The timber market will be under pressure again this year. In 2021, the price of wood increased enormously. By the end of 2021, timber prices stagnated, but in 2022, the price increase will continue. In addition to the existing scarcity created in 2021 by US and Chinese demand and limited production related to COVID-19, Russian government sanctions took effect on 1 January, putting further pressure on Russian timber imports. Since the war in Ukraine, new timber from Russia, Ukraine and Belarus has been unavailable.
Timber price increase 2021
By 2021, timber prices were already soaring. This had several reasons. The COVID-19 virus and all additional measures restricted timber production. Although supply fell, demand actually rose sharply. Both private demand in Europe and demand from the United States and China caused a big price increase in 2021. By the end of 2021, wood availability increased slightly. This was short-lived due to new developments in 2022.
Wood price 2022
Wood prices are set to rise further in 2022. On the website of Palletcentrale, which like Bode Packaging is part of the Palletcentrale Group, there is a detailed article on the expectation regarding timber prices 2022.
The increase in 2022 is currently driven mainly by:
- Existing tightness arising in 2021
- Export sanctions by Russian government
- The war between Ukraine and Russia
- Shortages of trucks and drivers in the transport sector
Timber is currently extremely scarce and prices will rise. The scarcity created in 2021, transport problems, export sanctions by Russia, and the very consequential war between Ukraine and Russia and subsequent EU sanctions make for an exceptional situation.