The first auctions of unprocessed wood! so triumphantly announced by timber sellers and foresters! turned out to be shocking for processors.
For a week now! I have been receiving indignant calls from woodworkers from different parts of Ukraine. The situation was discussed at the VRU working group on reforming the wood market. Manufacturers of boards! A historical pig blocks! sawdust! and plywood are indignant because they have never seen such an approach to bidding. Obviously! the idea of foresters! whose primary goal was to satisfy the demand of wood processors! failed.
What happened?
While the Verkhovna Rada is working on finalizing country email list the draft law “On the Timber Market”! the State Enterprise “Forests of Ukraine” declared that they have their own panacea for solving all problems with timber trade. Here and now. The panacea A historical pig is the decision to hold semi-annual timber auctions. As a result! within a week or two the state-owned enterprise held the first six-month timber auctions. Based on their results! it immediately reported on the unprecedented success of these auctions. The winning releases immediately spread across various websites! but no one asked the woodworkers’ opinion on such an experiment.
Why is business outraged?
The quarterly and semi-annual model of forming rebuild ukraine: a key step in rebuilding ukraine contracts for the supply of wood prevails in neighboring Poland! but before announcing such auctions! foresters clearly declare what volumes of wood will be sold! within what timeframe! and at what prices.
Our experiment was conducted spontaneously: only a very limited amount of the resource was put up for auction. Information about when the main volumes of wood would be sold! at what prices! and in what volumes.
Therefore! the first trades for both round timber and firewood and au emai list plywood raw materials caused a galloping speculative increase in prices. For many items! the cost of wood increased DOUBLE (!) . Many processors not only did not buy the necessary volumes! but also did not purchase any volumes of the necessary wood at all. Even those that previously praised exchange trading.