WRQ Reveals Extreme Volatility in German Log Market

SEATTLE (Scrap Monster): The latest Wood Resources Quarterly (WRQ) market report indicates extreme volatility in German log market during the initial six-month period of 2020. The export market demand surged to record levels, whereas the domestic market witnessed shortage in fresh green log supply.

The softwood lumber exports from the country have recorded dramatic jump over the past five years. The exports have surged higher from 2.1 million cubic metres in 2014 to 7.4 million cubic metres in 2019. The exports had hit new peak in Q3 last year, mainly on account of oversupply of logs. The total exports until April this year have surged higher by almost 38%, compared with 2019. This is despite reduction in exports during the winter season.

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China has emerged as the largest destination market for German log exports. Almost 50% of German log exports till date this year were shipped to China. The country imported almost 2.4 million cubic metres of logs from Germany during the initial four-month period this year. The prices for logs shipped to China have been relatively higher when compared with other markets, WRQ noted.