Home / Lights & Construction

Home > News > Home / Lights & Construction

German gas crisis makes wood the new 'toilet paper'

2022-07-19

Demand for wood in Germany has continued to grow since the Russian-Ukrainian conflict. In the past few weeks, the timber commodity has gone from being a mass-produced product to being in short supply.

The German news network reported that Niels Klahold has been running a lumber shop in Hesse for 20 years. He used to have an easy job at this time, but now he has to answer the phone of nervous customers repeatedly, up to a day. 50 times.

Demand for timber has risen sharply after the German government previously warned of gas shortages. "Wood is the new toilet paper. More and more people are hoarding wood. We don't have a supply right now, we just can't meet people's needs," says Karahold. The Federation of Production and Distribution (BuVBB) stated that there are several reasons for the fact that the stock of wood products is almost zero and that new products cannot be launched in the short term.

Klaus Egly, the first president of BuVBB, said that on the one hand, wood raw materials have been ordered in advance, and on the other hand, existing raw materials cannot be continuously used for production in the short term. As a result, supply chains are almost cut off, products are in short supply, and prices are rising.

Last year, a cubic metre of wood sold for 80 euros, but this year it's between 160 and 180 euros, Karahold said.

Some people say that Kara Holder will make more money from it, but that is not the case. He said, "I and my team have carefully considered how to set the price. Although the cost of raw materials, production and transportation must be paid by the consumer, we still start from the public's point of view and hope to meet everyone's needs."

His wood products sell for 130 euros, and despite the current drop in wood prices, Karahold is no longer planning to add new customers, and he is trying to distribute the remaining wood fairly to customers, especially old ones.

Frank Kienle, director general of HKI, said, "The rise in the price of wood is largely due to the fact that it is a substitute product, that is, fuel oil and natural gas. Suppliers have also significantly increased product prices. In addition, one cubic meter of hardwood produces about the same calorific value as 200 liters of fuel oil, so even though the price of wood has increased by 40%, it is still more cost-effective than natural gas and fuel oil, which is why wood is suddenly popular.

Karahold also said that the shortage of timber in the Hesse region is also related to the "delayed delivery" of the largest local forest owner. Previously, Hesse's environment ministry required logging in certain areas with trees over 100 years old only if it was good for road safety.

Kara Holder, who also works as a forester, said such a rule would cause serious problems. While conservation is a priority, entire forests cannot be left standing still, leaving trees to die pointlessly.

He also said that even trees and diseased trees that have been uprooted by the wind cannot be used for product production, putting a huge pressure on current inventories. He asked the authorities to think carefully about the possible consequences of "delayed deliveries". At least two of the above-mentioned trees are used for production.


DISCLAIMER: All information provided by HMEonline is for reference only. None of these views represents the position of HMEonline, and HMEonline makes no guarantee or commitment to it. If you find any works that infringe your intellectual property rights in the article, please contact us and we will modify or delete them in time.
© 2022 Company, Inc. All rights reserved.
WhatsApp