Wood market at the end of third quarter, 1975

Based upon the wood market situation at the end of the 3rd quarter it is to be expected that after a certain period of time the supply would correspond to the demand of the European wood market. It will happen in spite of the still prevailing buyers market. In the course of the last few months the characteristic wood trade concentration tendency has taken place. Even at the end of 1974 the purpose of forest and wood economy was to reduce excessive stock, import and market supply respectively. The result was a rigid production limitation in exporting countries with the exception of the USSR and the East European countries. The inevitable market revival would depend on the general economic development. But considering present stocks a new shortage from 1973 and the phenomenon of distinct suppliers' market might not be avoided. Naturally it would not improve the market situation in general. Forestry and woodworking industry has been negatively influenced by excessive price fluctuation. The situation in 1975 has brought many enterprises into a difficult financial position. The profits made in 1973 and 1974 were very soon consumed. In spite of this stale of affairs at the end of the third quarter there are favorable prospects for the wood market development in 1976. Both in the interest of exporters and importers unnecessary panic should be avoided until the end of 1975.