The lower price of paper pulp pushes the price of eucalyptus down

Good prices achieved in recent years in the sector lumber It seems they are starting to cool down. And they do this in the case of eucalyptus and conifers, although the prices of the latter fall more in the north of the community than in the south. The change in cycle is not surprising in a sector that is used to dealing with the rudder changes of the global market that fully affect the prices forest owners receive for their trees. Reasons for this latest reversal include downsizing the price of paper pulp on international markets — although it still remains above $1,000 per ton — and stock which companies keep in their warehouses after the cutting boom of recent years.

It must not be forgotten that it is felling of eucalyptus and pine have increased by 17% in the last two years in Galicia, driven by the good prices achieved by the wood of these two species. Namely, according to data from Galician Forestry Association, the owners of the mountain collected about 348 million euros last year, of which 92.7 million from cutting eucalyptus, 149 million from coniferous trees and 6.5 million from hardwoods. But that’s it, as explained by Forestal Díaz Casariego “This year there was no winter and the machines managed to climb the mountain cut. According to ISO, companies have a lot of wood». In addition to that, we should add the interruption of the activity caused by drought.

As a result, both loggers and forest owners confirm reductions of around 2 euros per ton in the case eucalyptus globulus and between 4 and 5 euros per ton in the case from nitens. These discounts are applied to prices that, according to Ramón Reimunde, president Galician association of wood producers (Promagal), “Last month in A Mariña Lucense they were between 33 and 34 euros per ton with bark and 40 euros per ton peeled.” From Galician Forestry Association They estimate that the average prices now range between 29 and 32 euros per ton in the case globulus with bark, the amount to which EUR 2 should be added in the case of certified trees. Those same rates are the ones offered for nitens no crust.

But it seems that the decline has only just begun. “They warned us to sign contracts because prices will drop from May. We closed the contracts until last Friday, but we still don’t know what the price of eucalyptus will be from now on,” explains Julio Aneiros, president Association of producers of Madeira de Cedeira (Promace), which confirms that the companies cited the decline in the price of pulp as a reason to justify the decline. It is about the fact that their prices, despite the drop, are still at values ​​significantly higher than those recorded a few years ago. “More than $800 or $900 per ton is a good price. The problem is that uncertainty is created that forces companies to be conservative in their price offer»point of Galician Forestry Association.

It also helps that much of the wood they buy is still in the forest and they don’t know how the pulp market will react in the future. It is common for loggers to wait until they have a certain number of hectares in an area to start logging.

Bor does not escape from the descent

eucalyptus tree He is not the only one to see a drop in prices. “North of the community it falls between 15 and 20%, not south between 10 and 15%,” assessment from Galician Forestry Association. And from Promagal, they explain that there was an area of ​​A Mariña where the price fell by more than 10 euros per ton.

Given this scenario, the sector points out that owners will most likely curb logging until the price improves, which may not happen until the companies announce stock which they stored.