surplus of softwood lumber in the market. However, producers have reduced their volumes to stabilize the market, potentially leading to a small price increase at the beginning of this year. It is important for consumers and construction companies to consider these factors when planning their projects and purchases in the coming months.

John O Mahony

John O Mahony

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