France: maritime pine prices spike in the south-west

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Pin maritime

Maritime pine price 15% up in a year (Foto: Robert Wood)

There is the maritime pine price hike in the French south-west. Gascon mill owners and those from across the Atlantic coast of France have not known such enthusiasm for many years. "Prices observed at the end of 2017 take us thirty years back," says André Bordes Vidal, an 98-year-old landowner who has been practicing forestry for more than 70 years.

On their side, industry recognizes that the current economic environment is very favorable to trade. This observation was made François Guiraud, president of the Federation of wood industries of Aquitaine (Fiba) at the Federation's general meeting held at the end of 2017. "After a drop in consumption in 2016, now market conditions encourage an increase in production, with both domestic and international prospects. "

In fact, with the exception of the wood energy sector, that has been struggling for three years now, most other products enjoy a rather encouraging business climate. In the sawnwood sector, after a production volume decrease observed in 2011-2016 in Aquitaine (activity down by 30%, 1 million m3 of timber sawn at the end of the period), the recovery has been there since the first quarter of 2017. High demand among pallet producers, who are the main outlet for maritime pine timber, explains this evolution. At the same time, construction has rebounded. "The forecasts for these two sectors are good for 2018," said Fiba.

In addition, the consumption of small diameter pulpwood increased by 1% in 2017. A renewed growth is also reported in the green chemistry sector. This good news also concerns particle board factories based in the Landes, which are running at full capacity. Finally, in the plywood sector, the growing demand, combined with the decline in the use of tropical timber, is stimulating activity.

Less timber, demand higher, prices spike

But the most important element determining the improvement in the maritime pine sector comes from lack of raw material. After two major storms that took place  one in 1999 and another in 2009 half of the wood stocks had been wiped out in the course of a decade. This scarcity of wood raw materials affects mainly large diameter assortments and it is in this specific sector that tensions appear especially pronounced at the timber auctions.

As a result of all these factors being combined, the French standing maritime pine prices soared. In fiscal 2017, long pole and sawlog prices increased by an average of 15%. Thus, at ONF auctions, after a decline of 3.5% to 8.5% depending on a product category, the standing timber prices increased on average by 14% in 2017. The volume of unsold goods (50% in 2016) fell down to 15% in the second half of last year.

An identical uptrend is seen in private forests with even higher increases (see table below). Thus, at the timber auction held on Nov. 29 2017 in Labouheyre (The Landes, France), 12 out of 56 articles were sold at prices that exceeded 45 euros/m3 (standing timber) and a record of 50 euros/m3 was attained.

Table:

MARITIME PINE PRICE CLOSE TO 50 €/M3 IN LANDES DE GASCOGNE

Standing timber bulk price in euros/m3 under bark

Auctions organised by the forestry expert of the South West France

Unit volume in m3

Q4 2016

Q2 2017

Q4 2017

Change over 7 months

Change over 12 months

0.5

32.5

37

37

+13.8%

+13.8%

0.75

34.5

37

40

+8.1%

+15.9%

1

35

39

42

+7.7%

+20%

1.25

37

38

44

+15.8%

+18.9%

1.5

39

40

45

+12.5%

+15.4%

1.75

40

41

46.5

+13.4%

+16.3%

2

41

41

47.5

+15.9%

+15.9%

Source : Robert Wood, according to CRPF Nouvelle Aquitaine

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