Positive signs on the timber price for 2022 from the USA

Wood prices

Will the persistent price increases in the wood sector finally come to an end? There is still a lot of uncertainty around the world about future market prices, but the first signs from the United States are already positive.

Harbour twilight
Stacked wood side view

Let's rewind to the middle of 2019: In the United States, the building industry has undergone a complete metamorphosis. The green aspect is gaining ground and wood is being chosen en masse as a building material. An increase in the demand for wood of no less than 25% was the result. In addition, former President Trump decided to impose a tax on the import of Canadian timber. As a result, American wood suppliers turned en masse to foreign markets, especially to the European and Asian markets, and stocked up on wood.

Big bucks were made and stocks in Europe plummeted. The bark beetle and the unfavourable climatic conditions in the European forests made the situation even worse. An increased demand and a reduced supply, that could only entail price increases. In fact, it is expected that in this last quarter of 2021, the price of wood will increase by another 7 to 12%.

But we also have some good news: there seems to be light at the end of the tunnel. The latest information we have received indicates that prices will start to decrease in the US market. European markets will therefore hopefully soon be able to recover to some extent. Nevertheless, a new equilibrium price will emerge, as prices have barely adjusted in recent years, even before the crisis.

The unprecedented heights we are now reaching will return to normal. However, an exact date cannot be set. The timber sector is in fact dependent on various external factors. A new lockdown could slow down production again, Asian container prices could be kept artificially high or bad ecological conditions could throw a spanner in the works. But there will certainly be stability, that's for sure.

Light at the end of the tunnel

Therefore it is important that you regularly seek advice from your wood supplier. He or she will not only give you advice, but will also be able to help you buy the right product at the right price or offer you an alternative. So, patience is still required, but we will get there.