Sadales tīkls’s policy is driving us to ruin - Zeme un valsts
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Sadales tīkls’s policy is driving us to ruin

In the timber market, everything currently fits the well-known saying, “the higher you climb, the harder you fall”. When it comes to major industry segments such as coniferous timber boards and chipboard, there have been two large waves of price volatility. One was linked to the spread of Covid-19, when many people had a lot of money while stuck at home, had plenty of time, and were buying and doing projects on a mass scale, upsetting the balance of supply and demand. The second wave occurred when Russia launched its war in Ukraine, and it became clear that Russian and Belarusian timber would no longer be available on the market. As is known, sanctions have been applied to Russian and Belarusian timber products. Even if sanctions had not been applied, concluding deals with Russia would have been impossible regardless, if only because banks would not process such transactions. Since Russia, Belarus, and Ukraine accounted for approximately 10% of the coniferous board market in Europe, and in the case of birch plywood, that figure was several tens of percent, buyers began stockpiling en masse once the war started, fearing they might end up in a situation like the one during the Covid crisis, where there is money, but goods cannot be bought. After both these waves, when more goods had been procured than were needed, a cooling-off period began in the market because it was found that warehouses were full.

Sadales tīkls’s policy is driving us to ruin

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