September 22, 2021

Biology Reporter

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Wood prices are at an all-time high.  The Ministry responds to the call of the industry

Wood prices are at an all-time high. The Ministry responds to the call of the industry

The Ministry of Climate and Environment noted a call from the timber industry to limit the export of this raw material. “We are in talks with the timber industry and state forests to develop solutions regarding timber market disruptions; a team has also been set up to support entrepreneurship in the state forest,” the ministry reported.

The timber industry has appealed for the adoption of rules for the sale of timber, which will allow to limit the export of timber. In her opinion, Polish wood is exported on a much larger scale than the state reported to the foresters, which partially pushes the prices of wood raw materials to record levels.

In the industry assessment, timber prices are currently at all-time highs, which is strongly felt by, among others, the construction market, the furniture sector, the window and door joinery market and the paper market.

Reducing timber exports – Ministry’s answer

When asked by PAP about the attractiveness of the industry, the Ministry of Climate and Environment admitted that “due to the situation in the world and the increasing demand for wood, the timber market has been disrupted”.

“Polish companies have also come under great pressure. Data from the Central Statistical Office and the National Revenue Administration indicate that we already have an increase in exports of roundwood, especially to the German and Chinese markets. Solutions in this area” – the ministry noted.

However, the ministry also emphasized that the state forestry does not export timber, does not promote its presentation abroad, does not seek foreign customers, and does not have structures in its enterprise responsible for serving foreign customers and exports.

“At the Ministry of Culture and National Heritage, talks are being held, including with representatives of industries that have issued an appeal. In response to the current situation, on August 5, 2021 the Director General of Forestry of the State established a national team to support entrepreneurship in the processing of wood raw materials “- informed the Ministry of Culture and national heritage. As mentioned, the goal of the team is to identify obstacles and threats to the work of entrepreneurs who carry out economic activity on the territory of the Republic of Poland, based on the need for wood raw materials. “The team includes, among others, representatives of organizations representing entrepreneurs from the timber industry,” the information from the ministry added.

At the same time, the ministry pointed out that wood industry experts cite the increase in timber prices in Poland as the reason for the rise in timber prices in world markets, especially in the United States, where timber construction dominates. “The financial reports of the Polish timber companies confirm that the industry is booming, and it achieves very good sales results” – the assessment of the ministry.

In his opinion, “state forests are not responsible for the current increase in prices for wood and semi-finished products on the Polish market, since they do not have a significant impact on prices in stores or wholesalers.” For example, the price of the OSB board is indicated. The ministry’s response confirmed that “the price of wood used in its production increased this year by only 3 percent, while the price of this product in stores increased by 10 times” – confirms the ministry’s response.

In the previous information sent to the PAP, the ministry estimated that “the growth in average prices is not strong, as prices have risen by an average of about 3 percent,” while “inflation in 2021 will be around 4 percent.”

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Industry position

According to industry organizations, such as the Polish Association of Windows and Doors (POiD), the Polish Chamber of Commerce of the Wood Industry (PIGPD), the Polish Chamber of Commerce of Furniture Manufacturers (OIGPM), the Polish Roofing Association (PSD) and the Polish National EPAL Committee, the current sales rules need to change wood To reduce the export of this raw material.

According to the industry, 4 million cubic meters leave Poland every year. While the state forests get about 40 million cubic meters. Wood. “From 2018, the increase in timber exports from Poland has jumped to unprecedented levels. This means that Polish timber is being exported on a much larger scale than the state reported to foresters,” the organizations wrote.

Main image source: stock struggle

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