In the first two weeks of the second quarter, the enterprises of the State Enterprise "Forests of Ukraine" sold 723 thousand cubic meters of timber worth 3 billion UAH, doubling their sales percentage compared to the same period in 2024, reported the press service of the state enterprise on Facebook.
"The sales percentage has nearly doubled compared to the same trades last year! Almost all round timber is being taken immediately - 96% of the offered resource has been contracted. The average price increase for round timber is 20%. Therefore, the total value of contracts signed exceeds 300 million UAH, surpassing the total value of the resources offered at the starting price," the statement said.
The state enterprise noted that the highest demand is observed in the alder-birch segment. Wood processors not only purchased 100% of the offered volume but also raised prices by more than 70%. Starting prices for pine timber at auctions increased by 13%, with 98% of the offered pine volume contracted. Industrial wood fuel had slightly lower demand (82% sales, with an average price increase of 9%), while the demand for fuel wood was extremely low - the sales volume was minimal.
"The country is successfully going through the heating season, and no one is in a hurry to stock up on firewood for next winter," the state enterprise noted.
Andriy Tsyganok, Executive Director of the Association of Wood Processing Enterprises of Ukraine, identified among the main trends of the season the entrepreneurs' expectations of energy supply issues by the end of 2024, which is why they did not form significant raw material stocks, fearing production downtime. However, the energy system held up, and economic activity began to recover. At the same time, he mentioned that the demand for Ukrainian timber in the European market has resumed.
Additionally, some market participants predict an increase in currency exchange rates in the second quarter, which is why they are trying to convert funds into tangible assets, particularly in forest products, in advance. This intensifies demand and creates additional pressure on the market.
"For a long time, the market was stagnant; the recovery of demand only began at the end of last year, prompting the company to work on increasing the supply of timber in the market. This is very challenging, considering environmental restrictions, the inability to conduct forestry activities in mined territories and frontline zones, as well as a massive labor shortage among suppliers," the "Forests of Ukraine" concluded and promised to mobilize all resources to meet consumer needs.