Price Formation on the Roundwood Market in Austria

In Austria, roundwood prices are essentially shaped by export prices for timber products and thus by the global market. This applies particularly to the highly competitive market for sawlogs where fluctuations in export prices for sawnwood have a direct effect on the domestic roundwood prices. The strong market position enjoyed by domestic pulp producers explains why international pulp prices have a weak and delayed impact on pulpwood prices in Austria. Alternative uses for small diameter logs explain the effect of prices for sawn timber and energy on the pulpwood price. Events causing major damage to timber have little effect on roundwood pricing. Over the past three decades, roundwood prices rose at a lesser rate than did prices for sawn timber and pulp.