How insects, Covid, protests and private consumption 'skyrocketed' timber prices - Zeme un valsts

How insects, Covid, protests and private consumption 'skyrocketed' timber prices

The unpredictable virus was followed by unpredictable events in the timber and wood products market. Instead of demand falling to record lows, a new housing market crash occurring in the US, construction stopping, and goods transport slowing down due to a drop in demand, the opposite happened. But because the industry forecast a near-catastrophic decline, sawmills and timber mills reduced their production volumes and in some places operations were even halted (such workplaces became Covid-19 clusters and production had to be stopped because employees were sent into quarantine). This was particularly pronounced in the US. Fearing the forecasts, sawmills tried to get rid of what had already been produced as quickly as possible, which temporarily drove timber prices down. This was followed by what no one expected - demand for timber unexpectedly jumped high in the summer and by August it exceeded supply, but there were no longer any timber stocks left. They had to be urgently sought all over the world. And a chain reaction began.

How insects, Covid, protests and private consumption 'skyrocketed' timber prices

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