Surplus supply on German sawmill residue markets makes prices crumble again, reports EUWID pulp and paper.
Prices for sawmill residues in Germany came under pressure to due lower demand and rising chip and roundwood imports in the pulp and paper industry.
Norske Skog Walsum in Germany permanently closed its PM 4 just before Christmas. Demand will fall further after Stora Enso closes its mill in Corbehem, France, which uses roundwood and TMP wood chips made out of spruce and poplar. These shutdown plans took shape in recent weeks. When it comes to wood chip markets in Austria and southern Germany, the 16 January announcement that Binder group in Austria is to close its mill in Hallein, Austria, is playing a major role.
If surplus supply persists, larger price cuts might be on the cards in the second quarter.