According to the results of the latest exchange trades for delivery in the fourth quarter, the branches of the State Enterprise “Forests of Ukraine” sold 99% of the offered timber products.
This is reported by Finway
Price Dynamics for Timber and Firewood
According to official data, the average cost of round timber has risen to 6.8 thousand UAH per cubic meter. For comparison, in the third quarter, the price was 5.7 thousand UAH/m³, and in the second quarter, it was 5.4 thousand UAH/m³. As for industrial firewood, its average price has increased to 2.3 thousand UAH/m³ (up from 1.8 thousand UAH/m³ in the third quarter and 1.5 thousand UAH/m³ in the second).
“All available resources (except for firewood for the population, social sector, and resources for the Armed Forces of Ukraine) are put up for auction, and the stock of timber in warehouses has decreased by 200 thousand m³ compared to the beginning of the year.”
Features of Timber Sales
All available resources, except for firewood for the population, social facilities, and the Armed Forces of Ukraine, are put up for auction. The stock of timber in warehouses has decreased by 200 thousand m³ since the beginning of the year. The small percentage of products that buyers have refused is immediately redirected to additional auctions.
Timber for which there is either no demand or an excessively high price is put up for Dutch auctions, where the market value of the lot is determined.
In the second half of the year, 1.5 million m³ of timber is supplied to clients under forward contracts at a fixed price, allowing producers to hedge against price fluctuations in advance. Timber harvesting over the past three months has consistently exceeded 1 million m³ per month.