According to the results of the auction, the state-owned enterprise “Forests of Ukraine” contracted 99% of the volume of round timber and firewood for the fourth quarter of this year, the press service of the SE reported on Telegram.
“Demand for wood continues to grow. (…) The average price of roundwood rose to UAH 6,800/cubic meter (in the third quarter — UAH 5,700/cubic meter, in the second — UAH 5,400/cubic meter). The average price of firewood for industrial use is UAH 2,300 per cubic meter (in the third quarter — UAH 1,800 per cubic meter, in the second — UAH 1,500 per cubic meter),” the report says.
As noted, the starting prices of the auctions were lower than the sales prices in the third quarter. The state-owned enterprise “Forests of Ukraine” tried to restrain price dynamics, but in conditions of free competition, the final prices are determined exclusively by demand.
To increase supply, Lisy Ukrainy put all available resources up for auction (except for firewood for the population, the social sector, and resources for the Armed Forces of Ukraine). A small percentage of products that buyers rejected were immediately put up for additional auction. Products for which there was no demand or which had a high price were put up for Dutch auction to determine the market price.
According to the state-owned enterprise, 1.5 million cubic meters of wood in the second half of the year was supplied to customers under forward contracts at a fixed price, meaning that processors were able to avoid the risk of rising product costs in advance.
In addition, during July-September, timber harvesting consistently exceeded 1 million cubic meters.
“As for increasing harvesting, this issue requires comprehensive solutions, most of which are currently beyond the competence of foresters,” said Forests of Ukraine, adding that the volume of main use logging over the past three years has remained virtually unchanged, within the range of 5.6-5.7 million cubic meters.
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