In north-western Russia, the profit situation in numerous sawmills has become more critical in recent weeks, as overpriced roundwood is contrasted by low lumber prices. In the Archangelsk region, softwood sawlogs are currently priced at an average of RUB2,100/m3 freight paid. In Komi, roundwood is quoted in the range RUB1,700-1,900/m3 freight paid. In comparison to the situation at the beginning of 2012, roundwood prices have already declined by an average of RUB300/m3. Forestry companies, whose profit situation is also tight, are cautious about further price reductions. Should prices continue to fall, numerous companies will probably cease trading.
Source:
http://www.euwid-wood-products.com/news/roundwoodsawnwood/single/Artikel/sawmills-suffering-from-overpriced-roundwood.html
