Timber prices rocket thanks to powerplants

Timber prices have climbed substantially in certain regions, possibly due to the growing need for wood in power plants.

Estonia in particular has seen timber prices climb by more than a fifth over the past year, according to the local news provider Postimees. This growth is predicted to multiply over the course of the coming years.

Speaking to Postimees, head of the timber marketing department of the State Forest Management Centre, Ulvar Kaubi, explained that the completion of the new powerplant in Narva will prompt further fierce competition over wood.

Competitors of the new power plant appear to be in agreement and have expressed their frustration that Narva will be allowed to burn wood chips at a very low efficiency. However, the director of the plant, Tonu Aas, stated that timber prices are not being pushed up by Narva.

Rasmus Ruuda, press spokesman of the Ministry of Economic Affairs and Communications, offered support for Mr Aas. Mr Ruuda said, “It is difficult to assess the impact of the use of wood chips on the price of timber – no direct correlation appears. Demand for wood on foreign markets affect prices on the Estonian wood market much more.”